Extreme Networks Valuation
| EXTR Stock | USD 10.94 0.19 1.71% |
At this time, the firm appears to be undervalued. Extreme Networks shows a prevailing Real Value of $16.79 per share. The current price of the firm is $10.94. Our model computes the value of Extreme Networks from reviewing the firm fundamentals such as Current Valuation of 1.43 B, shares outstanding of 128.73 M, and Profit Margin of 0.06 % as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise buying undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will submerge. Key fundamental drivers impacting Extreme Networks' valuation include:
Price Book 12.7203 | Enterprise Value 1.4 B | Enterprise Value Ebitda 9.5119 | Price Sales 1.0234 | Forward PE 13.4048 |
Undervalued
Today
Please note that Extreme Networks' price fluctuation is not too volatile at this time. Calculation of the real value of Extreme Networks is based on 3 months time horizon. Increasing Extreme Networks' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Extreme Networks is useful when determining the fair value of the Extreme stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Extreme Networks. Since Extreme Networks is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Extreme Stock. However, Extreme Networks' 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 10.94 | Real 16.79 | Target 32.88 | Hype 10.81 | Naive 10.73 |
The real value of Extreme Stock, also known as its intrinsic value, is the underlying worth of Extreme Networks Company, which is reflected in its stock price. It is based on Extreme Networks' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Extreme Networks' 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 Extreme Networks' 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 Extreme Networks helps investors to forecast how Extreme 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 Extreme Networks more accurately as focusing exclusively on Extreme Networks' fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Extreme Networks' intrinsic value based on its ongoing forecasts of Extreme Networks' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Extreme Networks' closest peers. When choosing an evaluation method for Extreme Networks, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Extreme Networks Investments |
|
Extreme Valuation Trend
Knowing Extreme Networks' actual value is paramount for traders to make sound investment determinations. Extreme Networks' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Extreme Networks' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Extreme Networks' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Extreme Market Cap
Extreme Networks is rated # 5 in market capitalization category among related companies. Market capitalization of Information Technology industry is currently estimated at about 95.55 Billion. Extreme Networks claims roughly 1.41 Billion in market capitalization contributing just under 2% to equities under Information Technology industry.Extreme Networks Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Extreme Networks's current stock value. Our valuation model uses many indicators to compare Extreme Networks value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Extreme Networks competition to find correlations between indicators driving Extreme Networks's intrinsic value. More Info.Extreme Networks is rated # 4 in price to earning category among related companies. It is rated # 2 in price to book category among related companies fabricating about 0.22 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Extreme Networks is roughly 4.53 . As of 04/19/2024, Price To Book Ratio is likely to grow to 27.30. Comparative valuation analysis is a catch-all model that can be used if you cannot value Extreme Networks by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Extreme Networks' 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 Extreme Networks' 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 Extreme Networks' 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 Extreme Networks and how it compares across the competition.
About Extreme Networks Valuation
The stock valuation mechanism determines the current worth of Extreme Networks on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Extreme Networks. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Extreme Networks based exclusively on its fundamental and basic technical indicators. By analyzing Extreme Networks'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 Extreme Networks'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 Extreme Networks. We calculate exposure to Extreme Networks's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Extreme Networks's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 867.9 M | 911.3 M | |
| Pretax Profit Margin | 0.06 | 0.07 | |
| Operating Profit Margin | 0.07 | 0.08 | |
| Net Profit Margin | 0.05 | 0.06 | |
| Gross Profit Margin | 0.52 | 0.42 |
8 Steps to conduct Extreme Networks' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Extreme Networks' 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 Extreme Networks' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Extreme Networks' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Extreme Networks' revenue streams: Identify Extreme Networks' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Extreme Networks' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Extreme Networks' growth potential: Evaluate Extreme Networks' management, business model, and growth potential.
- Determine Extreme Networks' 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 Extreme Networks' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Extreme Networks 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 Extreme Networks 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 | 133.6 M | |
| Quarterly Earnings Growth Y O Y | -0.769 | |
| Forward Price Earnings | 13.4048 |
Extreme Networks Current Valuation Indicators
Valuation refers to the process of determining the present value of Extreme Networks and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Extreme we look at many different elements of the entity such as Extreme's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Extreme Networks' 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 Extreme Networks' 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 Extreme Networks, 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 Extreme Networks' 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 Extreme Networks' worth.When determining whether Extreme Networks is a strong investment it is important to analyze Extreme Networks' 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 Extreme Networks' future performance. For an informed investment choice regarding Extreme Stock, refer to the following important reports: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Extreme Networks. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate. To learn how to invest in Extreme Stock, please use our How to Invest in Extreme Networks guide.You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
Complementary Tools for Extreme Stock analysis
When running Extreme Networks' price analysis, check to measure Extreme Networks' 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 Extreme Networks is operating at the current time. Most of Extreme Networks' value examination focuses on studying past and present price action to predict the probability of Extreme Networks' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Extreme Networks' price. Additionally, you may evaluate how the addition of Extreme Networks to your portfolios can decrease your overall portfolio volatility.
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |
Is Extreme Networks' 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 Extreme Networks. If investors know Extreme 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 Extreme Networks 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 (0.77) | Earnings Share 0.6 | Revenue Per Share 10.456 | Quarterly Revenue Growth (0.07) | Return On Assets 0.0723 |
The market value of Extreme Networks is measured differently than its book value, which is the value of Extreme that is recorded on the company's balance sheet. Investors also form their own opinion of Extreme Networks' value that differs from its market value or its book value, called intrinsic value, which is Extreme Networks' 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 Extreme Networks' market value can be influenced by many factors that don't directly affect Extreme Networks' 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 Extreme Networks' value and its price as these two are different measures arrived at by different means. Investors typically determine if Extreme Networks is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Extreme Networks' 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.