American Equity Valuation

AEL Stock  USD 56.22  0.02  0.04%   
At this time, the firm appears to be fairly valued. American Equity Inve shows a prevailing Real Value of $55.96 per share. The current price of the firm is $56.22. Our model approximates the value of American Equity Inve from analyzing the firm fundamentals such as profit margin of 0.07 %, and Return On Equity of 0.0782 as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor picking up undervalued instruments and discarding overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Price Book
1.476
Enterprise Value
-4.4 B
Price Sales
1.5785
Forward PE
9.6339
Trailing PE
27.2816
Fairly Valued
Today
56.22
Please note that American Equity's price fluctuation is very steady at this time. Calculation of the real value of American Equity Inve is based on 3 months time horizon. Increasing American Equity's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for American Equity Investment is useful when determining the fair value of the American stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of American Equity. Since American Equity is currently traded on the exchange, buyers and sellers on that exchange determine the market value of American Stock. However, American Equity's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  56.22 Real  55.96 Target  54.8 Hype  56.22 Naive  56.21
The real value of American Stock, also known as its intrinsic value, is the underlying worth of American Equity Inve Company, which is reflected in its stock price. It is based on American Equity's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of American Equity's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence American Equity's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
55.96
Real Value
56.23
Upside
Estimating the potential upside or downside of American Equity Investment helps investors to forecast how American stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of American Equity more accurately as focusing exclusively on American Equity's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
1.681.771.98
Details
Hype
Prediction
LowEstimatedHigh
55.9556.2256.49
Details
Potential
Annual Dividend
LowForecastedHigh
0.130.130.13
Details
5 Analysts
Consensus
LowTarget PriceHigh
49.8754.8060.83
Details

American Equity Investments

5.9 Billion

American Equity Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining American Equity's current stock value. Our valuation model uses many indicators to compare American Equity value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across American Equity competition to find correlations between indicators driving American Equity's intrinsic value. More Info.
American Equity Investment is number one stock in price to earning category among related companies. It is number one stock in beta category among related companies totaling about  0.30  of Beta per Price To Earning. The ratio of Price To Earning to Beta for American Equity Investment is roughly  3.33 . Comparative valuation analysis is a catch-all model that can be used if you cannot value American Equity by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for American Equity's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the American Equity's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates American Equity's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in American Equity and how it compares across the competition.

About American Equity Valuation

The stock valuation mechanism determines the current worth of American Equity Investment on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of American Equity Investment. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of American Equity Inve based exclusively on its fundamental and basic technical indicators. By analyzing American Equity's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of American Equity's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of American Equity. We calculate exposure to American Equity's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to American Equity's related companies.
Last ReportedProjected for 2024
Gross Profit1.4 B1.5 B
Pretax Profit Margin 0.18  0.10 
Operating Profit Margin(0.0008)(0.0008)
Net Profit Margin 0.12  0.07 
Gross Profit Margin 0.82  1.02 

8 Steps to conduct American Equity's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates American Equity's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct American Equity's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain American Equity's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine American Equity's revenue streams: Identify American Equity's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research American Equity's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish American Equity's growth potential: Evaluate American Equity's management, business model, and growth potential.
  • Determine American Equity's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate American Equity's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
American Equity's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether American Equity's value is low or high relative to the company's performance and growth projections. Determining the market value of American Equity can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of American Equity represents a small ownership stake in the entity. As a stockholder of American, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

American Equity Dividends Analysis For Valuation

Please note that American Equity has scaled down on payment of dividends at this time. At this time, American Equity's Retained Earnings are quite stable compared to the past year. Retained Earnings Total Equity is expected to rise to about 3.3 B this year, although the value of Price Earnings Ratio will most likely fall to 14.77.
There are various types of dividends American Equity can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of American shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from American Equity Investment directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When American pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of American Equity by the value of the dividends paid out.

American Equity Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as American Equity does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding81 M
Quarterly Earnings Growth Y O Y0.188
Forward Price Earnings9.6339

American Equity Current Valuation Indicators

Valuation refers to the process of determining the present value of American Equity Investment and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value American we look at many different elements of the entity such as American's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. American Equity's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final American Equity's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as American Equity, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use American Equity's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes American Equity's worth.
When determining whether American Equity Inve is a strong investment it is important to analyze American Equity's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact American Equity's future performance. For an informed investment choice regarding American Stock, refer to the following important reports:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Equity Investment. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in income.
Note that the American Equity Inve information on this page should be used as a complementary analysis to other American Equity's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.

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When running American Equity's price analysis, check to measure American Equity's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Equity is operating at the current time. Most of American Equity's value examination focuses on studying past and present price action to predict the probability of American Equity's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Equity's price. Additionally, you may evaluate how the addition of American Equity to your portfolios can decrease your overall portfolio volatility.
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Is American Equity's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Equity. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Equity listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.188
Earnings Share
2.06
Revenue Per Share
35.569
Quarterly Revenue Growth
0.614
Return On Assets
0.0027
The market value of American Equity Inve is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Equity's value that differs from its market value or its book value, called intrinsic value, which is American Equity's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Equity's market value can be influenced by many factors that don't directly affect American Equity's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Equity's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Equity is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Equity's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.