MP Materials Valuation
| MP Stock | USD 18.25 0.17 0.94% |
At this time, the firm appears to be overvalued. MP Materials Corp owns a latest Real Value of $14.27 per share. The recent price of the firm is $18.25. Our model forecasts the value of MP Materials Corp from analyzing the firm fundamentals such as Return On Asset of -0.0165, shares owned by insiders of 26.19 %, and Profit Margin of 0.02 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend buying undervalued equities and selling overvalued equities since, sooner or later, asset prices and their ongoing real values will come together. Key fundamental drivers impacting MP Materials' valuation include:
Price Book 2.044 | Enterprise Value 3 B | Enterprise Value Ebitda 26.4006 | Price Sales 11.015 | Forward PE 34.6021 |
Overvalued
Today
Please note that MP Materials' price fluctuation is somewhat reliable at this time. Calculation of the real value of MP Materials Corp is based on 3 months time horizon. Increasing MP Materials' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for MP Materials Corp is useful when determining the fair value of the MP Materials stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of MP Materials. Since MP Materials is currently traded on the exchange, buyers and sellers on that exchange determine the market value of MP Materials Stock. However, MP Materials' 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 18.25 | Real 14.27 | Target 31.8 | Hype 18.25 | Naive 20.66 |
The real value of MP Materials Stock, also known as its intrinsic value, is the underlying worth of MP Materials Corp Company, which is reflected in its stock price. It is based on MP Materials' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of MP Materials' 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 MP Materials' 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 MP Materials Corp helps investors to forecast how MP Materials 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 MP Materials more accurately as focusing exclusively on MP Materials' 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 MP Materials' intrinsic value based on its ongoing forecasts of MP Materials' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against MP Materials' closest peers. When choosing an evaluation method for MP Materials Corp, 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.
MP Materials Investments |
|
MP Materials Valuation Trend
Knowing MP Materials' actual value is paramount for traders to make sound investment determinations. MP Materials' real value is not only important for the investor to make better decisions but also for a more accurate overall view of MP Materials' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both MP Materials' 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.
MP Materials Market Cap
MP Materials Corp is considered to be number one stock in market capitalization category among related companies. Market capitalization of Materials industry is now estimated at about 6.67 Billion. MP Materials totals roughly 3.02 Billion in market capitalization claiming about 45% of all equities under Materials industry.MP Materials Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining MP Materials's current stock value. Our valuation model uses many indicators to compare MP Materials value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across MP Materials competition to find correlations between indicators driving MP Materials's intrinsic value. More Info.MP Materials Corp is considered to be number one stock in price to earning category among related companies. It is regarded third in price to book category among related companies fabricating about 0.09 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for MP Materials Corp is roughly 11.71 . As of 05/20/2024, Price To Book Ratio is likely to grow to 2.70. Comparative valuation analysis is a catch-all model that can be used if you cannot value MP Materials by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for MP Materials' 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 MP Materials' 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 MP Materials' 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 MP Materials and how it compares across the competition.
About MP Materials Valuation
The stock valuation mechanism determines the current worth of MP Materials Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of MP Materials Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of MP Materials Corp based exclusively on its fundamental and basic technical indicators. By analyzing MP Materials'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 MP Materials'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 MP Materials. We calculate exposure to MP Materials's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to MP Materials's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 105 M | 174 M | |
| Pretax Profit Margin | 0.13 | 0.14 | |
| Operating Profit Margin | 0.09 | 0.08 | |
| Net Profit Margin | 0.1 | 0.13 | |
| Gross Profit Margin | 0.41 | 0.35 |
8 Steps to conduct MP Materials' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates MP Materials' 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 MP Materials' valuation analysis, follow these 8 steps:- Gather financial information: Obtain MP Materials' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine MP Materials' revenue streams: Identify MP Materials' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research MP Materials' industry and market trends, including the size of the market, growth rate, and competition.
- Establish MP Materials' growth potential: Evaluate MP Materials' management, business model, and growth potential.
- Determine MP Materials' 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 MP Materials' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
MP Materials 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 MP Materials 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 | 178.2 M | |
| Quarterly Earnings Growth Y O Y | -0.556 | |
| Forward Price Earnings | 34.6021 |
MP Materials Current Valuation Indicators
Valuation refers to the process of determining the present value of MP Materials Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value MP Materials we look at many different elements of the entity such as MP Materials's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. MP Materials' 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 MP Materials' 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 MP Materials, 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 MP Materials' 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 MP Materials' worth.When determining whether MP Materials Corp is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if MP Materials Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Mp Materials Corp Stock. Highlighted below are key reports to facilitate an investment decision about Mp Materials Corp Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in MP Materials Corp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in american community survey. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Complementary Tools for MP Materials Stock analysis
When running MP Materials' price analysis, check to measure MP Materials' 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 MP Materials is operating at the current time. Most of MP Materials' value examination focuses on studying past and present price action to predict the probability of MP Materials' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move MP Materials' price. Additionally, you may evaluate how the addition of MP Materials to your portfolios can decrease your overall portfolio volatility.
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |
Is MP Materials' 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 MP Materials. If investors know MP Materials 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 MP Materials 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 (0.56) | Earnings Share (0.14) | Revenue Per Share 1.169 | Quarterly Revenue Growth (0.49) | Return On Assets (0.02) |
The market value of MP Materials Corp is measured differently than its book value, which is the value of MP Materials that is recorded on the company's balance sheet. Investors also form their own opinion of MP Materials' value that differs from its market value or its book value, called intrinsic value, which is MP Materials' 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 MP Materials' market value can be influenced by many factors that don't directly affect MP Materials' 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 MP Materials' value and its price as these two are different measures arrived at by different means. Investors typically determine if MP Materials is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, MP Materials' 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.