Valley National Valuation
| VLY Stock | USD 7.90 0.04 0.51% |
At this time, the company appears to be undervalued. Valley National Bancorp has a current Real Value of $8.57 per share. The regular price of the company is $7.9. Our model measures the value of Valley National Bancorp from inspecting the company fundamentals such as Operating Margin of 0.41 %, shares outstanding of 508.89 M, and Return On Equity of 0.0761 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. Key fundamental drivers impacting Valley National's valuation include:
Price Book 0.5785 | Enterprise Value 7 B | Price Sales 2.0601 | Forward PE 7.2359 | Trailing PE 8.2737 |
Undervalued
Today
Please note that Valley National's price fluctuation is somewhat reliable at this time. Calculation of the real value of Valley National Bancorp is based on 3 months time horizon. Increasing Valley National's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Valley National Bancorp is useful when determining the fair value of the Valley stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Valley National. Since Valley National is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Valley Stock. However, Valley National'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 7.9 | Real 8.57 | Target 10.4 | Hype 7.81 |
The real value of Valley Stock, also known as its intrinsic value, is the underlying worth of Valley National Bancorp Company, which is reflected in its stock price. It is based on Valley National's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Valley National'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 Valley National'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.
Estimating the potential upside or downside of Valley National Bancorp helps investors to forecast how Valley 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 Valley National more accurately as focusing exclusively on Valley National's 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 Valley National's intrinsic value based on its ongoing forecasts of Valley National's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Valley National's closest peers. When choosing an evaluation method for Valley National Bancorp, 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.
Valley National Investments |
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Valley Valuation Trend
Knowing Valley National's actual value is paramount for traders to make sound investment determinations. Valley National's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Valley National's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Valley National's 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.
Valley Market Cap
Valley National Bancorp is rated first in market capitalization category among related companies. Market capitalization of Financials industry is at this time estimated at about 4.23 Billion. Valley National totals roughly 4 Billion in market capitalization claiming about 95% of equities under Financials industry.Valley National Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Valley National's current stock value. Our valuation model uses many indicators to compare Valley National value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Valley National competition to find correlations between indicators driving Valley National's intrinsic value. More Info.Valley National Bancorp is rated fourth in price to earning category among related companies. It is rated fourth in price to book category among related companies fabricating about 0.05 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Valley National Bancorp is roughly 21.78 . Price To Book Ratio is likely to drop to 0.78 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Valley National by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Valley National'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 Valley National'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 Valley National'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 Valley National and how it compares across the competition.
About Valley National Valuation
The stock valuation mechanism determines the current worth of Valley National Bancorp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Valley National Bancorp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Valley National Bancorp based exclusively on its fundamental and basic technical indicators. By analyzing Valley National'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 Valley National'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 Valley National. We calculate exposure to Valley National's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Valley National's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 3.4 B | 3.5 B | |
| Pretax Profit Margin | 0.20 | 0.19 | |
| Operating Profit Margin | (0.01) | (0.01) | |
| Net Profit Margin | 0.15 | 0.14 | |
| Gross Profit Margin | 0.90 | 0.80 |
Valley National Quarterly Retained Earnings |
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8 Steps to conduct Valley National's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Valley National'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 Valley National's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Valley National's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Valley National's revenue streams: Identify Valley National's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Valley National's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Valley National's growth potential: Evaluate Valley National's management, business model, and growth potential.
- Determine Valley National'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 Valley National's 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 Valley National represents a small ownership stake in the entity. As a stockholder of Valley, 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.
Valley National Dividends Analysis For Valuation
At this time, Valley National's Dividends Paid is fairly stable compared to the past year. Dividend Payout Ratio is likely to rise to 0.50 in 2024, whereas Dividend Yield is likely to drop 0.03 in 2024. . At this time, Valley National's Retained Earnings are fairly stable compared to the past year. Retained Earnings Total Equity is likely to rise to about 1.5 B in 2024, whereas Earning Assets are likely to drop slightly above 4.1 B in 2024.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 239.7 M | 251.7 M | |
| Dividend Yield | 0.04 | 0.03 | |
| Dividend Payout Ratio | 0.48 | 0.50 | |
| Dividend Paid And Capex Coverage Ratio | 2.25 | 2.13 |
There are various types of dividends Valley National 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 Valley 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 Valley National Bancorp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Valley pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Valley National by the value of the dividends paid out.
Valley National 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 Valley National 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 | 509.2 M | |
| Quarterly Earnings Growth Y O Y | -0.613 | |
| Forward Price Earnings | 7.2359 |
Valley National Current Valuation Indicators
Valuation refers to the process of determining the present value of Valley National Bancorp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Valley we look at many different elements of the entity such as Valley's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Valley National'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 Valley National'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 Valley National, 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 Valley National'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 Valley National's worth.When determining whether Valley National Bancorp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Valley National'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 Valley National Bancorp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Valley National Bancorp Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Valley National Bancorp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Complementary Tools for Valley Stock analysis
When running Valley National's price analysis, check to measure Valley National'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 Valley National is operating at the current time. Most of Valley National's value examination focuses on studying past and present price action to predict the probability of Valley National's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Valley National's price. Additionally, you may evaluate how the addition of Valley National to your portfolios can decrease your overall portfolio volatility.
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Is Valley National'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 Valley National. If investors know Valley 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 Valley National 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 (0.61) | Dividend Share 0.44 | Earnings Share 0.95 | Revenue Per Share 3.592 | Quarterly Revenue Growth (0.16) |
The market value of Valley National Bancorp is measured differently than its book value, which is the value of Valley that is recorded on the company's balance sheet. Investors also form their own opinion of Valley National's value that differs from its market value or its book value, called intrinsic value, which is Valley National'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 Valley National's market value can be influenced by many factors that don't directly affect Valley National'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 Valley National's value and its price as these two are different measures arrived at by different means. Investors typically determine if Valley National is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Valley National'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.