Lamar Advertising Valuation

LAMR Stock  USD 118.46  0.27  0.23%   
At this time, the firm appears to be overvalued. Lamar Advertising secures a last-minute Real Value of $102.81 per share. The latest price of the firm is $118.46. Our model forecasts the value of Lamar Advertising from analyzing the firm fundamentals such as Profit Margin of 0.23 %, return on equity of 0.41, and Current Valuation of 16.72 B as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend buying undervalued stocks and selling overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
Price Book
9.9676
Enterprise Value
16.7 B
Enterprise Value Ebitda
17.1594
Price Sales
5.7306
Forward PE
29.4985
Overvalued
Today
118.46
Please note that Lamar Advertising's price fluctuation is very steady at this time. Calculation of the real value of Lamar Advertising is based on 3 months time horizon. Increasing Lamar Advertising's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Lamar Advertising is useful when determining the fair value of the Lamar stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Lamar Advertising. Since Lamar Advertising is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Lamar Stock. However, Lamar Advertising'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  118.46 Real  102.81 Target  99.0 Hype  118.63 Naive  115.99
The real value of Lamar Stock, also known as its intrinsic value, is the underlying worth of Lamar Advertising Company, which is reflected in its stock price. It is based on Lamar Advertising's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Lamar Advertising'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 Lamar Advertising'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.
101.21
Downside
102.81
Real Value
130.31
Upside
Estimating the potential upside or downside of Lamar Advertising helps investors to forecast how Lamar 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 Lamar Advertising more accurately as focusing exclusively on Lamar Advertising's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.730.770.83
Details
Hype
Prediction
LowEstimatedHigh
117.03118.63120.23
Details
Potential
Annual Dividend
LowForecastedHigh
3.183.333.48
Details
4 Analysts
Consensus
LowTarget PriceHigh
90.0999.00109.89
Details

Lamar Advertising Investments

(439.41 Million)

Lamar Advertising Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Lamar Advertising's current stock value. Our valuation model uses many indicators to compare Lamar Advertising value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Lamar Advertising competition to find correlations between indicators driving Lamar Advertising's intrinsic value. More Info.
Lamar Advertising is currently regarded as number one stock in annual yield category among related companies. It is currently regarded as number one stock in five year return category among related companies reporting about  95.30  of Five Year Return per Annual Yield. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Lamar Advertising by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lamar Advertising'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 Lamar Advertising'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 Lamar Advertising'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 Lamar Advertising and how it compares across the competition.

About Lamar Advertising Valuation

The stock valuation mechanism determines the current worth of Lamar Advertising on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Lamar Advertising. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Lamar Advertising based exclusively on its fundamental and basic technical indicators. By analyzing Lamar Advertising'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 Lamar Advertising'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 Lamar Advertising. We calculate exposure to Lamar Advertising's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Lamar Advertising's related companies.
Last ReportedProjected for 2024
Gross Profit1.1 B782.3 M
Pretax Profit Margin 0.24  0.25 
Operating Profit Margin 0.32  0.34 
Net Profit Margin 0.23  0.25 
Gross Profit Margin 0.53  0.72 

8 Steps to conduct Lamar Advertising's Valuation Analysis

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

Lamar Advertising Dividends Analysis For Valuation

At this time, Lamar Advertising's Dividend Yield is relatively stable compared to the past year. As of 03/28/2024, Dividend Payout Ratio is likely to grow to 1.08, though Dividends Paid is likely to grow to (485.1 M). . As of 03/28/2024, Retained Earnings is likely to grow to about (778.3 M). In addition to that, Retained Earnings Total Equity is likely to drop to about (760.1 M)
Last ReportedProjected for 2024
Dividends Paid-510.6 M-485.1 M
Dividend Yield 0.05  0.05 
Dividend Payout Ratio 1.03  1.08 
Dividend Paid And Capex Coverage Ratio 2.36  2.48 
There are various types of dividends Lamar Advertising 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 Lamar 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 Lamar Advertising directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Lamar pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Lamar Advertising by the value of the dividends paid out.

Lamar Advertising 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 Lamar Advertising 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 Outstanding102.1 M
Quarterly Earnings Growth Y O Y1.249
Forward Price Earnings29.4985

Lamar Advertising Current Valuation Indicators

Valuation refers to the process of determining the present value of Lamar Advertising and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Lamar we look at many different elements of the entity such as Lamar's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Lamar Advertising'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 Lamar Advertising'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 Lamar Advertising, 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 Lamar Advertising'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 Lamar Advertising's worth.
When determining whether Lamar Advertising is a strong investment it is important to analyze Lamar Advertising's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Lamar Advertising's future performance. For an informed investment choice regarding Lamar Stock, refer to the following important reports:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lamar Advertising. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.
To learn how to invest in Lamar Stock, please use our How to Invest in Lamar Advertising guide.
You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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Is Lamar Advertising'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 Lamar Advertising. If investors know Lamar 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 Lamar Advertising 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
1.249
Dividend Share
5
Earnings Share
4.85
Revenue Per Share
20.748
Quarterly Revenue Growth
0.039
The market value of Lamar Advertising is measured differently than its book value, which is the value of Lamar that is recorded on the company's balance sheet. Investors also form their own opinion of Lamar Advertising's value that differs from its market value or its book value, called intrinsic value, which is Lamar Advertising'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 Lamar Advertising's market value can be influenced by many factors that don't directly affect Lamar Advertising'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 Lamar Advertising's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lamar Advertising is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lamar Advertising'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.