Sensata Technologies Valuation
| ST Stock | USD 34.42 0.16 0.47% |
At this time, the company appears to be fairly valued. Sensata Technologies has a current Real Value of $34.52 per share. The regular price of the company is $34.42. Our model measures the value of Sensata Technologies from inspecting the company fundamentals such as Operating Margin of 0.15 %, return on equity of -0.0013, and Shares Outstanding of 150.47 M as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend acquiring undervalued stocks and selling overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other. Key fundamental drivers impacting Sensata Technologies' valuation include:
Price Book 1.7366 | Enterprise Value 8 B | Enterprise Value Ebitda 15.9881 | Price Sales 1.2835 | Forward PE 9.7943 |
Fairly Valued
Today
Please note that Sensata Technologies' price fluctuation is very steady at this time. Calculation of the real value of Sensata Technologies is based on 3 months time horizon. Increasing Sensata Technologies' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Sensata Technologies Holding is useful when determining the fair value of the Sensata stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Sensata Technologies. Since Sensata Technologies is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Sensata Stock. However, Sensata Technologies' 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 34.42 | Real 34.52 | Target 50.0 | Hype 34.26 | Naive 33.64 |
The real value of Sensata Stock, also known as its intrinsic value, is the underlying worth of Sensata Technologies Company, which is reflected in its stock price. It is based on Sensata Technologies' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Sensata Technologies' 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 Sensata Technologies' 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 Sensata Technologies Holding helps investors to forecast how Sensata 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 Sensata Technologies more accurately as focusing exclusively on Sensata Technologies' 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 Sensata Technologies' intrinsic value based on its ongoing forecasts of Sensata Technologies' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Sensata Technologies' closest peers. When choosing an evaluation method for Sensata Technologies, 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.
Sensata Technologies Investments |
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Sensata Valuation Trend
Knowing Sensata Technologies' actual value is paramount for traders to make sound investment determinations. Sensata Technologies' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Sensata Technologies' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Sensata Technologies' 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.
Sensata Market Cap
Sensata Technologies Holding is rated second in market capitalization category among related companies. Market capitalization of Industrials industry is at this time estimated at about 71.16 Billion. Sensata Technologies holds roughly 5.16 Billion in market capitalization claiming about 7% of equities under Industrials industry.Sensata Technologies Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Sensata Technologies's current stock value. Our valuation model uses many indicators to compare Sensata Technologies value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Sensata Technologies competition to find correlations between indicators driving Sensata Technologies's intrinsic value. More Info.Sensata Technologies Holding is rated second in price to earning category among related companies. It is rated second in price to book category among related companies fabricating about 0.08 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Sensata Technologies Holding is roughly 13.23 . Price To Book Ratio is likely to drop to 1.81 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Sensata Technologies by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Sensata Technologies' 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 Sensata Technologies' 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 Sensata Technologies' 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 Sensata Technologies and how it compares across the competition.
About Sensata Technologies Valuation
The stock valuation mechanism determines the current worth of Sensata Technologies Holding on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Sensata Technologies Holding. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Sensata Technologies based exclusively on its fundamental and basic technical indicators. By analyzing Sensata Technologies'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 Sensata Technologies'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 Sensata Technologies. We calculate exposure to Sensata Technologies's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Sensata Technologies's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.3 B | 990 M | |
| Pretax Profit Margin | 0 | 0 | |
| Operating Profit Margin | 0.14 | 0.11 | |
| Net Loss | (0.001) | (0.0009) | |
| Gross Profit Margin | 0.27 | 0.37 |
8 Steps to conduct Sensata Technologies' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Sensata Technologies' 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 Sensata Technologies' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Sensata Technologies' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Sensata Technologies' revenue streams: Identify Sensata Technologies' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Sensata Technologies' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Sensata Technologies' growth potential: Evaluate Sensata Technologies' management, business model, and growth potential.
- Determine Sensata Technologies' 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 Sensata Technologies' 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 Sensata Technologies represents a small ownership stake in the entity. As a stockholder of Sensata, 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.
Sensata Technologies Dividends Analysis For Valuation
At this time, Sensata Technologies' Dividends Paid is comparatively stable compared to the past year. Dividend Yield is likely to gain to 0.01 in 2024, despite the fact that Dividend Payout Ratio is likely to grow to (17.39). . At this time, Sensata Technologies' Retained Earnings are comparatively stable compared to the past year. Retained Earnings Total Equity is likely to gain to about 2.9 B in 2024, despite the fact that Earnings Yield is likely to grow to (0.0006).
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 71.5 M | 75.1 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | (18.30) | (17.39) | |
| Dividend Paid And Capex Coverage Ratio | (4.04) | (4.24) |
There are various types of dividends Sensata Technologies 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 Sensata 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 Sensata Technologies Holding directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Sensata pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Sensata Technologies by the value of the dividends paid out.
Sensata Technologies 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 Sensata Technologies 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 | 152.1 M | |
| Quarterly Earnings Growth Y O Y | -0.548 | |
| Forward Price Earnings | 9.7943 |
Sensata Technologies Current Valuation Indicators
Valuation refers to the process of determining the present value of Sensata Technologies Holding and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Sensata we look at many different elements of the entity such as Sensata's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Sensata Technologies' 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 Sensata Technologies' 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 Sensata Technologies, 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 Sensata Technologies' 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 Sensata Technologies' worth.When determining whether Sensata Technologies is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Sensata Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Sensata Technologies Holding Stock. Highlighted below are key reports to facilitate an investment decision about Sensata Technologies Holding Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Sensata Technologies Holding. 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. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Complementary Tools for Sensata Stock analysis
When running Sensata Technologies' price analysis, check to measure Sensata Technologies' 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 Sensata Technologies is operating at the current time. Most of Sensata Technologies' value examination focuses on studying past and present price action to predict the probability of Sensata Technologies' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sensata Technologies' price. Additionally, you may evaluate how the addition of Sensata Technologies to your portfolios can decrease your overall portfolio volatility.
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Is Sensata Technologies' 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 Sensata Technologies. If investors know Sensata 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 Sensata Technologies 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 (0.55) | Dividend Share 0.47 | Earnings Share (0.03) | Revenue Per Share 26.656 | Quarterly Revenue Growth (0.02) |
The market value of Sensata Technologies is measured differently than its book value, which is the value of Sensata that is recorded on the company's balance sheet. Investors also form their own opinion of Sensata Technologies' value that differs from its market value or its book value, called intrinsic value, which is Sensata Technologies' 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 Sensata Technologies' market value can be influenced by many factors that don't directly affect Sensata Technologies' 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 Sensata Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if Sensata Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sensata Technologies' 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.