Carters Valuation

CRI Stock  USD 71.32  0.68  0.94%   
At this time, the firm appears to be overvalued. Carters shows a prevailing Real Value of $51.35 per share. The current price of the firm is $71.32. Our model approximates the value of Carters from analyzing the firm fundamentals such as Return On Equity of 0.28, current valuation of 3.36 B, and Profit Margin of 0.08 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor purchasing undervalued instruments and trading away overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting Carters' valuation include:
Price Book
3.1681
Enterprise Value
3.4 B
Enterprise Value Ebitda
8.5128
Price Sales
0.9091
Forward PE
11.7925
Overvalued
Today
71.32
Please note that Carters' price fluctuation is very steady at this time. Calculation of the real value of Carters is based on 3 months time horizon. Increasing Carters' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Carters is useful when determining the fair value of the Carters stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Carters. Since Carters is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Carters Stock. However, Carters' 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  71.32 Real  51.35 Target  70.14 Hype  71.32 Naive  69.54
The real value of Carters Stock, also known as its intrinsic value, is the underlying worth of Carters Company, which is reflected in its stock price. It is based on Carters' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Carters' 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 Carters' 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.
51.35
Real Value
78.45
Upside
Estimating the potential upside or downside of Carters helps investors to forecast how Carters 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 Carters more accurately as focusing exclusively on Carters' fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.600.750.98
Details
Hype
Prediction
LowEstimatedHigh
69.7271.3272.92
Details
Potential
Annual Dividend
LowForecastedHigh
1.681.751.82
Details
8 Analysts
Consensus
LowTarget PriceHigh
63.8370.1477.86
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Carters' intrinsic value based on its ongoing forecasts of Carters' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Carters' closest peers. When choosing an evaluation method for Carters, 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.

Carters Investments

(58.77 Million)

Carters Valuation Trend

Knowing Carters' actual value is paramount for traders to make sound investment determinations. Carters' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Carters' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Carters' 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.

Carters Market Cap

Carters is rated second in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is currently estimated at about 7.42 Billion. Carters totals roughly 2.64 Billion in market capitalization claiming about 36% of stocks in Consumer Discretionary industry.
Capitalization  Total debt  Valuation  Workforce  Revenue

Carters Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Carters's current stock value. Our valuation model uses many indicators to compare Carters value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Carters competition to find correlations between indicators driving Carters's intrinsic value. More Info.
Carters is rated second in price to earning category among related companies. It is rated second in price to book category among related companies fabricating about  0.27  of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Carters is roughly  3.68 . The Carters' current Price To Book Ratio is estimated to increase to 5.20. Comparative valuation analysis is a catch-all model that can be used if you cannot value Carters by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Carters' 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 Carters' 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 Carters' 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 Carters and how it compares across the competition.

About Carters Valuation

The stock valuation mechanism determines the current worth of Carters on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Carters. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Carters based exclusively on its fundamental and basic technical indicators. By analyzing Carters'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 Carters'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 Carters. We calculate exposure to Carters's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Carters's related companies.
Last ReportedProjected for Next Year
Gross Profit1.4 B903.3 M
Pretax Profit Margin 0.09  0.06 
Operating Profit Margin 0.11  0.08 
Net Profit Margin 0.07  0.04 
Gross Profit Margin 0.41  0.31 

8 Steps to conduct Carters' Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Carters' 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 Carters' valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Carters' financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Carters' revenue streams: Identify Carters' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Carters' industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Carters' growth potential: Evaluate Carters' management, business model, and growth potential.
  • Determine Carters' 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 Carters' 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.
Carters' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Carters' value is low or high relative to the company's performance and growth projections. Determining the market value of Carters can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Carters represents a small ownership stake in the entity. As a stockholder of Carters, 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.

Carters Dividends Analysis For Valuation

The Carters' current Dividend Payout Ratio is estimated to increase to 0.45, while Dividends Paid is forecasted to increase to (106.4 M). . As of now, Carters' Earnings Yield is increasing as compared to previous years. The Carters' current Price Earnings Ratio is estimated to increase to 10.95, while Retained Earnings are projected to decrease to under 528.5 M.
Last ReportedProjected for Next Year
Dividends Paid-112 M-106.4 M
Dividend Yield 0.05  0.05 
Dividend Payout Ratio 0.43  0.45 
Dividend Paid And Capex Coverage Ratio 1.02  0.97 
There are various types of dividends Carters 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 Carters 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 Carters directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Carters pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Carters by the value of the dividends paid out.

Carters 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 Carters 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 Outstanding36.6 M
Quarterly Earnings Growth Y O Y0.378
Forward Price Earnings11.7925

Carters Current Valuation Indicators

Valuation refers to the process of determining the present value of Carters and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Carters we look at many different elements of the entity such as Carters's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Carters' 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 Carters' 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 Carters, 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 Carters' 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 Carters' worth.
When determining whether Carters offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Carters' 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 Carters Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Carters Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Carters. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area.
For more detail on how to invest in Carters Stock please use our How to Invest in Carters guide.
You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.

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When running Carters' price analysis, check to measure Carters' 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 Carters is operating at the current time. Most of Carters' value examination focuses on studying past and present price action to predict the probability of Carters' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Carters' price. Additionally, you may evaluate how the addition of Carters to your portfolios can decrease your overall portfolio volatility.
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Is Carters' 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 Carters. If investors know Carters 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 Carters 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
0.378
Dividend Share
3
Earnings Share
6.24
Revenue Per Share
80.503
Quarterly Revenue Growth
(0.06)
The market value of Carters is measured differently than its book value, which is the value of Carters that is recorded on the company's balance sheet. Investors also form their own opinion of Carters' value that differs from its market value or its book value, called intrinsic value, which is Carters' 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 Carters' market value can be influenced by many factors that don't directly affect Carters' 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 Carters' value and its price as these two are different measures arrived at by different means. Investors typically determine if Carters is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Carters' 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.