Ormat Technologies Valuation
| ORA Stock | USD 70.65 0.36 0.51% |
At this time, the company appears to be fairly valued. Ormat Technologies holds a recent Real Value of $68.03 per share. The prevailing price of the company is $70.65. Our model determines the value of Ormat Technologies from analyzing the company fundamentals such as Operating Margin of 0.23 %, shares outstanding of 60.38 M, and Return On Equity of 0.058 as well as examining its technical indicators and probability of bankruptcy. In general, most investors support taking in undervalued entities and trading overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
Fairly Valued
Today
Please note that Ormat Technologies' price fluctuation is very steady at this time. Calculation of the real value of Ormat Technologies is based on 3 months time horizon. Increasing Ormat Technologies' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Ormat Technologies is useful when determining the fair value of the Ormat stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Ormat Technologies. Since Ormat Technologies is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Ormat Stock. However, Ormat Technologies' 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 70.65 | Real 68.03 | Hype 70.86 | Naive 72.01 |
The real value of Ormat Stock, also known as its intrinsic value, is the underlying worth of Ormat Technologies Company, which is reflected in its stock price. It is based on Ormat Technologies' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Ormat Technologies' 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 Ormat Technologies' 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 Ormat Technologies helps investors to forecast how Ormat 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 Ormat Technologies more accurately as focusing exclusively on Ormat Technologies' fundamentals will not take into account other important factors: Ormat Technologies Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Ormat Technologies's current stock value. Our valuation model uses many indicators to compare Ormat Technologies value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Ormat Technologies competition to find correlations between indicators driving Ormat Technologies's intrinsic value. More Info.Ormat Technologies is considered to be number one stock in price to earning category among related companies. It is considered to be number one stock 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 Ormat Technologies is roughly 32.69 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Ormat Technologies by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Ormat Technologies' 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 Ormat Technologies' 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 Ormat Technologies' 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 Ormat Technologies and how it compares across the competition.
About Ormat Technologies Valuation
The stock valuation mechanism determines the current worth of Ormat Technologies on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Ormat Technologies. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Ormat Technologies based exclusively on its fundamental and basic technical indicators. By analyzing Ormat Technologies'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 Ormat Technologies'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 Ormat Technologies. We calculate exposure to Ormat Technologies's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Ormat Technologies's related companies.Ormat Technologies, Inc. engages in the geothermal and recovered energy power business in the United States, Indonesia, Kenya, Turkey, Chile, Guadeloupe, Guatemala, Ethiopia, New Zealand, Honduras, and internationally. Ormat Technologies, Inc. was founded in 1965 and is based in Reno, Nevada. Ormat Technologies operates under UtilitiesRenewable classification in the United States and is traded on New York Stock Exchange. It employs 1385 people.
8 Steps to conduct Ormat Technologies' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Ormat Technologies' 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 Ormat Technologies' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Ormat Technologies' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Ormat Technologies' revenue streams: Identify Ormat Technologies' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Ormat Technologies' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Ormat Technologies' growth potential: Evaluate Ormat Technologies' management, business model, and growth potential.
- Determine Ormat Technologies' 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 Ormat Technologies' 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 Ormat Technologies represents a small ownership stake in the entity. As a stockholder of Ormat, 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.
Ormat Technologies Dividends Analysis For Valuation
There are various types of dividends Ormat Technologies 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 Ormat 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 Ormat Technologies directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Ormat pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Ormat Technologies by the value of the dividends paid out.
Ormat Technologies 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 Ormat Technologies 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 | 59.8 M | |
| Quarterly Earnings Growth Y O Y | 0.253 | |
| Forward Price Earnings | 30.4878 |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Ormat Technologies. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area. For information on how to trade Ormat Stock refer to our How to Trade Ormat Stock guide.You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Complementary Tools for Ormat Stock analysis
When running Ormat Technologies' price analysis, check to measure Ormat Technologies' 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 Ormat Technologies is operating at the current time. Most of Ormat Technologies' value examination focuses on studying past and present price action to predict the probability of Ormat Technologies' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ormat Technologies' price. Additionally, you may evaluate how the addition of Ormat Technologies to your portfolios can decrease your overall portfolio volatility.
| Transaction History View history of all your transactions and understand their impact on performance | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |
Is Ormat Technologies' 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 Ormat Technologies. If investors know Ormat 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 Ormat Technologies 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 Ormat Technologies is measured differently than its book value, which is the value of Ormat that is recorded on the company's balance sheet. Investors also form their own opinion of Ormat Technologies' value that differs from its market value or its book value, called intrinsic value, which is Ormat Technologies' 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 Ormat Technologies' market value can be influenced by many factors that don't directly affect Ormat Technologies' 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 Ormat Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if Ormat Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ormat Technologies' 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.