Builders FirstSource Valuation
| BLDR Stock | USD 143.48 3.47 2.36% |
At this time, the firm appears to be undervalued. Builders FirstSource shows a prevailing Real Value of $152.28 per share. The current price of the firm is $143.48. Our model approximates the value of Builders FirstSource from analyzing the firm fundamentals such as Profit Margin of 0.09 %, return on equity of 0.3, and Current Valuation of 21.4 B as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Builders FirstSource's valuation include:
Price Book 4.8837 | Enterprise Value 21.4 B | Enterprise Value Ebitda 9.7852 | Price Sales 1.3517 | Forward PE 14.3678 |
Undervalued
Today
Please note that Builders FirstSource's price fluctuation is very steady at this time. Calculation of the real value of Builders FirstSource is based on 3 months time horizon. Increasing Builders FirstSource's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Builders stock is determined by what a typical buyer is willing to pay for full or partial control of Builders FirstSource. Since Builders FirstSource is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Builders Stock. However, Builders FirstSource'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 143.48 | Real 152.28 | Target 171.13 | Hype 139.52 | Naive 145.36 |
The intrinsic value of Builders FirstSource'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 Builders FirstSource'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.
Estimating the potential upside or downside of Builders FirstSource helps investors to forecast how Builders 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 Builders FirstSource more accurately as focusing exclusively on Builders FirstSource's 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 Builders FirstSource's intrinsic value based on its ongoing forecasts of Builders FirstSource's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Builders FirstSource's closest peers.
Builders FirstSource Investments |
|
Builders Valuation Trend
Knowing Builders FirstSource's actual value is paramount for traders to make sound investment determinations. Builders FirstSource's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Builders FirstSource's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Builders FirstSource's 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.
Builders Market Cap
Builders FirstSource is number one stock in market capitalization category among its peers. Market capitalization of Industrials industry is currently estimated at about 28.39 Billion. Builders FirstSource totals roughly 17.94 Billion in market capitalization claiming about 63% of equities under Industrials industry.Builders FirstSource Total Value Analysis
Builders FirstSource is currently forecasted to have valuation of 21.4 B with market capitalization of 17.94 B, debt of 3.71 B, and cash on hands of 84.98 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Builders FirstSource fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
| 21.4 B | 17.94 B | 3.71 B | 84.98 M |
Builders FirstSource Investor Information
About 95.0% of the company shares are held by institutions such as insurance companies. The book value of Builders FirstSource was currently reported as 40.61. The company has Price/Earnings To Growth (PEG) ratio of 0.81. Builders FirstSource recorded earning per share (EPS) of 11.63. The entity had not issued any dividends in recent years. The firm had 1086:995 split on the 17th of December 2009. Builders FirstSource, Inc., together with its subsidiaries, manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. Builders FirstSource, Inc. was founded in 1998 and is based in Dallas, Texas. Builders Firstsource operates under Building Products Equipment classification in the United States and is traded on New York Stock Exchange. It employs 28000 people. For more info on Builders FirstSource please contact Floyd Sherman at 214 880 3500 or go to https://www.bldr.com.Builders FirstSource Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Builders FirstSource has an asset utilization ratio of 159.05 percent. This connotes that the Company is making $1.59 for each dollar of assets. An increasing asset utilization means that Builders FirstSource is more efficient with each dollar of assets it utilizes for everyday operations.Builders FirstSource Ownership Allocation
Builders FirstSource holds a total of 122.06 Million outstanding shares. The majority of Builders FirstSource outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Builders FirstSource to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Builders FirstSource. Please pay attention to any change in the institutional holdings of Builders FirstSource as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Builders FirstSource Profitability Analysis
The company reported the previous year's revenue of 17.1 B. Net Income was 1.54 B with profit before overhead, payroll, taxes, and interest of 7.74 B.About Builders FirstSource Valuation
The stock valuation mechanism determines the current worth of Builders FirstSource on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Builders FirstSource. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Builders FirstSource based exclusively on its fundamental and basic technical indicators. By analyzing Builders FirstSource'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 Builders FirstSource'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 Builders FirstSource. We calculate exposure to Builders FirstSource's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Builders FirstSource's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 5.9 B | 6.1 B | |
| Pretax Profit Margin | 0.12 | 0.12 | |
| Operating Profit Margin | 0.13 | 0.13 | |
| Net Profit Margin | 0.09 | 0.09 | |
| Gross Profit Margin | 0.34 | 0.20 |
8 Steps to conduct Builders FirstSource's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Builders FirstSource'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 Builders FirstSource's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Builders FirstSource's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Builders FirstSource's revenue streams: Identify Builders FirstSource's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Builders FirstSource's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Builders FirstSource's growth potential: Evaluate Builders FirstSource's management, business model, and growth potential.
- Determine Builders FirstSource'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 Builders FirstSource's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Builders FirstSource Growth Indicators
Investing in growth stocks can be very risky. If the company such as Builders FirstSource 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 | 129 M | |
| Quarterly Earnings Growth Y O Y | -0.129 | |
| Forward Price Earnings | 14.3678 |
Builders FirstSource Current Valuation Indicators
Valuation refers to the process of determining the present value of Builders FirstSource and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Builders we look at many different elements of the entity such as Builders's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Builders FirstSource'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 Builders FirstSource'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 Builders FirstSource, 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 Builders FirstSource'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 Builders FirstSource's worth.Additional Tools for Builders Stock Analysis
When running Builders FirstSource's price analysis, check to measure Builders FirstSource's 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 Builders FirstSource is operating at the current time. Most of Builders FirstSource's value examination focuses on studying past and present price action to predict the probability of Builders FirstSource's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Builders FirstSource's price. Additionally, you may evaluate how the addition of Builders FirstSource to your portfolios can decrease your overall portfolio volatility.