Veritex Holdings Valuation
| VBTX Stock | USD 20.77 0.47 2.32% |
At this time, the company appears to be undervalued. Veritex Holdings has a current Real Value of $22.34 per share. The regular price of the company is $20.77. Our model measures the value of Veritex Holdings from inspecting the company fundamentals such as Return On Equity of 0.0726, shares outstanding of 54.5 M, and Operating Margin of 0.17 % as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend acquiring undervalued stocks and dropping overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
Price Book 0.6947 | Enterprise Value 855.3 M | Price Sales 2.816 | Trailing PE 10.2525 |
Undervalued
Today
Please note that Veritex Holdings' price fluctuation is very steady at this time. Calculation of the real value of Veritex Holdings is based on 3 months time horizon. Increasing Veritex Holdings' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Veritex Holdings is useful when determining the fair value of the Veritex stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Veritex Holdings. Since Veritex Holdings is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Veritex Stock. However, Veritex Holdings' 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 20.77 | Real 22.34 | Target 24.4 | Hype 20.37 |
The real value of Veritex Stock, also known as its intrinsic value, is the underlying worth of Veritex Holdings Company, which is reflected in its stock price. It is based on Veritex Holdings' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Veritex Holdings' 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 Veritex Holdings' 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 Veritex Holdings helps investors to forecast how Veritex 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 Veritex Holdings more accurately as focusing exclusively on Veritex Holdings' fundamentals will not take into account other important factors: Veritex Holdings Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Veritex Holdings's current stock value. Our valuation model uses many indicators to compare Veritex Holdings value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Veritex Holdings competition to find correlations between indicators driving Veritex Holdings's intrinsic value. More Info.Veritex Holdings is rated fourth in price to earning category among related companies. It is rated third in price to book category among related companies fabricating about 0.06 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Veritex Holdings is roughly 16.29 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Veritex Holdings by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Veritex Holdings' 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 Veritex Holdings' 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 Veritex Holdings' 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 Veritex Holdings and how it compares across the competition.
About Veritex Holdings Valuation
The stock valuation mechanism determines the current worth of Veritex Holdings on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Veritex Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Veritex Holdings based exclusively on its fundamental and basic technical indicators. By analyzing Veritex Holdings'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 Veritex Holdings'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 Veritex Holdings. We calculate exposure to Veritex Holdings's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Veritex Holdings's related companies.Veritex Holdings, Inc. operates as the bank holding company for Veritex Community Bank that provides various commercial banking products and services to small and medium-sized businesses, and professionals. Veritex Holdings, Inc. was incorporated in 2009 and is headquartered in Dallas, Texas. Veritex Holdings operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 690 people.
Veritex Holdings Quarterly Retained Earnings |
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8 Steps to conduct Veritex Holdings' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Veritex Holdings' 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 Veritex Holdings' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Veritex Holdings' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Veritex Holdings' revenue streams: Identify Veritex Holdings' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Veritex Holdings' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Veritex Holdings' growth potential: Evaluate Veritex Holdings' management, business model, and growth potential.
- Determine Veritex Holdings' 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 Veritex Holdings' 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 Veritex Holdings represents a small ownership stake in the entity. As a stockholder of Veritex, 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.
Veritex Holdings Dividends Analysis For Valuation
There are various types of dividends Veritex Holdings 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 Veritex 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 Veritex Holdings directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Veritex pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Veritex Holdings by the value of the dividends paid out.
Veritex Holdings 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 Veritex Holdings 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 | 54.6 M | |
| Quarterly Earnings Growth Y O Y | -0.916 |
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Veritex Holdings. 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. For more information on how to buy Veritex Stock please use our How to Invest in Veritex Holdings guide.You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Complementary Tools for Veritex Stock analysis
When running Veritex Holdings' price analysis, check to measure Veritex Holdings' 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 Veritex Holdings is operating at the current time. Most of Veritex Holdings' value examination focuses on studying past and present price action to predict the probability of Veritex Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Veritex Holdings' price. Additionally, you may evaluate how the addition of Veritex Holdings to your portfolios can decrease your overall portfolio volatility.
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Is Veritex Holdings' 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 Veritex Holdings. If investors know Veritex 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 Veritex Holdings 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 (0.92) | Dividend Share 0.8 | Earnings Share 1.98 | Revenue Per Share 6.962 | Quarterly Revenue Growth (0.36) |
The market value of Veritex Holdings is measured differently than its book value, which is the value of Veritex that is recorded on the company's balance sheet. Investors also form their own opinion of Veritex Holdings' value that differs from its market value or its book value, called intrinsic value, which is Veritex Holdings' 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 Veritex Holdings' market value can be influenced by many factors that don't directly affect Veritex Holdings' 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 Veritex Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Veritex Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Veritex Holdings' 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.