HealthStream Valuation
| HSTM Stock | USD 23.99 0.48 1.96% |
At this time, the firm appears to be undervalued. HealthStream retains a regular Real Value of $26.95 per share. The prevalent price of the firm is $23.99. Our model calculates the value of HealthStream from evaluating the firm fundamentals such as return on equity of 0.0451, and Return On Asset of 0.0201 as well as inspecting its technical indicators and probability of bankruptcy. In general, most investors encourage obtaining undervalued assets and abandoning overvalued assets since, at some point, asset prices and their ongoing real values will come together. Key fundamental drivers impacting HealthStream's valuation include:
Price Book 2.2088 | Enterprise Value 699.6 M | Enterprise Value Ebitda 12.2912 | Price Sales 2.6971 | Forward PE 47.619 |
Undervalued
Today
Please note that HealthStream's price fluctuation is very steady at this time. Calculation of the real value of HealthStream is based on 3 months time horizon. Increasing HealthStream's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for HealthStream is useful when determining the fair value of the HealthStream stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of HealthStream. Since HealthStream is currently traded on the exchange, buyers and sellers on that exchange determine the market value of HealthStream Stock. However, HealthStream'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 23.99 | Real 26.95 | Target 29.0 | Hype 24.05 | Naive 23.41 |
The real value of HealthStream Stock, also known as its intrinsic value, is the underlying worth of HealthStream Company, which is reflected in its stock price. It is based on HealthStream's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of HealthStream'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 HealthStream'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 HealthStream helps investors to forecast how HealthStream 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 HealthStream more accurately as focusing exclusively on HealthStream's 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 HealthStream's intrinsic value based on its ongoing forecasts of HealthStream's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against HealthStream's closest peers. When choosing an evaluation method for HealthStream, 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.
HealthStream Investments |
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HealthStream Valuation Trend
Knowing HealthStream's actual value is paramount for traders to make sound investment determinations. HealthStream's real value is not only important for the investor to make better decisions but also for a more accurate overall view of HealthStream's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both HealthStream's 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.
HealthStream Market Cap
HealthStream is rated below average in market capitalization category among related companies. Market capitalization of Health Care industry is currently estimated at about 58.44 Billion. HealthStream claims roughly 749.92 Million in market capitalization contributing just under 2% to equities under Health Care industry.HealthStream Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining HealthStream's current stock value. Our valuation model uses many indicators to compare HealthStream value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across HealthStream competition to find correlations between indicators driving HealthStream's intrinsic value. More Info.HealthStream is rated # 2 in price to earning category among related companies. It is rated # 5 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 HealthStream is roughly 39.46 . As of the 19th of April 2024, Price To Book Ratio is likely to drop to 2.01. Comparative valuation analysis is a catch-all model that can be used if you cannot value HealthStream by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for HealthStream'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 HealthStream'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 HealthStream'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 HealthStream and how it compares across the competition.
About HealthStream Valuation
The stock valuation mechanism determines the current worth of HealthStream on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of HealthStream. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of HealthStream based exclusively on its fundamental and basic technical indicators. By analyzing HealthStream'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 HealthStream'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 HealthStream. We calculate exposure to HealthStream's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to HealthStream's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 143 M | 80.7 M | |
| Pretax Profit Margin | 0.07 | 0.07 | |
| Operating Profit Margin | 0.06 | 0.06 | |
| Net Profit Margin | 0.05 | 0.06 | |
| Gross Profit Margin | 0.51 | 0.69 |
8 Steps to conduct HealthStream's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates HealthStream'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 HealthStream's valuation analysis, follow these 8 steps:- Gather financial information: Obtain HealthStream's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine HealthStream's revenue streams: Identify HealthStream's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research HealthStream's industry and market trends, including the size of the market, growth rate, and competition.
- Establish HealthStream's growth potential: Evaluate HealthStream's management, business model, and growth potential.
- Determine HealthStream'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 HealthStream's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of HealthStream represents a small ownership stake in the entity. As a stockholder of HealthStream, 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.
HealthStream Dividends Analysis For Valuation
As of the 19th of April 2024, Dividend Payout Ratio is likely to grow to 0.26, though Dividends Paid is likely to grow to (2.9 M). . At this time, HealthStream's Retained Earnings are very stable compared to the past year. As of the 19th of April 2024, Retained Earnings Total Equity is likely to grow to about 82.3 M, while Price Earnings Ratio is likely to drop 36.54.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -3.1 M | -2.9 M | |
| Dividend Yield | 0 | 0 | |
| Dividend Payout Ratio | 0.23 | 0.26 | |
| Dividend Paid And Capex Coverage Ratio | (2.56) | (2.44) |
There are various types of dividends HealthStream 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 HealthStream 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 HealthStream directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When HealthStream pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of HealthStream by the value of the dividends paid out.
HealthStream 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 HealthStream 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 | 30.7 M | |
| Quarterly Earnings Growth Y O Y | 0.878 | |
| Forward Price Earnings | 47.619 |
HealthStream Current Valuation Indicators
Valuation refers to the process of determining the present value of HealthStream and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value HealthStream we look at many different elements of the entity such as HealthStream's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. HealthStream'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 HealthStream'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 HealthStream, 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 HealthStream'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 HealthStream's worth.When determining whether HealthStream is a strong investment it is important to analyze HealthStream'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 HealthStream's future performance. For an informed investment choice regarding HealthStream Stock, refer to the following important reports: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in HealthStream. 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 HealthStream Stock, please use our How to Invest in HealthStream guide.You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Complementary Tools for HealthStream Stock analysis
When running HealthStream's price analysis, check to measure HealthStream'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 HealthStream is operating at the current time. Most of HealthStream's value examination focuses on studying past and present price action to predict the probability of HealthStream's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move HealthStream's price. Additionally, you may evaluate how the addition of HealthStream to your portfolios can decrease your overall portfolio volatility.
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Is HealthStream'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 HealthStream. If investors know HealthStream 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 HealthStream 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 0.878 | Dividend Share 0.1 | Earnings Share 0.5 | Revenue Per Share 9.128 | Quarterly Revenue Growth 0.03 |
The market value of HealthStream is measured differently than its book value, which is the value of HealthStream that is recorded on the company's balance sheet. Investors also form their own opinion of HealthStream's value that differs from its market value or its book value, called intrinsic value, which is HealthStream'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 HealthStream's market value can be influenced by many factors that don't directly affect HealthStream'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 HealthStream's value and its price as these two are different measures arrived at by different means. Investors typically determine if HealthStream is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, HealthStream'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.