EDP Energias Valuation
| EDP Stock | EUR 3.64 0.05 1.39% |
At this time, the firm appears to be overvalued. EDP Energias shows a prevailing Real Value of €3.15 per share. The current price of the firm is €3.64. Our model computes the value of EDP Energias from examining the firm fundamentals such as Operating Margin of 0.06 %, current valuation of 37.96 B, and Profit Margin of 0.03 % as well as evaluating its technical indicators and probability of bankruptcy. In general, most investors advise acquiring undervalued instruments and selling overvalued instruments since, in the future, asset prices and their ongoing real values will submerge.
Overvalued
Today
Please note that EDP Energias' price fluctuation is slightly risky at this time. Calculation of the real value of EDP Energias is based on 3 months time horizon. Increasing EDP Energias' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for EDP Energias is useful when determining the fair value of the EDP stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of EDP Energias. Since EDP Energias is currently traded on the exchange, buyers and sellers on that exchange determine the market value of EDP Stock. However, EDP Energias' 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 3.64 | Real 3.15 | Hype 3.64 | Naive 3.71 |
The real value of EDP Stock, also known as its intrinsic value, is the underlying worth of EDP Energias Company, which is reflected in its stock price. It is based on EDP Energias' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of EDP Energias' 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 EDP Energias' 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 EDP Energias helps investors to forecast how EDP 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 EDP Energias more accurately as focusing exclusively on EDP Energias' fundamentals will not take into account other important factors: EDP Energias Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining EDP Energias's current stock value. Our valuation model uses many indicators to compare EDP Energias value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across EDP Energias competition to find correlations between indicators driving EDP Energias's intrinsic value. More Info.EDP Energias is one of the top stocks in price to earning category among related companies. It is one of the top stocks in price to book category among related companies fabricating about 0.13 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for EDP Energias is roughly 7.83 . Comparative valuation analysis is a catch-all model that can be used if you cannot value EDP Energias by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for EDP Energias' 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 EDP Energias' 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 EDP Energias' 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 EDP Energias and how it compares across the competition.
About EDP Energias Valuation
The stock valuation mechanism determines the current worth of EDP Energias on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of EDP Energias. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of EDP Energias based exclusively on its fundamental and basic technical indicators. By analyzing EDP Energias'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 EDP Energias'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 EDP Energias. We calculate exposure to EDP Energias's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to EDP Energias's related companies.EDP - Energias de Portugal, S.A. engages in the generation, transportation, distribution, and supply of electricity in Portugal, Spain, France, Brazil, the United States, and internationally. The company was incorporated in 1976 and is headquartered in Lisbon, Portugal. EDP operates under Diversified Utilities classification in Exotistan and is traded on Commodity Exchange. It employs 12147 people.
8 Steps to conduct EDP Energias' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates EDP Energias' 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 EDP Energias' valuation analysis, follow these 8 steps:- Gather financial information: Obtain EDP Energias' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine EDP Energias' revenue streams: Identify EDP Energias' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research EDP Energias' industry and market trends, including the size of the market, growth rate, and competition.
- Establish EDP Energias' growth potential: Evaluate EDP Energias' management, business model, and growth potential.
- Determine EDP Energias' 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 EDP Energias' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in EDP Energias. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Complementary Tools for EDP Stock analysis
When running EDP Energias' price analysis, check to measure EDP Energias' 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 EDP Energias is operating at the current time. Most of EDP Energias' value examination focuses on studying past and present price action to predict the probability of EDP Energias' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move EDP Energias' price. Additionally, you may evaluate how the addition of EDP Energias to your portfolios can decrease your overall portfolio volatility.
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