NovaGold Resources Valuation
| NG Stock | USD 2.85 0.08 2.73% |
Based on Macroaxis valuation methodology, the firm appears to be undervalued. NovaGold Resources secures a last-minute Real Value of $4.44 per share. The latest price of the firm is $2.85. Our model forecasts the value of NovaGold Resources from analyzing the firm fundamentals such as Return On Equity of -17.91, current valuation of 963.18 M, and Shares Owned By Insiders of 26.40 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend locking in undervalued stocks and disposing overvalued stocks since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting NovaGold Resources' valuation include:
Price Book 25.8 K | Enterprise Value 963.2 M | Enterprise Value Ebitda (33.24) |
Undervalued
Today
Please note that NovaGold Resources' price fluctuation is relatively risky at this time. Calculation of the real value of NovaGold Resources is based on 3 months time horizon. Increasing NovaGold Resources' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for NovaGold Resources is useful when determining the fair value of the NovaGold stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of NovaGold Resources. Since NovaGold Resources is currently traded on the exchange, buyers and sellers on that exchange determine the market value of NovaGold Stock. However, NovaGold Resources' 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 2.85 | Real 4.44 | Target 9.67 | Hype 2.85 | Naive 2.61 |
The real value of NovaGold Stock, also known as its intrinsic value, is the underlying worth of NovaGold Resources Company, which is reflected in its stock price. It is based on NovaGold Resources' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of NovaGold Resources' 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 NovaGold Resources' 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 NovaGold Resources helps investors to forecast how NovaGold 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 NovaGold Resources more accurately as focusing exclusively on NovaGold Resources' 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 NovaGold Resources' intrinsic value based on its ongoing forecasts of NovaGold Resources' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against NovaGold Resources' closest peers. When choosing an evaluation method for NovaGold Resources, 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.
NovaGold Resources Investments |
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NovaGold Valuation Drivers Correlation
Many accounts on the financial statements of NovaGold Resources are highly interrelated and sometimes correlated. Consequently, when conducting NovaGold's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of NovaGold
Click cells to compare fundamentals
NovaGold Valuation Trend
Knowing NovaGold Resources' actual value is paramount for traders to make sound investment determinations. NovaGold Resources' real value is not only important for the investor to make better decisions but also for a more accurate overall view of NovaGold Resources' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both NovaGold Resources' 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.
NovaGold Market Cap
NovaGold Resources is regarded third in market capitalization category among related companies. Market capitalization of Materials industry is now estimated at about 9.99 Billion. NovaGold Resources holds roughly 979.71 Million in market capitalization claiming about 10% of all equities under Materials industry.NovaGold Resources Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining NovaGold Resources's current stock value. Our valuation model uses many indicators to compare NovaGold Resources value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across NovaGold Resources competition to find correlations between indicators driving NovaGold Resources's intrinsic value. More Info.NovaGold Resources is regarded third in price to earning category among related companies. It is considered to be number one stock in price to book category among related companies . The NovaGold Resources' current Price To Book Ratio is estimated to increase to -145.88. Comparative valuation analysis is a catch-all model that can be used if you cannot value NovaGold Resources by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for NovaGold Resources' 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 NovaGold Resources' 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 NovaGold Resources' 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 NovaGold Resources and how it compares across the competition.
About NovaGold Resources Valuation
The stock valuation mechanism determines the current worth of NovaGold Resources on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of NovaGold Resources. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of NovaGold Resources based exclusively on its fundamental and basic technical indicators. By analyzing NovaGold Resources'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 NovaGold Resources'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 NovaGold Resources. We calculate exposure to NovaGold Resources's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to NovaGold Resources's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | -9 K | -9.4 K | |
| Pretax Profit Margin | (566.52) | (538.19) | |
| Operating Profit Margin | (261.44) | (248.37) | |
| Net Loss | (439.22) | (417.26) | |
| Gross Profit Margin | 0.51 | 0.54 |
8 Steps to conduct NovaGold Resources' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates NovaGold Resources' 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 NovaGold Resources' valuation analysis, follow these 8 steps:- Gather financial information: Obtain NovaGold Resources' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine NovaGold Resources' revenue streams: Identify NovaGold Resources' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research NovaGold Resources' industry and market trends, including the size of the market, growth rate, and competition.
- Establish NovaGold Resources' growth potential: Evaluate NovaGold Resources' management, business model, and growth potential.
- Determine NovaGold Resources' 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 NovaGold Resources' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
NovaGold Resources 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 NovaGold Resources 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 | 334.1 M |
NovaGold Resources Current Valuation Indicators
Valuation refers to the process of determining the present value of NovaGold Resources and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value NovaGold we look at many different elements of the entity such as NovaGold's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. NovaGold Resources' 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 NovaGold Resources' 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 NovaGold Resources, 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 NovaGold Resources' 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 NovaGold Resources' worth.When determining whether NovaGold Resources is a strong investment it is important to analyze NovaGold Resources' 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 NovaGold Resources' future performance. For an informed investment choice regarding NovaGold Stock, refer to the following important reports: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in NovaGold Resources. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in price. For more detail on how to invest in NovaGold Stock please use our How to Invest in NovaGold Resources guide.Note that the NovaGold Resources information on this page should be used as a complementary analysis to other NovaGold Resources' 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Complementary Tools for NovaGold Stock analysis
When running NovaGold Resources' price analysis, check to measure NovaGold Resources' 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 NovaGold Resources is operating at the current time. Most of NovaGold Resources' value examination focuses on studying past and present price action to predict the probability of NovaGold Resources' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NovaGold Resources' price. Additionally, you may evaluate how the addition of NovaGold Resources to your portfolios can decrease your overall portfolio volatility.
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Is NovaGold Resources' 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 NovaGold Resources. If investors know NovaGold 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 NovaGold Resources listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.14) | Return On Assets (0.10) | Return On Equity (17.91) |
The market value of NovaGold Resources is measured differently than its book value, which is the value of NovaGold that is recorded on the company's balance sheet. Investors also form their own opinion of NovaGold Resources' value that differs from its market value or its book value, called intrinsic value, which is NovaGold Resources' 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 NovaGold Resources' market value can be influenced by many factors that don't directly affect NovaGold Resources' 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 NovaGold Resources' value and its price as these two are different measures arrived at by different means. Investors typically determine if NovaGold Resources is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NovaGold Resources' 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.