Black Hills Valuation
| BKH Stock | USD 52.46 0.73 1.41% |
At this time, the firm appears to be undervalued. Black Hills shows a prevailing Real Value of $56.57 per share. The current price of the firm is $52.46. Our model approximates the value of Black Hills from analyzing the firm fundamentals such as return on equity of 0.0863, and Profit Margin of 0.11 % 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 Black Hills' valuation include:
Price Book 1.1095 | Enterprise Value 8 B | Enterprise Value Ebitda 10.6745 | Price Sales 1.5302 | Forward PE 13.2979 |
Undervalued
Today
Please note that Black Hills' price fluctuation is very steady at this time. Calculation of the real value of Black Hills is based on 3 months time horizon. Increasing Black Hills' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Black Hills is useful when determining the fair value of the Black stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Black Hills. Since Black Hills is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Black Stock. However, Black Hills' 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 52.46 | Real 56.57 | Target 61.0 | Hype 52.49 | Naive 50.8 |
The real value of Black Stock, also known as its intrinsic value, is the underlying worth of Black Hills Company, which is reflected in its stock price. It is based on Black Hills' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Black Hills' 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 Black Hills' 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 Black Hills helps investors to forecast how Black 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 Black Hills more accurately as focusing exclusively on Black Hills' 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 Black Hills' intrinsic value based on its ongoing forecasts of Black Hills' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Black Hills' closest peers. When choosing an evaluation method for Black Hills, 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.
Black Hills Investments |
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Black Valuation Trend
Knowing Black Hills' actual value is paramount for traders to make sound investment determinations. Black Hills' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Black Hills' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Black Hills' 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.
Black Market Cap
Black Hills is rated fourth in market capitalization category among related companies. Market capitalization of Utilities industry is currently estimated at about 40.25 Billion. Black Hills holds roughly 3.58 Billion in market capitalization claiming about 9% of Utilities industry.Black Hills Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Black Hills's current stock value. Our valuation model uses many indicators to compare Black Hills value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Black Hills competition to find correlations between indicators driving Black Hills's intrinsic value. More Info.Black Hills is rated fifth in price to earning category among related companies. It is rated below average 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 Black Hills is roughly 17.47 . The Black Hills' current Price To Book Ratio is estimated to increase to 1.86. Comparative valuation analysis is a catch-all model that can be used if you cannot value Black Hills by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Black Hills' 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 Black Hills' 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 Black Hills' 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 Black Hills and how it compares across the competition.
About Black Hills Valuation
The stock valuation mechanism determines the current worth of Black Hills on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Black Hills. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Black Hills based exclusively on its fundamental and basic technical indicators. By analyzing Black Hills'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 Black Hills'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 Black Hills. We calculate exposure to Black Hills's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Black Hills's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 546.8 M | 312.7 M | |
| Pretax Profit Margin | 0.13 | 0.12 | |
| Operating Profit Margin | 0.21 | 0.14 | |
| Net Profit Margin | 0.11 | 0.10 | |
| Gross Profit Margin | 0.23 | 0.28 |
Black Hills Quarterly Retained Earnings |
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8 Steps to conduct Black Hills' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Black Hills' 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 Black Hills' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Black Hills' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Black Hills' revenue streams: Identify Black Hills' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Black Hills' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Black Hills' growth potential: Evaluate Black Hills' management, business model, and growth potential.
- Determine Black Hills' 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 Black Hills' 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 Black Hills represents a small ownership stake in the entity. As a stockholder of Black, 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.
Black Hills Dividends Analysis For Valuation
The Black Hills' current Dividends Paid is estimated to increase to about (159.7 M). The current Dividend Yield is estimated to decrease to 0.04. The Black Hills' current Retained Earnings is estimated to increase to about 1.2 B, while Retained Earnings Total Equity is projected to decrease to under 713.2 M.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -168.1 M | -159.7 M | |
| Dividend Yield | 0.05 | 0.04 | |
| Dividend Payout Ratio | 0.64 | 0.64 | |
| Dividend Paid And Capex Coverage Ratio | (2.44) | (2.56) |
There are various types of dividends Black Hills 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 Black 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 Black Hills directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Black pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Black Hills by the value of the dividends paid out.
Black Hills 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 Black Hills 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 | 67.1 M | |
| Quarterly Earnings Growth Y O Y | 0.057 | |
| Forward Price Earnings | 13.2979 |
Black Hills Current Valuation Indicators
Valuation refers to the process of determining the present value of Black Hills and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Black we look at many different elements of the entity such as Black's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Black Hills' 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 Black Hills' 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 Black Hills, 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 Black Hills' 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 Black Hills' worth.When determining whether Black Hills offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Black Hills' 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 Black Hills Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Black Hills Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Black Hills. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in industry. For more detail on how to invest in Black Stock please use our How to Invest in Black Hills guide.You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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When running Black Hills' price analysis, check to measure Black Hills' 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 Black Hills is operating at the current time. Most of Black Hills' value examination focuses on studying past and present price action to predict the probability of Black Hills' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Black Hills' price. Additionally, you may evaluate how the addition of Black Hills to your portfolios can decrease your overall portfolio volatility.
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Is Black Hills' 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 Black Hills. If investors know Black 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 Black Hills 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 0.057 | Dividend Share 2.5 | Earnings Share 3.91 | Revenue Per Share 34.796 | Quarterly Revenue Growth (0.25) |
The market value of Black Hills is measured differently than its book value, which is the value of Black that is recorded on the company's balance sheet. Investors also form their own opinion of Black Hills' value that differs from its market value or its book value, called intrinsic value, which is Black Hills' 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 Black Hills' market value can be influenced by many factors that don't directly affect Black Hills' 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 Black Hills' value and its price as these two are different measures arrived at by different means. Investors typically determine if Black Hills is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Black Hills' 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.