China Automotive Valuation
| CAAS Stock | USD 3.57 0.06 1.65% |
At this time, the firm appears to be undervalued. China Automotive Systems shows a prevailing Real Value of $4.55 per share. The current price of the firm is $3.57. Our model approximates the value of China Automotive Systems from analyzing the firm fundamentals such as Return On Equity of 0.12, profit margin of 0.07 %, and Current Valuation of 55.46 M as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor acquiring undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Undervalued
Today
Please note that China Automotive's price fluctuation is slightly risky at this time. Calculation of the real value of China Automotive Systems is based on 3 months time horizon. Increasing China Automotive's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for China Automotive Systems is useful when determining the fair value of the China stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of China Automotive. Since China Automotive is currently traded on the exchange, buyers and sellers on that exchange determine the market value of China Stock. However, China Automotive'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 3.57 | Real 4.55 | Hype 3.57 | Naive 3.42 |
The real value of China Stock, also known as its intrinsic value, is the underlying worth of China Automotive Systems Company, which is reflected in its stock price. It is based on China Automotive's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of China Automotive'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 China Automotive'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.
Estimating the potential upside or downside of China Automotive Systems helps investors to forecast how China 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 China Automotive more accurately as focusing exclusively on China Automotive's fundamentals will not take into account other important factors: China Automotive Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining China Automotive's current stock value. Our valuation model uses many indicators to compare China Automotive value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across China Automotive competition to find correlations between indicators driving China Automotive's intrinsic value. More Info.China Automotive Systems is rated below average in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.03 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for China Automotive Systems is roughly 29.15 . Comparative valuation analysis is a catch-all model that can be used if you cannot value China Automotive by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for China Automotive'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 China Automotive'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 China Automotive'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 China Automotive and how it compares across the competition.
About China Automotive Valuation
The stock valuation mechanism determines the current worth of China Automotive Systems on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of China Automotive Systems. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of China Automotive Systems based exclusively on its fundamental and basic technical indicators. By analyzing China Automotive'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 China Automotive'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 China Automotive. We calculate exposure to China Automotive's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to China Automotive's related companies.China Automotive Systems, Inc., through its subsidiaries, manufactures and sells automotive systems and components in the Peoples Republic of China. China Automotive Systems, Inc. was incorporated in 1999 and is headquartered in Jingzhou, the Peoples Republic of China. China Automotive operates under Auto Parts classification in the United States and is traded on NASDAQ Exchange. It employs 49 people.
8 Steps to conduct China Automotive's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates China Automotive'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 China Automotive's valuation analysis, follow these 8 steps:- Gather financial information: Obtain China Automotive's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine China Automotive's revenue streams: Identify China Automotive's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research China Automotive's industry and market trends, including the size of the market, growth rate, and competition.
- Establish China Automotive's growth potential: Evaluate China Automotive's management, business model, and growth potential.
- Determine China Automotive'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 China Automotive's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
China Automotive 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 China Automotive 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 Outstanding | 30.2 M | |
| Quarterly Earnings Growth Y O Y | 1.582 | |
| Forward Price Earnings | 14.881 |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in China Automotive Systems. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. Note that the China Automotive Systems information on this page should be used as a complementary analysis to other China Automotive'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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Complementary Tools for China Stock analysis
When running China Automotive's price analysis, check to measure China Automotive'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 China Automotive is operating at the current time. Most of China Automotive's value examination focuses on studying past and present price action to predict the probability of China Automotive's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move China Automotive's price. Additionally, you may evaluate how the addition of China Automotive to your portfolios can decrease your overall portfolio volatility.
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Is China Automotive'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 China Automotive. If investors know China 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 China Automotive listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of China Automotive Systems is measured differently than its book value, which is the value of China that is recorded on the company's balance sheet. Investors also form their own opinion of China Automotive's value that differs from its market value or its book value, called intrinsic value, which is China Automotive'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 China Automotive's market value can be influenced by many factors that don't directly affect China Automotive'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 China Automotive's value and its price as these two are different measures arrived at by different means. Investors typically determine if China Automotive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, China Automotive'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.