Lennox International Valuation
| LII Stock | USD 467.85 8.81 1.85% |
At this time, the firm appears to be overvalued. Lennox International secures a last-minute Real Value of $430.41 per share. The latest price of the firm is $467.85. Our model forecasts the value of Lennox International from analyzing the firm fundamentals such as Current Valuation of 18.42 B, profit margin of 0.12 %, and Return On Equity of 0.14 as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend purchasing undervalued stocks and trading away overvalued stocks since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting Lennox International's valuation include:
Price Book 58.8283 | Enterprise Value 18.4 B | Enterprise Value Ebitda 20.7412 | Price Sales 3.3689 | Forward PE 24.0385 |
Overvalued
Today
Please note that Lennox International's price fluctuation is very steady at this time. Calculation of the real value of Lennox International is based on 3 months time horizon. Increasing Lennox International's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Lennox International is useful when determining the fair value of the Lennox stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Lennox International. Since Lennox International is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Lennox Stock. However, Lennox International'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 467.85 | Real 430.41 | Target 397.71 | Hype 467.43 | Naive 464.74 |
The real value of Lennox Stock, also known as its intrinsic value, is the underlying worth of Lennox International Company, which is reflected in its stock price. It is based on Lennox International's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Lennox International'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 Lennox International'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 Lennox International helps investors to forecast how Lennox 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 Lennox International more accurately as focusing exclusively on Lennox International'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 Lennox International's intrinsic value based on its ongoing forecasts of Lennox International's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Lennox International's closest peers. When choosing an evaluation method for Lennox International, 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.
Lennox International Investments |
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Lennox Valuation Trend
Knowing Lennox International's actual value is paramount for traders to make sound investment determinations. Lennox International's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Lennox International's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Lennox International'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.
Lennox Market Cap
Lennox International is rated fourth overall in market capitalization category among related companies. Market capitalization of Industrials industry is now estimated at about 180.52 Billion. Lennox International holds roughly 16.98 Billion in market capitalization claiming about 9% of equities under Industrials industry.Lennox International Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Lennox International's current stock value. Our valuation model uses many indicators to compare Lennox International value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Lennox International competition to find correlations between indicators driving Lennox International's intrinsic value. More Info.Lennox International is rated fifth overall in price to earning category among related companies. It is rated second overall in price to book category among related companies fabricating about 3.05 of Price To Book per Price To Earning. The Lennox International's current Price To Book Ratio is estimated to increase to 58.47. Comparative valuation analysis is a catch-all model that can be used if you cannot value Lennox International by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lennox International'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 Lennox International'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 Lennox International'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 Lennox International and how it compares across the competition.
About Lennox International Valuation
The stock valuation mechanism determines the current worth of Lennox International on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Lennox International. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Lennox International based exclusively on its fundamental and basic technical indicators. By analyzing Lennox International'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 Lennox International'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 Lennox International. We calculate exposure to Lennox International's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Lennox International's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.5 B | 1.1 B | |
| Pretax Profit Margin | 0.15 | 0.16 | |
| Operating Profit Margin | 0.17 | 0.18 | |
| Net Profit Margin | 0.12 | 0.12 | |
| Gross Profit Margin | 0.31 | 0.33 |
Lennox International Quarterly Retained Earnings |
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8 Steps to conduct Lennox International's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Lennox International'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 Lennox International's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Lennox International's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Lennox International's revenue streams: Identify Lennox International's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Lennox International's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Lennox International's growth potential: Evaluate Lennox International's management, business model, and growth potential.
- Determine Lennox International'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 Lennox International'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 Lennox International represents a small ownership stake in the entity. As a stockholder of Lennox, 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.
Lennox International Dividends Analysis For Valuation
As of now, Lennox International's Dividends Paid is increasing as compared to previous years. The Lennox International's current Dividend Yield is estimated to increase to 0.02, while Dividend Payout Ratio is projected to decrease to 0.18. . As of now, Lennox International's Retained Earnings are increasing as compared to previous years. The Lennox International's current Retained Earnings Total Equity is estimated to increase to about 3.7 B, while Earnings Yield is projected to decrease to 0.03.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 153.4 M | 161.1 M | |
| Dividend Yield | 0.01 | 0.02 | |
| Dividend Payout Ratio | 0.26 | 0.18 | |
| Dividend Paid And Capex Coverage Ratio | (7.57) | (7.95) |
There are various types of dividends Lennox International 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 Lennox 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 Lennox International directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Lennox pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Lennox International by the value of the dividends paid out.
Lennox International 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 Lennox International 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 | 35.7 M | |
| Quarterly Earnings Growth Y O Y | 0.534 | |
| Forward Price Earnings | 24.0385 |
Lennox International Current Valuation Indicators
Valuation refers to the process of determining the present value of Lennox International and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Lennox we look at many different elements of the entity such as Lennox's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Lennox International'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 Lennox International'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 Lennox International, 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 Lennox International'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 Lennox International's worth.When determining whether Lennox International offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Lennox International'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 Lennox International Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lennox International Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lennox International. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product. For more detail on how to invest in Lennox Stock please use our How to Invest in Lennox International guide.You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
Complementary Tools for Lennox Stock analysis
When running Lennox International's price analysis, check to measure Lennox International'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 Lennox International is operating at the current time. Most of Lennox International's value examination focuses on studying past and present price action to predict the probability of Lennox International's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lennox International's price. Additionally, you may evaluate how the addition of Lennox International to your portfolios can decrease your overall portfolio volatility.
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Is Lennox International'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 Lennox International. If investors know Lennox 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 Lennox International 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 0.534 | Dividend Share 4.36 | Earnings Share 16.54 | Revenue Per Share 140.335 | Quarterly Revenue Growth 0.056 |
The market value of Lennox International is measured differently than its book value, which is the value of Lennox that is recorded on the company's balance sheet. Investors also form their own opinion of Lennox International's value that differs from its market value or its book value, called intrinsic value, which is Lennox International'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 Lennox International's market value can be influenced by many factors that don't directly affect Lennox International'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 Lennox International's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lennox International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lennox International'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.