Johnson Controls Valuation
| JCI Stock | USD 63.69 0.54 0.84% |
At this time, the firm appears to be undervalued. Johnson Controls Int retains a regular Real Value of $72.49 per share. The prevalent price of the firm is $63.69. Our model calculates the value of Johnson Controls Int from evaluating the firm fundamentals such as Return On Equity of 0.13, current valuation of 55.31 B, and Return On Asset of 0.0402 as well as inspecting its technical indicators and probability of bankruptcy. In general, most investors encourage purchasing undervalued assets and trading away overvalued assets since, at some point, asset prices and their ongoing real values will come together.
Undervalued
Today
Please note that Johnson Controls' price fluctuation is very steady at this time. Calculation of the real value of Johnson Controls Int is based on 3 months time horizon. Increasing Johnson Controls' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Johnson Controls International is useful when determining the fair value of the Johnson stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Johnson Controls. Since Johnson Controls is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Johnson Stock. However, Johnson Controls' 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 63.69 | Real 72.49 | Hype 63.69 | Naive 63.56 |
The real value of Johnson Stock, also known as its intrinsic value, is the underlying worth of Johnson Controls Int Company, which is reflected in its stock price. It is based on Johnson Controls' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Johnson Controls' 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 Johnson Controls' 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 Johnson Controls International helps investors to forecast how Johnson 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 Johnson Controls more accurately as focusing exclusively on Johnson Controls' fundamentals will not take into account other important factors: Johnson Controls Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Johnson Controls's current stock value. Our valuation model uses many indicators to compare Johnson Controls value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Johnson Controls competition to find correlations between indicators driving Johnson Controls's intrinsic value. More Info.Johnson Controls International is rated third overall in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.09 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Johnson Controls International is roughly 11.46 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Johnson Controls by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Johnson Controls' 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 Johnson Controls' 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 Johnson Controls' 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 Johnson Controls and how it compares across the competition.
About Johnson Controls Valuation
The stock valuation mechanism determines the current worth of Johnson Controls International on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Johnson Controls International. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Johnson Controls Int based exclusively on its fundamental and basic technical indicators. By analyzing Johnson Controls'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 Johnson Controls'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 Johnson Controls. We calculate exposure to Johnson Controls's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Johnson Controls's related companies.Johnson Controls International plc, together with its subsidiaries, engages in engineering, manufacturing, commissioning, and retrofitting building products and systems in the United States, Europe, the Asia Pacific, and internationally. Johnson Controls International plc was incorporated in 1885 and is headquartered in Cork, Ireland. Johnson Controls operates under Diversified Industrial classification in the United States and is traded on New York Stock Exchange. It employs 102000 people.
8 Steps to conduct Johnson Controls' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Johnson Controls' 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 Johnson Controls' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Johnson Controls' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Johnson Controls' revenue streams: Identify Johnson Controls' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Johnson Controls' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Johnson Controls' growth potential: Evaluate Johnson Controls' management, business model, and growth potential.
- Determine Johnson Controls' 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 Johnson Controls' 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 Johnson Controls represents a small ownership stake in the entity. As a stockholder of Johnson, 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.
Johnson Controls Dividends Analysis For Valuation
There are various types of dividends Johnson Controls 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 Johnson 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 Johnson Controls International directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Johnson pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Johnson Controls by the value of the dividends paid out.
Johnson Controls 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 Johnson Controls 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 | 687.4 M | |
| Quarterly Earnings Growth Y O Y | 2.232 | |
| Forward Price Earnings | 18.0832 |
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Johnson Controls International. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in main economic indicators. Note that the Johnson Controls Int information on this page should be used as a complementary analysis to other Johnson Controls' 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Complementary Tools for Johnson Stock analysis
When running Johnson Controls' price analysis, check to measure Johnson Controls' 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 Johnson Controls is operating at the current time. Most of Johnson Controls' value examination focuses on studying past and present price action to predict the probability of Johnson Controls' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Johnson Controls' price. Additionally, you may evaluate how the addition of Johnson Controls to your portfolios can decrease your overall portfolio volatility.
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Is Johnson Controls' 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 Johnson Controls. If investors know Johnson 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 Johnson Controls 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 Johnson Controls Int is measured differently than its book value, which is the value of Johnson that is recorded on the company's balance sheet. Investors also form their own opinion of Johnson Controls' value that differs from its market value or its book value, called intrinsic value, which is Johnson Controls' 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 Johnson Controls' market value can be influenced by many factors that don't directly affect Johnson Controls' 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 Johnson Controls' value and its price as these two are different measures arrived at by different means. Investors typically determine if Johnson Controls is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Johnson Controls' 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.