Enterprise Bancorp Valuation
| EBTC Stock | USD 24.80 0.37 1.51% |
At this time, the firm appears to be fairly valued. Enterprise Bancorp shows a prevailing Real Value of $25.66 per share. The current price of the firm is $24.8. Our model computes the value of Enterprise Bancorp from reviewing the firm fundamentals such as Current Valuation of 348.42 M, profit margin of 0.24 %, and Shares Outstanding of 12.28 M as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise purchasing undervalued instruments and exiting overvalued instruments since, at some point, asset prices and their ongoing real values will submerge. Key fundamental drivers impacting Enterprise Bancorp's valuation include:
Price Book 0.8726 | Enterprise Value 348.4 M | Price Sales 1.7789 | Trailing PE 7.8553 |
Fairly Valued
Today
Please note that Enterprise Bancorp's price fluctuation is very steady at this time. Calculation of the real value of Enterprise Bancorp is based on 3 months time horizon. Increasing Enterprise Bancorp's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Enterprise Bancorp is useful when determining the fair value of the Enterprise stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Enterprise Bancorp. Since Enterprise Bancorp is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Enterprise Stock. However, Enterprise Bancorp'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 24.8 | Real 25.66 | Hype 24.86 |
The real value of Enterprise Stock, also known as its intrinsic value, is the underlying worth of Enterprise Bancorp Company, which is reflected in its stock price. It is based on Enterprise Bancorp's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Enterprise Bancorp'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 Enterprise Bancorp'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.
Estimating the potential upside or downside of Enterprise Bancorp helps investors to forecast how Enterprise 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 Enterprise Bancorp more accurately as focusing exclusively on Enterprise Bancorp's 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 Enterprise Bancorp's intrinsic value based on its ongoing forecasts of Enterprise Bancorp's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Enterprise Bancorp's closest peers. When choosing an evaluation method for Enterprise Bancorp, 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.
Enterprise Bancorp Investments |
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Enterprise Valuation Trend
Knowing Enterprise Bancorp's actual value is paramount for traders to make sound investment determinations. Enterprise Bancorp's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Enterprise Bancorp's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Enterprise Bancorp's 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.
Enterprise Market Cap
Enterprise Bancorp is rated # 4 in market capitalization category among related companies. Market capitalization of Financials industry is currently estimated at about 2.69 Billion. Enterprise Bancorp retains roughly 299.97 Million in market capitalization claiming about 11% of equities under Financials industry.Enterprise Bancorp Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Enterprise Bancorp's current stock value. Our valuation model uses many indicators to compare Enterprise Bancorp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Enterprise Bancorp competition to find correlations between indicators driving Enterprise Bancorp's intrinsic value. More Info.Enterprise Bancorp 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 0.09 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Enterprise Bancorp is roughly 11.46 . As of April 25, 2024, Price To Book Ratio is expected to decline to 1.14. Comparative valuation analysis is a catch-all model that can be used if you cannot value Enterprise Bancorp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Enterprise Bancorp'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 Enterprise Bancorp'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 Enterprise Bancorp'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 Enterprise Bancorp and how it compares across the competition.
About Enterprise Bancorp Valuation
The stock valuation mechanism determines the current worth of Enterprise Bancorp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Enterprise Bancorp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Enterprise Bancorp based exclusively on its fundamental and basic technical indicators. By analyzing Enterprise Bancorp'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 Enterprise Bancorp'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 Enterprise Bancorp. We calculate exposure to Enterprise Bancorp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Enterprise Bancorp's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 193 M | 202.6 M | |
| Pretax Profit Margin | 0.24 | 0.22 | |
| Operating Profit Margin | 0.24 | 0.22 | |
| Net Profit Margin | 0.17 | 0.17 | |
| Gross Profit Margin | 0.96 | 0.77 |
Enterprise Bancorp Quarterly Retained Earnings |
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8 Steps to conduct Enterprise Bancorp's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Enterprise Bancorp'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 Enterprise Bancorp's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Enterprise Bancorp's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Enterprise Bancorp's revenue streams: Identify Enterprise Bancorp's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Enterprise Bancorp's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Enterprise Bancorp's growth potential: Evaluate Enterprise Bancorp's management, business model, and growth potential.
- Determine Enterprise Bancorp'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 Enterprise Bancorp's 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 Enterprise Bancorp represents a small ownership stake in the entity. As a stockholder of Enterprise, 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.
Enterprise Bancorp Dividends Analysis For Valuation
At present, Enterprise Bancorp's Dividend Paid And Capex Coverage Ratio is projected to increase significantly based on the last few years of reporting. . At present, Enterprise Bancorp's Earnings Yield is projected to increase slightly based on the last few years of reporting.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 9.7 M | 10.2 M | |
| Dividend Yield | 0.02 | 0.01 | |
| Dividend Payout Ratio | 0.26 | 0.21 | |
| Dividend Paid And Capex Coverage Ratio | 15.43 | 16.20 |
There are various types of dividends Enterprise Bancorp 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 Enterprise 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 Enterprise Bancorp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Enterprise pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Enterprise Bancorp by the value of the dividends paid out.
Enterprise Bancorp 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 Enterprise Bancorp 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 | 12.2 M | |
| Quarterly Earnings Growth Y O Y | -0.364 |
Enterprise Bancorp Current Valuation Indicators
Valuation refers to the process of determining the present value of Enterprise Bancorp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Enterprise we look at many different elements of the entity such as Enterprise's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Enterprise Bancorp'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 Enterprise Bancorp'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 Enterprise Bancorp, 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 Enterprise Bancorp'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 Enterprise Bancorp's worth.When determining whether Enterprise Bancorp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Enterprise Bancorp'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 Enterprise Bancorp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Enterprise Bancorp Stock: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Enterprise Bancorp. 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. For information on how to trade Enterprise Stock refer to our How to Trade Enterprise Stock guide.You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Complementary Tools for Enterprise Stock analysis
When running Enterprise Bancorp's price analysis, check to measure Enterprise Bancorp'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 Enterprise Bancorp is operating at the current time. Most of Enterprise Bancorp's value examination focuses on studying past and present price action to predict the probability of Enterprise Bancorp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Enterprise Bancorp's price. Additionally, you may evaluate how the addition of Enterprise Bancorp to your portfolios can decrease your overall portfolio volatility.
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Is Enterprise Bancorp'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 Enterprise Bancorp. If investors know Enterprise 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 Enterprise Bancorp 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 (0.36) | Dividend Share 0.92 | Earnings Share 3.11 | Revenue Per Share 13.208 | Quarterly Revenue Growth (0.11) |
The market value of Enterprise Bancorp is measured differently than its book value, which is the value of Enterprise that is recorded on the company's balance sheet. Investors also form their own opinion of Enterprise Bancorp's value that differs from its market value or its book value, called intrinsic value, which is Enterprise Bancorp'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 Enterprise Bancorp's market value can be influenced by many factors that don't directly affect Enterprise Bancorp'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 Enterprise Bancorp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Enterprise Bancorp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Enterprise Bancorp'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.