Sitio Royalties Valuation
| STR Stock | USD 24.06 0.20 0.84% |
At this time, the company appears to be undervalued. Sitio Royalties Corp has a current Real Value of $28.0 per share. The regular price of the company is $24.06. Our model measures the value of Sitio Royalties Corp from inspecting the company fundamentals such as Operating Margin of 0.47 %, return on equity of -0.0125, and Shares Outstanding of 82.42 M as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend buying undervalued stocks and selling overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other. Key fundamental drivers impacting Sitio Royalties' valuation include:
Price Book 1.2766 | Enterprise Value 4.8 B | Enterprise Value Ebitda 8.9872 | Price Sales 6.598 | Forward PE 13.5685 |
Undervalued
Today
Please note that Sitio Royalties' price fluctuation is very steady at this time. Calculation of the real value of Sitio Royalties Corp is based on 3 months time horizon. Increasing Sitio Royalties' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Sitio Royalties Corp is useful when determining the fair value of the Sitio stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Sitio Royalties. Since Sitio Royalties is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Sitio Stock. However, Sitio Royalties' 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 24.06 | Real 28.0 | Target 32.6 | Hype 24.06 | Naive 24.28 |
The real value of Sitio Stock, also known as its intrinsic value, is the underlying worth of Sitio Royalties Corp Company, which is reflected in its stock price. It is based on Sitio Royalties' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Sitio Royalties' 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 Sitio Royalties' 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 Sitio Royalties Corp helps investors to forecast how Sitio 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 Sitio Royalties more accurately as focusing exclusively on Sitio Royalties' 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 Sitio Royalties' intrinsic value based on its ongoing forecasts of Sitio Royalties' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Sitio Royalties' closest peers. When choosing an evaluation method for Sitio Royalties 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.
Sitio Royalties Investments |
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Sitio Valuation Trend
Knowing Sitio Royalties' actual value is paramount for traders to make sound investment determinations. Sitio Royalties' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Sitio Royalties' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Sitio Royalties' 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.
Sitio Market Cap
Sitio Royalties Corp is rated second in market capitalization category among related companies. Market capitalization of Energy industry is at this time estimated at about 32.93 Billion. Sitio Royalties retains roughly 3.75 Billion in market capitalization claiming about 11% of equities under Energy industry.Sitio Royalties Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Sitio Royalties's current stock value. Our valuation model uses many indicators to compare Sitio Royalties value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Sitio Royalties competition to find correlations between indicators driving Sitio Royalties's intrinsic value. More Info.Sitio Royalties Corp is rated below average in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.05 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Sitio Royalties Corp is roughly 21.55 . As of 04/30/2024, Price To Book Ratio is likely to drop to 1.13. Comparative valuation analysis is a catch-all model that can be used if you cannot value Sitio Royalties by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Sitio Royalties' 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 Sitio Royalties' 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 Sitio Royalties' 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 Sitio Royalties and how it compares across the competition.
About Sitio Royalties Valuation
The stock valuation mechanism determines the current worth of Sitio Royalties Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Sitio Royalties Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Sitio Royalties Corp based exclusively on its fundamental and basic technical indicators. By analyzing Sitio Royalties'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 Sitio Royalties'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 Sitio Royalties. We calculate exposure to Sitio Royalties's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Sitio Royalties's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 255.1 M | 242.3 M | |
| Pretax Profit Margin | (0.10) | (0.1) | |
| Operating Profit Margin | 0.35 | 0.26 | |
| Net Loss | (0.03) | (0.03) | |
| Gross Profit Margin | 0.43 | 0.77 |
8 Steps to conduct Sitio Royalties' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Sitio Royalties' 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 Sitio Royalties' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Sitio Royalties' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Sitio Royalties' revenue streams: Identify Sitio Royalties' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Sitio Royalties' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Sitio Royalties' growth potential: Evaluate Sitio Royalties' management, business model, and growth potential.
- Determine Sitio Royalties' 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 Sitio Royalties' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Sitio Royalties represents a small ownership stake in the entity. As a stockholder of Sitio, 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.
Sitio Royalties Dividends Analysis For Valuation
As of 04/30/2024, Dividends Paid is likely to drop to about 103.1 M. In addition to that, Dividend Yield is likely to drop to 0.08. As of 04/30/2024, Retained Earnings is likely to grow to about (178.4 M). In addition to that, Earnings Yield is likely to grow to -0.0082
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 162 M | 103.1 M | |
| Dividend Yield | 0.08 | 0.08 | |
| Dividend Payout Ratio | (9.76) | (9.28) | |
| Dividend Paid And Capex Coverage Ratio | (54.16) | (51.45) |
There are various types of dividends Sitio Royalties 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 Sitio 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 Sitio Royalties Corp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Sitio pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Sitio Royalties by the value of the dividends paid out.
Sitio Royalties 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 Sitio Royalties 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 | 81.3 M | |
| Quarterly Earnings Growth Y O Y | -0.999 | |
| Forward Price Earnings | 13.5685 |
Sitio Royalties Current Valuation Indicators
Valuation refers to the process of determining the present value of Sitio Royalties Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Sitio we look at many different elements of the entity such as Sitio's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Sitio Royalties' 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 Sitio Royalties' 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 Sitio Royalties, 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 Sitio Royalties' 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 Sitio Royalties' worth.When determining whether Sitio Royalties Corp is a strong investment it is important to analyze Sitio Royalties' 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 Sitio Royalties' future performance. For an informed investment choice regarding Sitio Stock, refer to the following important reports: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Sitio Royalties 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 estimate. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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When running Sitio Royalties' price analysis, check to measure Sitio Royalties' 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 Sitio Royalties is operating at the current time. Most of Sitio Royalties' value examination focuses on studying past and present price action to predict the probability of Sitio Royalties' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sitio Royalties' price. Additionally, you may evaluate how the addition of Sitio Royalties to your portfolios can decrease your overall portfolio volatility.
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Is Sitio Royalties' 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 Sitio Royalties. If investors know Sitio 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 Sitio Royalties 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 (1.00) | Dividend Share 1.9 | Earnings Share 0.17 | Revenue Per Share 7.301 | Quarterly Revenue Growth 0.494 |
The market value of Sitio Royalties Corp is measured differently than its book value, which is the value of Sitio that is recorded on the company's balance sheet. Investors also form their own opinion of Sitio Royalties' value that differs from its market value or its book value, called intrinsic value, which is Sitio Royalties' 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 Sitio Royalties' market value can be influenced by many factors that don't directly affect Sitio Royalties' 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 Sitio Royalties' value and its price as these two are different measures arrived at by different means. Investors typically determine if Sitio Royalties is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sitio Royalties' 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.