Methode Electronics Valuation
| MEI Stock | USD 10.87 0.65 5.64% |
At this time, the firm appears to be overvalued. Methode Electronics secures a last-minute Real Value of $10.44 per share. The latest price of the firm is $10.87. Our model forecasts the value of Methode Electronics from analyzing the firm fundamentals such as Profit Margin of (0.05) %, return on equity of -0.0651, and Current Valuation of 623.49 M as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend purchasing undervalued stocks and trading away overvalued stocks since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting Methode Electronics' valuation include:
Price Book 0.5306 | Enterprise Value 623.5 M | Enterprise Value Ebitda 54.6523 | Price Sales 0.3892 | Forward PE 13.6612 |
Overvalued
Today
Please note that Methode Electronics' price fluctuation is slightly risky at this time. Calculation of the real value of Methode Electronics is based on 3 months time horizon. Increasing Methode Electronics' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Methode Electronics is useful when determining the fair value of the Methode stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Methode Electronics. Since Methode Electronics is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Methode Stock. However, Methode Electronics' 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 10.87 | Real 10.44 | Target 39.0 | Hype 10.87 | Naive 11.92 |
The real value of Methode Stock, also known as its intrinsic value, is the underlying worth of Methode Electronics Company, which is reflected in its stock price. It is based on Methode Electronics' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Methode Electronics' 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 Methode Electronics' 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 Methode Electronics helps investors to forecast how Methode 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 Methode Electronics more accurately as focusing exclusively on Methode Electronics' 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 Methode Electronics' intrinsic value based on its ongoing forecasts of Methode Electronics' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Methode Electronics' closest peers. When choosing an evaluation method for Methode Electronics, 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.
Methode Electronics Investments |
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Methode Valuation Trend
Knowing Methode Electronics' actual value is paramount for traders to make sound investment determinations. Methode Electronics' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Methode Electronics' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Methode Electronics' 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.
Methode Market Cap
Methode Electronics is regarded fifth in market capitalization category among related companies. Market capitalization of Information Technology industry is now estimated at about 11.51 Billion. Methode Electronics holds roughly 384.69 Million in market capitalization claiming about 3% of equities under Information Technology industry.Methode Electronics Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Methode Electronics's current stock value. Our valuation model uses many indicators to compare Methode Electronics value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Methode Electronics competition to find correlations between indicators driving Methode Electronics's intrinsic value. More Info.Methode Electronics is regarded fifth in price to earning category among related companies. It is regarded fifth in price to book category among related companies fabricating about 0.04 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Methode Electronics is roughly 26.08 . The current Price To Book Ratio is estimated to decrease to 1.18. Comparative valuation analysis is a catch-all model that can be used if you cannot value Methode Electronics by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Methode Electronics' 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 Methode Electronics' earnings, one of the primary drivers of an investment's value.Methode Electronics' Earnings Breakdown by Geography
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Methode Electronics' 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 Methode Electronics and how it compares across the competition.
About Methode Electronics Valuation
The stock valuation mechanism determines the current worth of Methode Electronics on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Methode Electronics. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Methode Electronics based exclusively on its fundamental and basic technical indicators. By analyzing Methode Electronics'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 Methode Electronics'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 Methode Electronics. We calculate exposure to Methode Electronics's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Methode Electronics's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 303.7 M | 318.9 M | |
| Pretax Profit Margin | 0.10 | 0.1 | |
| Operating Profit Margin | 0.1 | 0.07 | |
| Net Profit Margin | 0.09 | 0.05 | |
| Gross Profit Margin | 0.23 | 0.28 |
Methode Electronics Quarterly Retained Earnings |
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8 Steps to conduct Methode Electronics' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Methode Electronics' 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 Methode Electronics' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Methode Electronics' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Methode Electronics' revenue streams: Identify Methode Electronics' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Methode Electronics' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Methode Electronics' growth potential: Evaluate Methode Electronics' management, business model, and growth potential.
- Determine Methode Electronics' 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 Methode Electronics' 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 Methode Electronics represents a small ownership stake in the entity. As a stockholder of Methode, 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.
Methode Electronics Dividends Analysis For Valuation
As of now, Methode Electronics' Dividends Paid is increasing as compared to previous years. The Methode Electronics' current Dividend Yield is estimated to increase to 0.02, while Dividend Paid And Capex Coverage Ratio is projected to decrease to (5.89). . As of now, Methode Electronics' Retained Earnings are increasing as compared to previous years. The Methode Electronics' current Earnings Yield is estimated to increase to 0.09, while Retained Earnings Total Equity is projected to decrease to under 417.9 M.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 22.8 M | 23.9 M | |
| Dividend Yield | 0.01 | 0.02 | |
| Dividend Payout Ratio | 0.20 | 0.25 | |
| Dividend Paid And Capex Coverage Ratio | (5.61) | (5.89) |
There are various types of dividends Methode Electronics 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 Methode 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 Methode Electronics directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Methode pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Methode Electronics by the value of the dividends paid out.
Methode Electronics 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 Methode Electronics 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 | 36.8 M | |
| Quarterly Earnings Growth Y O Y | -0.966 | |
| Forward Price Earnings | 13.6612 |
Methode Electronics Current Valuation Indicators
Valuation refers to the process of determining the present value of Methode Electronics and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Methode we look at many different elements of the entity such as Methode's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Methode Electronics' 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 Methode Electronics' 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 Methode Electronics, 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 Methode Electronics' 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 Methode Electronics' worth.When determining whether Methode Electronics offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Methode Electronics' 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 Methode Electronics Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Methode Electronics Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Methode Electronics. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in income. For more detail on how to invest in Methode Stock please use our How to Invest in Methode Electronics guide.Note that the Methode Electronics information on this page should be used as a complementary analysis to other Methode Electronics' 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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Complementary Tools for Methode Stock analysis
When running Methode Electronics' price analysis, check to measure Methode Electronics' 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 Methode Electronics is operating at the current time. Most of Methode Electronics' value examination focuses on studying past and present price action to predict the probability of Methode Electronics' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Methode Electronics' price. Additionally, you may evaluate how the addition of Methode Electronics to your portfolios can decrease your overall portfolio volatility.
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Is Methode Electronics' 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 Methode Electronics. If investors know Methode 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 Methode Electronics 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 (0.97) | Dividend Share 0.56 | Earnings Share (1.63) | Revenue Per Share 31.999 | Quarterly Revenue Growth (0.07) |
The market value of Methode Electronics is measured differently than its book value, which is the value of Methode that is recorded on the company's balance sheet. Investors also form their own opinion of Methode Electronics' value that differs from its market value or its book value, called intrinsic value, which is Methode Electronics' 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 Methode Electronics' market value can be influenced by many factors that don't directly affect Methode Electronics' 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 Methode Electronics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Methode Electronics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Methode Electronics' 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.