Stantec Valuation

STN Stock  USD 83.82  0.47  0.56%   
At this time, the company appears to be overvalued. Stantec has a current Real Value of $74.91 per share. The regular price of the company is $83.82. Our model measures the value of Stantec from inspecting the company fundamentals such as Return On Equity of 0.13, operating margin of 0.10 %, and Shares Outstanding of 114.07 M as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend obtaining undervalued stocks and abandoning overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
Price Book
4.7565
Enterprise Value
10.6 B
Enterprise Value Ebitda
13.0786
Price Sales
1.9012
Forward PE
27.027
Overvalued
Today
83.82
Please note that Stantec's price fluctuation is very steady at this time. Calculation of the real value of Stantec is based on 3 months time horizon. Increasing Stantec's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Stantec is useful when determining the fair value of the Stantec stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Stantec. Since Stantec is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Stantec Stock. However, Stantec'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  83.82 Real  74.91 Target  72.72 Hype  83.57 Naive  83.26
The real value of Stantec Stock, also known as its intrinsic value, is the underlying worth of Stantec Company, which is reflected in its stock price. It is based on Stantec's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Stantec'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 Stantec'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.
74.91
Real Value
92.20
Upside
Estimating the potential upside or downside of Stantec helps investors to forecast how Stantec 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 Stantec more accurately as focusing exclusively on Stantec's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.860.910.95
Details
Hype
Prediction
LowEstimatedHigh
82.5283.5784.62
Details
Potential
Annual Dividend
LowForecastedHigh
0.380.380.38
Details
11 Analysts
Consensus
LowTarget PriceHigh
66.1872.7280.72
Details

Stantec Investments

(191.62 Million)

Stantec Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Stantec's current stock value. Our valuation model uses many indicators to compare Stantec value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Stantec competition to find correlations between indicators driving Stantec's intrinsic value. More Info.
Stantec is rated third in five year return category among related companies. It is rated third in last dividend paid category among related companies creating about  0.54  of Last Dividend Paid per Five Year Return. The ratio of Five Year Return to Last Dividend Paid for Stantec is roughly  1.85 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Stantec by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Stantec'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 Stantec'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 Stantec'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 Stantec and how it compares across the competition.

About Stantec Valuation

The stock valuation mechanism determines the current worth of Stantec on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Stantec. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Stantec based exclusively on its fundamental and basic technical indicators. By analyzing Stantec'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 Stantec'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 Stantec. We calculate exposure to Stantec's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Stantec's related companies.
Last ReportedProjected for 2024
Gross Profit2.5 B2.6 B
Pretax Profit Margin 0.06  0.08 
Operating Profit Margin 0.08  0.10 
Net Profit Margin 0.05  0.05 
Gross Profit Margin 0.38  0.63 

8 Steps to conduct Stantec's Valuation Analysis

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

Stantec Dividends Analysis For Valuation

As of the 28th of March 2024, Dividends Paid is likely to grow to about (80.7 M). In addition to that, Dividend Yield is likely to drop to 0.01. As of the 28th of March 2024, Retained Earnings is likely to grow to about 1.5 B. Also, Price Earnings Ratio is likely to grow to 51.54
Last ReportedProjected for 2024
Dividends Paid-84.9 M-80.7 M
Dividend Yield 0.01  0.01 
Dividend Payout Ratio 0.26  0.24 
Dividend Paid And Capex Coverage Ratio(34.69)(32.96)
There are various types of dividends Stantec 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 Stantec 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 Stantec directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Stantec pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Stantec by the value of the dividends paid out.

Stantec 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 Stantec 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 Outstanding111.2 M
Quarterly Earnings Growth Y O Y0.006
Forward Price Earnings27.027

Stantec Current Valuation Indicators

Valuation refers to the process of determining the present value of Stantec and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Stantec we look at many different elements of the entity such as Stantec's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Stantec'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 Stantec'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 Stantec, 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 Stantec'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 Stantec's worth.
When determining whether Stantec offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Stantec'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 Stantec Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Stantec Stock:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Stantec. 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.
To learn how to invest in Stantec Stock, please use our How to Invest in Stantec guide.
You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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Is Stantec'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 Stantec. If investors know Stantec 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 Stantec 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
0.006
Dividend Share
0.78
Earnings Share
2.19
Revenue Per Share
45.548
Quarterly Revenue Growth
0.099
The market value of Stantec is measured differently than its book value, which is the value of Stantec that is recorded on the company's balance sheet. Investors also form their own opinion of Stantec's value that differs from its market value or its book value, called intrinsic value, which is Stantec'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 Stantec's market value can be influenced by many factors that don't directly affect Stantec'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 Stantec's value and its price as these two are different measures arrived at by different means. Investors typically determine if Stantec is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Stantec'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.