Fomento Economico Valuation

FMX Stock  USD 130.25  0.30  0.23%   
At this time, the firm appears to be fairly valued. Fomento Economico shows a prevailing Real Value of $128.3 per share. The current price of the firm is $130.25. Our model computes the value of Fomento Economico from reviewing the firm fundamentals such as Profit Margin of 0.09 %, shares outstanding of 1.79 B, and Current Valuation of 234.48 B as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise acquiring undervalued instruments and dropping overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
Price Book
10.2888
Enterprise Value
234.5 B
Enterprise Value Ebitda
3.157
Price Sales
0.3325
Forward PE
7.3964
Fairly Valued
Today
130.25
Please note that Fomento Economico's price fluctuation is very steady at this time. Calculation of the real value of Fomento Economico is based on 3 months time horizon. Increasing Fomento Economico's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Fomento Economico Mexicano is useful when determining the fair value of the Fomento stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Fomento Economico. Since Fomento Economico is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Fomento Stock. However, Fomento Economico'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  130.25 Real  128.3 Target  126.33 Hype  130.3 Naive  132.54
The real value of Fomento Stock, also known as its intrinsic value, is the underlying worth of Fomento Economico Company, which is reflected in its stock price. It is based on Fomento Economico's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Fomento Economico'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 Fomento Economico'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.
126.23
Downside
128.30
Real Value
130.37
Upside
Estimating the potential upside or downside of Fomento Economico Mexicano helps investors to forecast how Fomento 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 Fomento Economico more accurately as focusing exclusively on Fomento Economico's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.551.201.51
Details
Hype
Prediction
LowEstimatedHigh
128.23130.30132.37
Details
Potential
Annual Dividend
LowForecastedHigh
1.231.261.28
Details
14 Analysts
Consensus
LowTarget PriceHigh
114.96126.33140.23
Details

Fomento Economico Investments

(39.7 Billion)

Fomento Economico Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Fomento Economico's current stock value. Our valuation model uses many indicators to compare Fomento Economico value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Fomento Economico competition to find correlations between indicators driving Fomento Economico's intrinsic value. More Info.
Fomento Economico Mexicano is rated # 2 in last dividend paid category among related companies. It is rated below average in price to earning category among related companies reporting about  5.12  of Price To Earning per Last Dividend Paid. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Fomento Economico by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Fomento Economico'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 Fomento Economico'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 Fomento Economico'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 Fomento Economico and how it compares across the competition.

About Fomento Economico Valuation

The stock valuation mechanism determines the current worth of Fomento Economico Mexicano on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Fomento Economico Mexicano. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Fomento Economico based exclusively on its fundamental and basic technical indicators. By analyzing Fomento Economico'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 Fomento Economico'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 Fomento Economico. We calculate exposure to Fomento Economico's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Fomento Economico's related companies.
Last ReportedProjected for 2024
Gross Profit277.4 B291.3 B
Pretax Profit Margin 0.08  0.11 
Operating Profit Margin 0.08  0.12 
Net Profit Margin 0.09  0.05 
Gross Profit Margin 0.39  0.47 

Fomento Economico Quarterly Retained Earnings

304.65 Billion

8 Steps to conduct Fomento Economico's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Fomento Economico'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 Fomento Economico's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Fomento Economico's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Fomento Economico's revenue streams: Identify Fomento Economico's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Fomento Economico's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Fomento Economico's growth potential: Evaluate Fomento Economico's management, business model, and growth potential.
  • Determine Fomento Economico'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 Fomento Economico'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.
Fomento Economico's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Fomento Economico's value is low or high relative to the company's performance and growth projections. Determining the market value of Fomento Economico can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Fomento Economico represents a small ownership stake in the entity. As a stockholder of Fomento, 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.

Fomento Economico Dividends Analysis For Valuation

Dividend Payout Ratio is likely to rise to 0.38 in 2024, despite the fact that Dividends Paid is likely to grow to (17.9 B). . At this time, Fomento Economico's Retained Earnings are fairly stable compared to the past year. Price Earnings Ratio is likely to rise to 136.62 in 2024, whereas Price Earnings To Growth Ratio is likely to drop (1.83) in 2024.
Last ReportedProjected for 2024
Dividends Paid-18.8 B-17.9 B
Dividend Yield 0  0 
Dividend Payout Ratio 0.29  0.38 
Dividend Paid And Capex Coverage Ratio(2.78)(2.64)
There are various types of dividends Fomento Economico 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 Fomento 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 Fomento Economico Mexicano directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Fomento pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Fomento Economico by the value of the dividends paid out.

Fomento Economico 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 Fomento Economico 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 Outstanding17.9 B
Quarterly Earnings Growth Y O Y-0.168
Forward Price Earnings7.3964

Fomento Economico Current Valuation Indicators

Valuation refers to the process of determining the present value of Fomento Economico Mexicano and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Fomento we look at many different elements of the entity such as Fomento's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Fomento Economico'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 Fomento Economico'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 Fomento Economico, 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 Fomento Economico'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 Fomento Economico's worth.
When determining whether Fomento Economico offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Fomento Economico's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Fomento Economico Mexicano Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Fomento Economico Mexicano Stock:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Fomento Economico Mexicano. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.
You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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Is Fomento Economico'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 Fomento Economico. If investors know Fomento 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 Fomento Economico 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
(0.17)
Dividend Share
4.397
Earnings Share
1.15
Revenue Per Share
K
Quarterly Revenue Growth
0.021
The market value of Fomento Economico is measured differently than its book value, which is the value of Fomento that is recorded on the company's balance sheet. Investors also form their own opinion of Fomento Economico's value that differs from its market value or its book value, called intrinsic value, which is Fomento Economico'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 Fomento Economico's market value can be influenced by many factors that don't directly affect Fomento Economico'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 Fomento Economico's value and its price as these two are different measures arrived at by different means. Investors typically determine if Fomento Economico is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fomento Economico'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.