Knife River Valuation
| KNF Stock | 77.71 1.55 2.04% |
At this time, the firm appears to be overvalued. Knife River secures a last-minute Real Value of USD71.19 per share. The latest price of the firm is USD77.71. Our model forecasts the value of Knife River from analyzing the firm fundamentals such as Return On Equity of 0.16, profit margin of 0.06 %, and Current Valuation of 5.03 B 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 Knife River's valuation include:
Price Book 3.642 | Enterprise Value 5 B | Enterprise Value Ebitda 11.8792 | Price Sales 1.6291 | Forward PE 23.8095 |
Overvalued
Today
Please note that Knife River's price fluctuation is very steady at this time. Calculation of the real value of Knife River is based on 3 months time horizon. Increasing Knife River's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Knife River is useful when determining the fair value of the Knife stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Knife River. Since Knife River is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Knife Stock. However, Knife River'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 77.71 | Real 71.19 | Target 62.67 | Hype 76.96 |
The real value of Knife Stock, also known as its intrinsic value, is the underlying worth of Knife River Company, which is reflected in its stock price. It is based on Knife River's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Knife River'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 Knife River'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 Knife River helps investors to forecast how Knife 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 Knife River more accurately as focusing exclusively on Knife River'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 Knife River's intrinsic value based on its ongoing forecasts of Knife River's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Knife River's closest peers. When choosing an evaluation method for Knife River, 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.
Knife River Investments |
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Knife Valuation Trend
Knowing Knife River's actual value is paramount for traders to make sound investment determinations. Knife River's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Knife River's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Knife River'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.
Knife Market Cap
Knife River is rated fourth overall in market capitalization category among related companies. Market capitalization of Materials industry is now estimated at about 87.43 Billion. Knife River holds roughly 4.31 Billion in market capitalization claiming about 5% of all equities under Materials industry.Knife River Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Knife River's current stock value. Our valuation model uses many indicators to compare Knife River value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Knife River competition to find correlations between indicators driving Knife River's intrinsic value. More Info.Knife River is rated third overall in price to book category among related companies. It is rated fourth overall in price to sales category among related companies fabricating about 0.45 of Price To Sales per Price To Book. The ratio of Price To Book to Price To Sales for Knife River is roughly 2.24 . At this time, Knife River's Price To Sales Ratio is most likely to slightly decrease in the upcoming years.Comparative valuation analysis is a catch-all model that can be used if you cannot value Knife River by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Knife River'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 Knife River'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 Knife River'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 Knife River and how it compares across the competition.
About Knife River Valuation
The stock valuation mechanism determines the current worth of Knife River on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Knife River. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Knife River based exclusively on its fundamental and basic technical indicators. By analyzing Knife River'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 Knife River'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 Knife River. We calculate exposure to Knife River's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Knife River's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 538.9 M | 441 M | |
| Pretax Profit Margin | 0.09 | 0.08 | |
| Operating Profit Margin | 0.10 | 0.1 | |
| Net Profit Margin | 0.06 | 0.06 | |
| Gross Profit Margin | 0.19 | 0.13 |
Knife River Quarterly Retained Earnings |
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8 Steps to conduct Knife River's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Knife River'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 Knife River's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Knife River's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Knife River's revenue streams: Identify Knife River's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Knife River's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Knife River's growth potential: Evaluate Knife River's management, business model, and growth potential.
- Determine Knife River'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 Knife River's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Knife River 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 Knife River 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 | 56.7 M | |
| Quarterly Earnings Growth Y O Y | 0.18 | |
| Forward Price Earnings | 23.8095 |
Knife River Current Valuation Indicators
Valuation refers to the process of determining the present value of Knife River and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Knife we look at many different elements of the entity such as Knife's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Knife River'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 Knife River'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 Knife River, 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 Knife River'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 Knife River's worth.When determining whether Knife River is a strong investment it is important to analyze Knife River's 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 Knife River's future performance. For an informed investment choice regarding Knife Stock, refer to the following important reports: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Knife River. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. For more detail on how to invest in Knife Stock please use our How to Invest in Knife River guide.You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Complementary Tools for Knife Stock analysis
When running Knife River's price analysis, check to measure Knife River'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 Knife River is operating at the current time. Most of Knife River's value examination focuses on studying past and present price action to predict the probability of Knife River's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Knife River's price. Additionally, you may evaluate how the addition of Knife River to your portfolios can decrease your overall portfolio volatility.
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Is Knife River'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 Knife River. If investors know Knife 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 Knife River 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 0.18 | Earnings Share 3.23 | Revenue Per Share 50.034 | Quarterly Revenue Growth 0.203 | Return On Assets 0.0793 |
The market value of Knife River is measured differently than its book value, which is the value of Knife that is recorded on the company's balance sheet. Investors also form their own opinion of Knife River's value that differs from its market value or its book value, called intrinsic value, which is Knife River'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 Knife River's market value can be influenced by many factors that don't directly affect Knife River'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 Knife River's value and its price as these two are different measures arrived at by different means. Investors typically determine if Knife River is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Knife River'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.