Guardant Health Valuation
| GH Stock | USD 17.35 0.19 1.11% |
At this time, the firm appears to be overvalued. Guardant Health retains a regular Real Value of $14.99 per share. The prevalent price of the firm is $17.35. Our model calculates the value of Guardant Health from evaluating the firm fundamentals such as return on asset of -0.18, and Return On Equity of -4.38 as well as inspecting its technical indicators and probability of bankruptcy. In general, most investors encourage purchasing undervalued assets and trading away overvalued assets since, at some point, asset prices and their ongoing real values will come together. Key fundamental drivers impacting Guardant Health's valuation include:
Price Book 14.0057 | Enterprise Value 2.3 B | Enterprise Value Ebitda (5.56) | Price Sales 3.9409 | Enterprise Value Revenue 4.2692 |
Overvalued
Today
Please note that Guardant Health's price fluctuation is somewhat reliable at this time. Calculation of the real value of Guardant Health is based on 3 months time horizon. Increasing Guardant Health's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Guardant Health is useful when determining the fair value of the Guardant stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Guardant Health. Since Guardant Health is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Guardant Stock. However, Guardant Health'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 17.35 | Real 14.99 | Target 53.0 | Hype 17.35 | Naive 17.36 |
The real value of Guardant Stock, also known as its intrinsic value, is the underlying worth of Guardant Health Company, which is reflected in its stock price. It is based on Guardant Health's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Guardant Health'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 Guardant Health'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 Guardant Health helps investors to forecast how Guardant 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 Guardant Health more accurately as focusing exclusively on Guardant Health'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 Guardant Health's intrinsic value based on its ongoing forecasts of Guardant Health's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Guardant Health's closest peers. When choosing an evaluation method for Guardant Health, 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.
Guardant Health Investments |
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Guardant Valuation Trend
Knowing Guardant Health's actual value is paramount for traders to make sound investment determinations. Guardant Health's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Guardant Health's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Guardant Health'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.
Guardant Valuation Data Drivers
Guardant valuation ratios help to determine how cheap or expensive it is, compared to its peers or based on some benchmark measure of value for a given date. A typical valuation ratio shows the difference between the cost of Guardant equity instrument and the benefits of owning shares of Guardant Health.
View More FundamentalsGuardant Market Cap
Guardant Health is rated # 5 in market capitalization category among related companies. Market capitalization of Health Care industry is currently estimated at about 472.05 Billion. Guardant Health adds roughly 2.09 Billion in market capitalization claiming only tiny portion of equities under Health Care industry.Guardant Health Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Guardant Health's current stock value. Our valuation model uses many indicators to compare Guardant Health value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Guardant Health competition to find correlations between indicators driving Guardant Health's intrinsic value. More Info.Guardant Health is rated below average in price to earning category among related companies. It is one of the top stocks in price to book category among related companies . The current Price To Book Ratio is estimated to decrease to 13.78. Comparative valuation analysis is a catch-all model that can be used if you cannot value Guardant Health by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Guardant Health'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 Guardant Health'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 Guardant Health'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 Guardant Health and how it compares across the competition.
About Guardant Health Valuation
The stock valuation mechanism determines the current worth of Guardant Health on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Guardant Health. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Guardant Health based exclusively on its fundamental and basic technical indicators. By analyzing Guardant Health'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 Guardant Health'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 Guardant Health. We calculate exposure to Guardant Health's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Guardant Health's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 336.9 M | 177 M | |
| Pretax Profit Margin | (0.85) | (0.89) | |
| Operating Profit Margin | (1.00) | (1.05) | |
| Net Loss | (0.85) | (0.89) | |
| Gross Profit Margin | 0.60 | 0.43 |
8 Steps to conduct Guardant Health's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Guardant Health'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 Guardant Health's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Guardant Health's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Guardant Health's revenue streams: Identify Guardant Health's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Guardant Health's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Guardant Health's growth potential: Evaluate Guardant Health's management, business model, and growth potential.
- Determine Guardant Health'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 Guardant Health's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Guardant Health 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 Guardant Health 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 | 112 M |
Guardant Health Current Valuation Indicators
Valuation refers to the process of determining the present value of Guardant Health and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Guardant we look at many different elements of the entity such as Guardant's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Guardant Health'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 Guardant Health'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 Guardant Health, 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 Guardant Health'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 Guardant Health's worth.When determining whether Guardant Health offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Guardant Health'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 Guardant Health Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Guardant Health Stock: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Guardant Health. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in rate. For more detail on how to invest in Guardant Stock please use our How to Invest in Guardant Health guide.Note that the Guardant Health information on this page should be used as a complementary analysis to other Guardant Health's 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Complementary Tools for Guardant Stock analysis
When running Guardant Health's price analysis, check to measure Guardant Health'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 Guardant Health is operating at the current time. Most of Guardant Health's value examination focuses on studying past and present price action to predict the probability of Guardant Health's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Guardant Health's price. Additionally, you may evaluate how the addition of Guardant Health to your portfolios can decrease your overall portfolio volatility.
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Is Guardant Health'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 Guardant Health. If investors know Guardant 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 Guardant Health listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (4.28) | Revenue Per Share 5.036 | Quarterly Revenue Growth 0.222 | Return On Assets (0.18) | Return On Equity (4.38) |
The market value of Guardant Health is measured differently than its book value, which is the value of Guardant that is recorded on the company's balance sheet. Investors also form their own opinion of Guardant Health's value that differs from its market value or its book value, called intrinsic value, which is Guardant Health'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 Guardant Health's market value can be influenced by many factors that don't directly affect Guardant Health'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 Guardant Health's value and its price as these two are different measures arrived at by different means. Investors typically determine if Guardant Health is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Guardant Health'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.