CF Industries Valuation

CF Stock  USD 83.21  0.60  0.73%   
At this time, the firm appears to be fairly valued. CF Industries Holdings owns a latest Real Value of $81.8 per share. The recent price of the firm is $83.21. Our model approximates the value of CF Industries Holdings from evaluating the firm fundamentals such as Shares Owned By Insiders of 0.53 %, return on asset of 0.1, and Shares Outstanding of 187.73 M as well as inspecting its technical indicators and probability of bankruptcy. In general, most investors favor locking in undervalued equities and disposing overvalued equities since, sooner or later, asset prices and their ongoing real values will grow together.
Price Book
2.7323
Enterprise Value
16.8 B
Enterprise Value Ebitda
5.1581
Price Sales
2.3557
Forward PE
13.5135
Fairly Valued
Today
83.21
Please note that CF Industries' price fluctuation is very steady at this time. Calculation of the real value of CF Industries Holdings is based on 3 months time horizon. Increasing CF Industries' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for CF Industries Holdings is useful when determining the fair value of the CF Industries stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of CF Industries. Since CF Industries is currently traded on the exchange, buyers and sellers on that exchange determine the market value of CF Industries Stock. However, CF Industries' 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  83.21 Real  81.8 Target  89.44 Hype  83.21 Naive  80.22
The real value of CF Industries Stock, also known as its intrinsic value, is the underlying worth of CF Industries Holdings Company, which is reflected in its stock price. It is based on CF Industries' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of CF Industries' 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 CF Industries' 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.
81.80
Real Value
91.53
Upside
Estimating the potential upside or downside of CF Industries Holdings helps investors to forecast how CF Industries 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 CF Industries more accurately as focusing exclusively on CF Industries' fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
1.351.572.09
Details
Hype
Prediction
LowEstimatedHigh
81.8283.2184.60
Details
Potential
Annual Dividend
LowForecastedHigh
1.211.231.26
Details
21 Analysts
Consensus
LowTarget PriceHigh
81.3989.4499.28
Details

CF Industries Investments

(423.15 Million)

CF Industries Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining CF Industries's current stock value. Our valuation model uses many indicators to compare CF Industries value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across CF Industries competition to find correlations between indicators driving CF Industries's intrinsic value. More Info.
CF Industries Holdings is number one stock in net asset category among related companies. It is number one stock in beta category among related companies . The ratio of Net Asset to Beta for CF Industries Holdings is about  14,052,785,924 . Comparative valuation analysis is a catch-all model that can be used if you cannot value CF Industries by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for CF Industries' 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 CF Industries' 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 CF Industries' 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 CF Industries and how it compares across the competition.

About CF Industries Valuation

The stock valuation mechanism determines the current worth of CF Industries Holdings on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of CF Industries Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of CF Industries Holdings based exclusively on its fundamental and basic technical indicators. By analyzing CF Industries'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 CF Industries'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 CF Industries. We calculate exposure to CF Industries's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to CF Industries's related companies.
Last ReportedProjected for 2024
Gross Profit2.5 B1.5 B
Pretax Profit Margin 0.34  0.36 
Operating Profit Margin 0.33  0.17 
Net Profit Margin 0.23  0.24 
Gross Profit Margin 0.38  0.21 

8 Steps to conduct CF Industries' Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates CF Industries' 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 CF Industries' valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain CF Industries' financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine CF Industries' revenue streams: Identify CF Industries' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research CF Industries' industry and market trends, including the size of the market, growth rate, and competition.
  • Establish CF Industries' growth potential: Evaluate CF Industries' management, business model, and growth potential.
  • Determine CF Industries' 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 CF Industries' estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
CF Industries' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether CF Industries' value is low or high relative to the company's performance and growth projections. Determining the market value of CF Industries can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of CF Industries represents a small ownership stake in the entity. As a stockholder of CF Industries, 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.

CF Industries Dividends Analysis For Valuation

The CF Industries' current Dividends Paid is estimated to increase to about (295.4 M). The current Dividend Yield is estimated to decrease to 0.01. The current Retained Earnings is estimated to decrease to about 2.3 B. The current Retained Earnings Total Equity is estimated to decrease to about 2.8 B
Last ReportedProjected for 2024
Dividends Paid-311 M-295.4 M
Dividend Yield 0.02  0.01 
Dividend Payout Ratio 0.20  0.17 
Dividend Paid And Capex Coverage Ratio(1.95)(2.05)
There are various types of dividends CF Industries 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 CF Industries 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 CF Industries Holdings directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When CF Industries pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of CF Industries by the value of the dividends paid out.

CF Industries 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 CF Industries 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 Outstanding193.8 M
Quarterly Earnings Growth Y O Y-0.67
Forward Price Earnings13.5135

CF Industries Current Valuation Indicators

Valuation refers to the process of determining the present value of CF Industries Holdings and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value CF Industries we look at many different elements of the entity such as CF Industries's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. CF Industries' 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 CF Industries' 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 CF Industries, 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 CF Industries' 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 CF Industries' worth.
When determining whether CF Industries Holdings is a strong investment it is important to analyze CF Industries' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact CF Industries' future performance. For an informed investment choice regarding CF Industries Stock, refer to the following important reports:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in CF Industries 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 census.
Note that the CF Industries Holdings information on this page should be used as a complementary analysis to other CF Industries' 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

Complementary Tools for CF Industries Stock analysis

When running CF Industries' price analysis, check to measure CF Industries' 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 CF Industries is operating at the current time. Most of CF Industries' value examination focuses on studying past and present price action to predict the probability of CF Industries' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CF Industries' price. Additionally, you may evaluate how the addition of CF Industries to your portfolios can decrease your overall portfolio volatility.
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Is CF Industries' 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 CF Industries. If investors know CF Industries 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 CF Industries 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
(0.67)
Dividend Share
1.6
Earnings Share
7.87
Revenue Per Share
34.304
Quarterly Revenue Growth
(0.40)
The market value of CF Industries Holdings is measured differently than its book value, which is the value of CF Industries that is recorded on the company's balance sheet. Investors also form their own opinion of CF Industries' value that differs from its market value or its book value, called intrinsic value, which is CF Industries' 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 CF Industries' market value can be influenced by many factors that don't directly affect CF Industries' 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 CF Industries' value and its price as these two are different measures arrived at by different means. Investors typically determine if CF Industries is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CF Industries' 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.