CDK Global Holdings Valuation

CDKDelisted Stock  USD 54.76  0.00  0.00%   
At this time, the firm appears to be overvalued. CDK Global Holdings shows a prevailing Real Value of $46.28 per share. The current price of the firm is $54.76. Our model approximates the value of CDK Global Holdings from examining the firm fundamentals such as Profit Margin of 60.45 %, return on equity of 53.35, and Operating Margin of 32.81 % as well as evaluating its technical indicators and probability of bankruptcy. In general, most investors favor picking up undervalued instruments and discarding overvalued instruments since, in the future, asset prices and their ongoing real values will blend.
Overvalued
Today
54.76
Please note that CDK Global's price fluctuation is very steady at this time. Calculation of the real value of CDK Global Holdings is based on 3 months time horizon. Increasing CDK Global's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for CDK Global Holdings is useful when determining the fair value of the CDK stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of CDK Global. Since CDK Global is currently traded on the exchange, buyers and sellers on that exchange determine the market value of CDK Stock. However, CDK Global'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  54.76 Real  46.28 Hype  54.76 Naive  54.8
The real value of CDK Stock, also known as its intrinsic value, is the underlying worth of CDK Global Holdings Company, which is reflected in its stock price. It is based on CDK Global's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of CDK Global'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 CDK Global'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.
46.28
Real Value
60.24
Upside
Estimating the potential upside or downside of CDK Global Holdings helps investors to forecast how CDK 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 CDK Global more accurately as focusing exclusively on CDK Global's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
54.7654.7654.76
Details
Hype
Prediction
LowEstimatedHigh
54.7654.7654.76
Details
Potential
Annual Dividend
LowForecastedHigh
0.10.10.1
Details

CDK Global Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining CDK Global's current stock value. Our valuation model uses many indicators to compare CDK Global value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across CDK Global competition to find correlations between indicators driving CDK Global's intrinsic value. More Info.
CDK Global Holdings is number one stock in last dividend paid category among related companies. It is number one stock in price to book category among related companies fabricating about  24.47  of Price To Book per Last Dividend Paid. . Comparative valuation analysis is a catch-all model that can be used if you cannot value CDK Global by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for CDK Global'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 CDK Global'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 CDK Global'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 CDK Global and how it compares across the competition.

About CDK Global Valuation

The delisted stock valuation mechanism determines the current worth of CDK Global Holdings on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of CDK Global Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of CDK Global Holdings based exclusively on its fundamental and basic technical indicators. By analyzing CDK Global'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 CDK Global'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 CDK Global. We calculate exposure to CDK Global's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to CDK Global's related companies.
CDK Global, Inc., together with its subsidiaries, provides integrated data and technology solutions to the automotive, heavy truck, recreation, and heavy equipment industries in the United States and internationally. CDK Global, Inc. was incorporated in 2014 and is headquartered in Hoffman Estates, Illinois. CDK Global operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 6500 people.

8 Steps to conduct CDK Global's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates CDK Global'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 CDK Global's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain CDK Global's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine CDK Global's revenue streams: Identify CDK Global's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research CDK Global's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish CDK Global's growth potential: Evaluate CDK Global's management, business model, and growth potential.
  • Determine CDK Global'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 CDK Global's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
CDK Global's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether CDK Global's value is low or high relative to the company's performance and growth projections. Determining the market value of CDK Global can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of CDK Global represents a small ownership stake in the entity. As a stockholder of CDK, 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.

CDK Global Dividends Analysis For Valuation

Please note that CDK Global has scaled down on payment of dividends at this time.
There are various types of dividends CDK Global 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 CDK 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 CDK Global Holdings directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When CDK pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of CDK Global by the value of the dividends paid out.

CDK Global 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 CDK Global 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.
Shares Percent Shares Out5.42%
Earnings Quarterly Growth-6.70%
Trailing Annual Dividend Rate0.60
Revenue Growth7.50%
Forward Price Earnings16.95
Float Shares116.24M
Shares Short Prior Month2.82M
Earnings Growth-3.80%
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment.
Note that the CDK Global Holdings information on this page should be used as a complementary analysis to other CDK Global'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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

Other Consideration for investing in CDK Stock

If you are still planning to invest in CDK Global Holdings check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the CDK Global's history and understand the potential risks before investing.
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