Applied Opt Valuation
| AAOI Stock | USD 10.85 0.41 3.64% |
At this time, the firm appears to be undervalued. Applied Opt shows a prevailing Real Value of $13.08 per share. The current price of the firm is $10.85. Our model approximates the value of Applied Opt from analyzing the firm fundamentals such as Profit Margin of (0.26) %, return on equity of -0.28, and Current Valuation of 503.08 M as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor purchasing undervalued instruments and trading away overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting Applied Opt's valuation include:
Price Book 2.0056 | Enterprise Value 503.1 M | Enterprise Value Ebitda (19.35) | Price Sales 1.9812 | Forward PE 84.0336 |
Undervalued
Today
Please note that Applied Opt's price fluctuation is slightly risky at this time. Calculation of the real value of Applied Opt is based on 3 months time horizon. Increasing Applied Opt's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Applied Opt is useful when determining the fair value of the Applied stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Applied Opt. Since Applied Opt is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Applied Stock. However, Applied Opt'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 10.85 | Real 13.08 | Target 15.75 | Hype 10.66 | Naive 11.43 |
The real value of Applied Stock, also known as its intrinsic value, is the underlying worth of Applied Opt Company, which is reflected in its stock price. It is based on Applied Opt's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Applied Opt'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 Applied Opt'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 Applied Opt helps investors to forecast how Applied 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 Applied Opt more accurately as focusing exclusively on Applied Opt'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 Applied Opt's intrinsic value based on its ongoing forecasts of Applied Opt's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Applied Opt's closest peers. When choosing an evaluation method for Applied Opt, 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.
Applied Opt Investments |
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Applied Valuation Trend
Knowing Applied Opt's actual value is paramount for traders to make sound investment determinations. Applied Opt's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Applied Opt's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Applied Opt'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.
Applied Market Cap
Applied Opt is rated fourth in market capitalization category among related companies. Market capitalization of Information Technology industry is presently estimated at about 3.9 Billion. Applied Opt retains roughly 432.36 Million in market capitalization claiming about 11% of equities under Information Technology industry.Applied Opt Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Applied Opt's current stock value. Our valuation model uses many indicators to compare Applied Opt value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Applied Opt competition to find correlations between indicators driving Applied Opt's intrinsic value. More Info.Applied Opt 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 0.08 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Applied Opt is roughly 12.79 . The current Price To Book Ratio is estimated to decrease to 1.91. Comparative valuation analysis is a catch-all model that can be used if you cannot value Applied Opt by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Applied Opt'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 Applied Opt'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 Applied Opt'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 Applied Opt and how it compares across the competition.
About Applied Opt Valuation
The stock valuation mechanism determines the current worth of Applied Opt on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Applied Opt. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Applied Opt based exclusively on its fundamental and basic technical indicators. By analyzing Applied Opt'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 Applied Opt'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 Applied Opt. We calculate exposure to Applied Opt's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Applied Opt's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 58.9 M | 58.2 M | |
| Pretax Profit Margin | (0.26) | (0.24) | |
| Operating Profit Margin | (0.19) | (0.18) | |
| Net Loss | (0.26) | (0.24) | |
| Gross Profit Margin | 0.27 | 0.32 |
8 Steps to conduct Applied Opt's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Applied Opt'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 Applied Opt's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Applied Opt's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Applied Opt's revenue streams: Identify Applied Opt's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Applied Opt's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Applied Opt's growth potential: Evaluate Applied Opt's management, business model, and growth potential.
- Determine Applied Opt'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 Applied Opt's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Applied Opt 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 Applied Opt 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 | 31.9 M | |
| Forward Price Earnings | 84.0336 |
Applied Opt Current Valuation Indicators
Valuation refers to the process of determining the present value of Applied Opt and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Applied we look at many different elements of the entity such as Applied's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Applied Opt'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 Applied Opt'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 Applied Opt, 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 Applied Opt'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 Applied Opt's worth.When determining whether Applied Opt offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Applied Opt'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 Applied Opt Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Applied Opt Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Applied Opt. 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 detail on how to invest in Applied Stock please use our How to Invest in Applied Opt guide.You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Complementary Tools for Applied Stock analysis
When running Applied Opt's price analysis, check to measure Applied Opt'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 Applied Opt is operating at the current time. Most of Applied Opt's value examination focuses on studying past and present price action to predict the probability of Applied Opt's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Applied Opt's price. Additionally, you may evaluate how the addition of Applied Opt to your portfolios can decrease your overall portfolio volatility.
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Is Applied Opt'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 Applied Opt. If investors know Applied 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 Applied Opt listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (1.75) | Revenue Per Share 6.813 | Quarterly Revenue Growth (0.02) | Return On Assets (0.06) | Return On Equity (0.28) |
The market value of Applied Opt is measured differently than its book value, which is the value of Applied that is recorded on the company's balance sheet. Investors also form their own opinion of Applied Opt's value that differs from its market value or its book value, called intrinsic value, which is Applied Opt'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 Applied Opt's market value can be influenced by many factors that don't directly affect Applied Opt'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 Applied Opt's value and its price as these two are different measures arrived at by different means. Investors typically determine if Applied Opt is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Applied Opt'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.