Sirius XM Valuation

SIRI Stock  USD 3.90  0.04  1.04%   
At this time, the company appears to be undervalued. Sirius XM Holding has a current Real Value of $4.64 per share. The regular price of the company is $3.9. Our model measures the value of Sirius XM Holding from inspecting the company fundamentals such as Current Valuation of 24.21 B, return on asset of 0.12, and Shares Owned By Insiders of 84.80 % as well as reviewing 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 draw towards each other.
Enterprise Value
24.2 B
Enterprise Value Ebitda
9.5301
Price Sales
1.6738
Forward PE
12.7065
Trailing PE
12.0625
Undervalued
Today
3.90
Please note that Sirius XM's price fluctuation is somewhat reliable at this time. Calculation of the real value of Sirius XM Holding is based on 3 months time horizon. Increasing Sirius XM's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Sirius XM Holding is useful when determining the fair value of the Sirius stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Sirius XM. Since Sirius XM is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Sirius Stock. However, Sirius XM'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  3.9 Real  4.64 Target  4.99 Hype  3.91 Naive  3.87
The real value of Sirius Stock, also known as its intrinsic value, is the underlying worth of Sirius XM Holding Company, which is reflected in its stock price. It is based on Sirius XM's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Sirius XM'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 Sirius XM'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.
4.64
Real Value
6.15
Upside
Estimating the potential upside or downside of Sirius XM Holding helps investors to forecast how Sirius 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 Sirius XM more accurately as focusing exclusively on Sirius XM's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.060.070.07
Details
Hype
Prediction
LowEstimatedHigh
2.403.915.42
Details
Potential
Annual Dividend
LowForecastedHigh
0.060.060.07
Details
13 Analysts
Consensus
LowTarget PriceHigh
4.544.995.54
Details

Sirius XM Investments

(652.65 Million)

Sirius XM Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Sirius XM's current stock value. Our valuation model uses many indicators to compare Sirius XM value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Sirius XM competition to find correlations between indicators driving Sirius XM's intrinsic value. More Info.
Sirius XM Holding is currently regarded as top stock in annual yield category among related companies. It is currently regarded as top stock in five year return category among related companies reporting about  32.48  of Five Year Return per Annual Yield. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Sirius XM by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Sirius XM'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 Sirius XM'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 Sirius XM'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 Sirius XM and how it compares across the competition.

About Sirius XM Valuation

The stock valuation mechanism determines the current worth of Sirius XM Holding on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Sirius XM Holding. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Sirius XM Holding based exclusively on its fundamental and basic technical indicators. By analyzing Sirius XM'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 Sirius XM'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 Sirius XM. We calculate exposure to Sirius XM's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Sirius XM's related companies.
Last ReportedProjected for 2024
Gross Profit4.4 B4.6 B
Pretax Profit Margin 0.17  0.16 
Operating Profit Margin 0.22  0.23 
Net Profit Margin 0.14  0.15 
Gross Profit Margin 0.49  0.51 

8 Steps to conduct Sirius XM's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Sirius XM'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 Sirius XM's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Sirius XM's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Sirius XM's revenue streams: Identify Sirius XM's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Sirius XM's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Sirius XM's growth potential: Evaluate Sirius XM's management, business model, and growth potential.
  • Determine Sirius XM'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 Sirius XM's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Sirius XM's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Sirius XM's value is low or high relative to the company's performance and growth projections. Determining the market value of Sirius XM can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Sirius XM represents a small ownership stake in the entity. As a stockholder of Sirius, 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.

Sirius XM Dividends Analysis For Valuation

The Sirius XM's current Dividends Paid is estimated to increase to about (363.9 M). The current Dividend Yield is estimated to decrease to 0.01. As of now, Sirius XM's Price Earnings Ratio is increasing as compared to previous years. The Sirius XM's current Price Earnings To Growth Ratio is estimated to increase to 2.73, while Retained Earnings are projected to decrease to (2.7 B).
Last ReportedProjected for 2024
Dividends Paid-383 M-363.9 M
Dividend Yield 0.02  0.01 
Dividend Payout Ratio 0.30  0.29 
Dividend Paid And Capex Coverage Ratio(6.93)(6.58)
There are various types of dividends Sirius XM 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 Sirius 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 Sirius XM Holding directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Sirius pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Sirius XM by the value of the dividends paid out.

Sirius XM 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 Sirius XM 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 Outstanding3.9 B
Quarterly Earnings Growth Y O Y-0.016
Forward Price Earnings12.7065

Sirius XM Current Valuation Indicators

Valuation refers to the process of determining the present value of Sirius XM Holding and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Sirius we look at many different elements of the entity such as Sirius's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Sirius XM'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 Sirius XM'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 Sirius XM, 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 Sirius XM'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 Sirius XM's worth.
When determining whether Sirius XM Holding offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Sirius XM's 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 Sirius Xm Holding Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Sirius Xm Holding Stock:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Sirius XM Holding. 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.
You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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Is Sirius XM'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 Sirius XM. If investors know Sirius 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 Sirius XM 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
(0.02)
Dividend Share
0.099
Earnings Share
0.32
Revenue Per Share
2.321
Quarterly Revenue Growth
0.002
The market value of Sirius XM Holding is measured differently than its book value, which is the value of Sirius that is recorded on the company's balance sheet. Investors also form their own opinion of Sirius XM's value that differs from its market value or its book value, called intrinsic value, which is Sirius XM'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 Sirius XM's market value can be influenced by many factors that don't directly affect Sirius XM'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 Sirius XM's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sirius XM is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sirius XM'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.