Booz Allen Valuation
| BAH Stock | USD 142.14 2.63 1.89% |
At this time, the firm appears to be fairly valued. Booz Allen Hamilton shows a prevailing Real Value of $141.03 per share. The current price of the firm is $142.14. Our model approximates the value of Booz Allen Hamilton from analyzing the firm fundamentals such as Return On Equity of 0.36, current valuation of 21.12 B, and Profit Margin of 0.04 % 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 Booz Allen's valuation include:
Price Book 17.2108 | Enterprise Value 21.1 B | Enterprise Value Ebitda 24.1882 | Price Sales 1.8109 | Forward PE 18.2482 |
Fairly Valued
Today
Please note that Booz Allen's price fluctuation is very steady at this time. Calculation of the real value of Booz Allen Hamilton is based on 3 months time horizon. Increasing Booz Allen's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Booz Allen Hamilton is useful when determining the fair value of the Booz stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Booz Allen. Since Booz Allen is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Booz Stock. However, Booz Allen'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 142.14 | Real 141.03 | Target 133.15 | Hype 139.55 |
The real value of Booz Stock, also known as its intrinsic value, is the underlying worth of Booz Allen Hamilton Company, which is reflected in its stock price. It is based on Booz Allen's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Booz Allen'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 Booz Allen'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 Booz Allen Hamilton helps investors to forecast how Booz 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 Booz Allen more accurately as focusing exclusively on Booz Allen'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 Booz Allen's intrinsic value based on its ongoing forecasts of Booz Allen's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Booz Allen's closest peers. When choosing an evaluation method for Booz Allen Hamilton, 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.
Booz Allen Investments |
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Booz Valuation Trend
Knowing Booz Allen's actual value is paramount for traders to make sound investment determinations. Booz Allen's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Booz Allen's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Booz Allen'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.
Booz Market Cap
Booz Allen Hamilton is number one stock in market capitalization category among related companies. Market capitalization of Information Technology industry is currently estimated at about 109.78 Billion. Booz Allen retains roughly 18.1 Billion in market capitalization claiming about 16% of equities under Information Technology industry.Booz Allen Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Booz Allen's current stock value. Our valuation model uses many indicators to compare Booz Allen value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Booz Allen competition to find correlations between indicators driving Booz Allen's intrinsic value. More Info.Booz Allen Hamilton is number one stock in price to earning category among related companies. It is number one stock in price to book category among related companies fabricating about 0.63 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Booz Allen Hamilton is roughly 1.58 . The current Price To Book Ratio is estimated to decrease to 7.84. Comparative valuation analysis is a catch-all model that can be used if you cannot value Booz Allen by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Booz Allen'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 Booz Allen'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 Booz Allen'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 Booz Allen and how it compares across the competition.
About Booz Allen Valuation
The stock valuation mechanism determines the current worth of Booz Allen Hamilton on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Booz Allen Hamilton. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Booz Allen Hamilton based exclusively on its fundamental and basic technical indicators. By analyzing Booz Allen'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 Booz Allen'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 Booz Allen. We calculate exposure to Booz Allen's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Booz Allen's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 5.7 B | 3.6 B | |
| Pretax Profit Margin | 0.04 | 0.04 | |
| Operating Profit Margin | 0.04 | 0.05 | |
| Net Profit Margin | 0.03 | 0.02 | |
| Gross Profit Margin | 0.48 | 0.42 |
8 Steps to conduct Booz Allen's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Booz Allen'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 Booz Allen's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Booz Allen's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Booz Allen's revenue streams: Identify Booz Allen's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Booz Allen's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Booz Allen's growth potential: Evaluate Booz Allen's management, business model, and growth potential.
- Determine Booz Allen'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 Booz Allen'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 Booz Allen represents a small ownership stake in the entity. As a stockholder of Booz, 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.
Booz Allen Dividends Analysis For Valuation
As of now, Booz Allen's Dividends Paid is decreasing as compared to previous years. The Booz Allen's current Dividend Paid And Capex Coverage Ratio is estimated to increase to 5.89, while Dividend Yield is projected to decrease to 0.02. . As of now, Booz Allen's Price Earnings Ratio is increasing as compared to previous years.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 212.2 M | 289.6 M | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 1.00 | 0.95 | |
| Dividend Paid And Capex Coverage Ratio | 3.40 | 5.89 |
There are various types of dividends Booz Allen 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 Booz 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 Booz Allen Hamilton directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Booz pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Booz Allen by the value of the dividends paid out.
Booz Allen 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 Booz Allen 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 | 132.7 M | |
| Quarterly Earnings Growth Y O Y | 3.814 | |
| Forward Price Earnings | 18.2482 |
Booz Allen Current Valuation Indicators
Valuation refers to the process of determining the present value of Booz Allen Hamilton and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Booz we look at many different elements of the entity such as Booz's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Booz Allen'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 Booz Allen'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 Booz Allen, 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 Booz Allen'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 Booz Allen's worth.When determining whether Booz Allen Hamilton offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Booz Allen'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 Booz Allen Hamilton Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Booz Allen Hamilton Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Booz Allen Hamilton. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. Note that the Booz Allen Hamilton information on this page should be used as a complementary analysis to other Booz Allen's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
Complementary Tools for Booz Stock analysis
When running Booz Allen's price analysis, check to measure Booz Allen'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 Booz Allen is operating at the current time. Most of Booz Allen's value examination focuses on studying past and present price action to predict the probability of Booz Allen's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Booz Allen's price. Additionally, you may evaluate how the addition of Booz Allen to your portfolios can decrease your overall portfolio volatility.
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Is Booz Allen'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 Booz Allen. If investors know Booz 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 Booz Allen 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 3.814 | Dividend Share 1.88 | Earnings Share 3.11 | Revenue Per Share 78.848 | Quarterly Revenue Growth 0.129 |
The market value of Booz Allen Hamilton is measured differently than its book value, which is the value of Booz that is recorded on the company's balance sheet. Investors also form their own opinion of Booz Allen's value that differs from its market value or its book value, called intrinsic value, which is Booz Allen'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 Booz Allen's market value can be influenced by many factors that don't directly affect Booz Allen'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 Booz Allen's value and its price as these two are different measures arrived at by different means. Investors typically determine if Booz Allen is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Booz Allen'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.