Donaldson Valuation

DCI Stock  USD 74.68  0.24  0.32%   
At this time, the firm appears to be fairly valued. Donaldson shows a prevailing Real Value of $76.63 per share. The current price of the firm is $74.68. Our model computes the value of Donaldson from reviewing the firm fundamentals such as Profit Margin of 0.11 %, shares outstanding of 120.37 M, and Current Valuation of 9.41 B as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise purchasing undervalued instruments and trading away overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
Price Book
6.5338
Enterprise Value
9.4 B
Enterprise Value Ebitda
15.4685
Price Sales
2.5844
Forward PE
23.1481
Fairly Valued
Today
74.68
Please note that Donaldson's price fluctuation is very steady at this time. Calculation of the real value of Donaldson is based on 3 months time horizon. Increasing Donaldson's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Donaldson is useful when determining the fair value of the Donaldson stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Donaldson. Since Donaldson is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Donaldson Stock. However, Donaldson'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  74.68 Real  76.63 Target  66.25 Hype  74.68 Naive  73.31
The real value of Donaldson Stock, also known as its intrinsic value, is the underlying worth of Donaldson Company, which is reflected in its stock price. It is based on Donaldson's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Donaldson'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 Donaldson'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.
76.63
Real Value
77.83
Upside
Estimating the potential upside or downside of Donaldson helps investors to forecast how Donaldson 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 Donaldson more accurately as focusing exclusively on Donaldson's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.810.830.86
Details
Hype
Prediction
LowEstimatedHigh
73.4874.6875.88
Details
Potential
Annual Dividend
LowForecastedHigh
0.630.630.64
Details
8 Analysts
Consensus
LowTarget PriceHigh
60.2966.2573.54
Details

Donaldson Investments

(279.84 Million)

Donaldson Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Donaldson's current stock value. Our valuation model uses many indicators to compare Donaldson value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Donaldson competition to find correlations between indicators driving Donaldson's intrinsic value. More Info.
Donaldson is rated # 3 in price to book category among related companies. It is rated below average in beta category among related companies totaling about  0.17  of Beta per Price To Book. The ratio of Price To Book to Beta for Donaldson is roughly  5.97 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Donaldson by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Donaldson'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 Donaldson'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 Donaldson'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 Donaldson and how it compares across the competition.

About Donaldson Valuation

The stock valuation mechanism determines the current worth of Donaldson on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Donaldson. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Donaldson based exclusively on its fundamental and basic technical indicators. By analyzing Donaldson'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 Donaldson'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 Donaldson. We calculate exposure to Donaldson's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Donaldson's related companies.
Last ReportedProjected for 2024
Gross Profit1.3 B1.4 B
Pretax Profit Margin 0.12  0.09 
Operating Profit Margin 0.13  0.09 
Net Profit Margin 0.09  0.06 
Gross Profit Margin 0.30  0.26 

Donaldson Quarterly Retained Earnings

2.22 Billion

8 Steps to conduct Donaldson's Valuation Analysis

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

Donaldson Dividends Analysis For Valuation

The Donaldson's current Dividends Paid is estimated to increase to about 138.1 M, while Dividend Yield is projected to decrease to 0.01. . As of now, Donaldson's Retained Earnings are increasing as compared to previous years. The Donaldson's current Retained Earnings Total Equity is estimated to increase to about 2.2 B, while Price Earnings Ratio is projected to decrease to 15.90.
Last ReportedProjected for 2024
Dividends Paid131.6 M138.1 M
Dividend Yield 0.01  0.01 
Dividend Payout Ratio 0.29  0.20 
Dividend Paid And Capex Coverage Ratio(169.24)(160.77)
There are various types of dividends Donaldson 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 Donaldson 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 Donaldson directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Donaldson pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Donaldson by the value of the dividends paid out.

Donaldson 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 Donaldson 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 Outstanding123.6 M
Quarterly Earnings Growth Y O Y0.157
Forward Price Earnings23.1481

Donaldson Current Valuation Indicators

Valuation refers to the process of determining the present value of Donaldson and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Donaldson we look at many different elements of the entity such as Donaldson's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Donaldson'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 Donaldson'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 Donaldson, 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 Donaldson'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 Donaldson's worth.
When determining whether Donaldson offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Donaldson's 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 Donaldson Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Donaldson Stock:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Donaldson. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in main economic indicators.
For more detail on how to invest in Donaldson Stock please use our How to Invest in Donaldson guide.
Note that the Donaldson information on this page should be used as a complementary analysis to other Donaldson'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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

Complementary Tools for Donaldson Stock analysis

When running Donaldson's price analysis, check to measure Donaldson'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 Donaldson is operating at the current time. Most of Donaldson's value examination focuses on studying past and present price action to predict the probability of Donaldson's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Donaldson's price. Additionally, you may evaluate how the addition of Donaldson to your portfolios can decrease your overall portfolio volatility.
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Is Donaldson'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 Donaldson. If investors know Donaldson 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 Donaldson 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
0.157
Dividend Share
1
Earnings Share
3.06
Revenue Per Share
28.734
Quarterly Revenue Growth
0.058
The market value of Donaldson is measured differently than its book value, which is the value of Donaldson that is recorded on the company's balance sheet. Investors also form their own opinion of Donaldson's value that differs from its market value or its book value, called intrinsic value, which is Donaldson'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 Donaldson's market value can be influenced by many factors that don't directly affect Donaldson'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 Donaldson's value and its price as these two are different measures arrived at by different means. Investors typically determine if Donaldson is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Donaldson'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.