Snowflake Valuation

SNOW Stock  USD 161.60  1.56  0.97%   
At this time, the company appears to be overvalued. Snowflake has a current Real Value of $150.29 per share. The regular price of the company is $161.6. Our model measures the value of Snowflake from inspecting the company fundamentals such as Shares Outstanding of 328.8 M, operating margin of (0.35) %, and Return On Equity of -0.16 as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend buying undervalued stocks and disposing overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
Overvalued
Today
161.60
Please note that Snowflake's price fluctuation is very steady at this time. Calculation of the real value of Snowflake is based on 3 months time horizon. Increasing Snowflake's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Snowflake is useful when determining the fair value of the Snowflake stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Snowflake. Since Snowflake is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Snowflake Stock. However, Snowflake'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  161.6 Real  150.29 Hype  161.61 Naive  186.97
The real value of Snowflake Stock, also known as its intrinsic value, is the underlying worth of Snowflake Company, which is reflected in its stock price. It is based on Snowflake's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Snowflake'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 Snowflake'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.
146.75
Downside
150.29
Real Value
177.76
Upside
Estimating the potential upside or downside of Snowflake helps investors to forecast how Snowflake 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 Snowflake more accurately as focusing exclusively on Snowflake's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
125.33172.84220.35
Details
Hype
Prediction
LowEstimatedHigh
158.07161.61165.15
Details
Naive
Forecast
LowNext ValueHigh
183.43186.97190.51
Details

Snowflake Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Snowflake's current stock value. Our valuation model uses many indicators to compare Snowflake value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Snowflake competition to find correlations between indicators driving Snowflake's intrinsic value. More Info.
Snowflake is currently regarded as top stock in net asset category among related companies. It is currently regarded as top stock in price to book category among related companies . The ratio of Net Asset to Price To Book for Snowflake is about  819,903,188 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Snowflake by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Snowflake'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 Snowflake'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 Snowflake'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 Snowflake and how it compares across the competition.

About Snowflake Valuation

The stock valuation mechanism determines the current worth of Snowflake on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Snowflake. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Snowflake based exclusively on its fundamental and basic technical indicators. By analyzing Snowflake'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 Snowflake'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 Snowflake. We calculate exposure to Snowflake's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Snowflake's related companies.
Snowflake Inc. provides a cloud-based data platform in the United States and internationally. Snowflake Inc. was incorporated in 2012 and is based in Bozeman, Montana. Snowflake Inc operates under SoftwareApplication classification in the United States and is traded on New York Stock Exchange. It employs 4991 people.

8 Steps to conduct Snowflake's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Snowflake'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 Snowflake's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Snowflake's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Snowflake's revenue streams: Identify Snowflake's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Snowflake's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Snowflake's growth potential: Evaluate Snowflake's management, business model, and growth potential.
  • Determine Snowflake'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 Snowflake'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.

Snowflake 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 Snowflake 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 Outstanding328 M
Forward Price Earnings196.0784
When determining whether Snowflake is a strong investment it is important to analyze Snowflake'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 Snowflake's future performance. For an informed investment choice regarding Snowflake Stock, refer to the following important reports:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Snowflake. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in persons.
For more information on how to buy Snowflake Stock please use our How to Invest in Snowflake guide.
You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.

Complementary Tools for Snowflake Stock analysis

When running Snowflake's price analysis, check to measure Snowflake'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 Snowflake is operating at the current time. Most of Snowflake's value examination focuses on studying past and present price action to predict the probability of Snowflake's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Snowflake's price. Additionally, you may evaluate how the addition of Snowflake to your portfolios can decrease your overall portfolio volatility.
Fundamental Analysis
View fundamental data based on most recent published financial statements
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Is Snowflake'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 Snowflake. If investors know Snowflake 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 Snowflake listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Snowflake is measured differently than its book value, which is the value of Snowflake that is recorded on the company's balance sheet. Investors also form their own opinion of Snowflake's value that differs from its market value or its book value, called intrinsic value, which is Snowflake'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 Snowflake's market value can be influenced by many factors that don't directly affect Snowflake'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 Snowflake's value and its price as these two are different measures arrived at by different means. Investors typically determine if Snowflake is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Snowflake'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.