MSC Industrial Valuation
| MSM Stock | USD 93.42 0.16 0.17% |
At this time, the firm appears to be undervalued. MSC Industrial Direct owns a latest Real Value of $101.76 per share. The recent price of the firm is $93.42. Our model forecasts the value of MSC Industrial Direct from analyzing the firm fundamentals such as Operating Margin of 0.10 %, profit margin of 0.08 %, and Return On Asset of 0.11 as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend obtaining undervalued equities and abandoning overvalued equities since, at some point future time, asset prices and their ongoing real values will come together. Key fundamental drivers impacting MSC Industrial's valuation include:
Price Book 3.7525 | Enterprise Value 5.8 B | Enterprise Value Ebitda 11.3086 | Price Sales 1.3113 | Forward PE 15.1515 |
Undervalued
Today
Please note that MSC Industrial's price fluctuation is very steady at this time. Calculation of the real value of MSC Industrial Direct is based on 3 months time horizon. Increasing MSC Industrial's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for MSC Industrial Direct is useful when determining the fair value of the MSC stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of MSC Industrial. Since MSC Industrial is currently traded on the exchange, buyers and sellers on that exchange determine the market value of MSC Stock. However, MSC Industrial'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 93.42 | Real 101.76 | Target 108.5 | Hype 93.35 | Naive 92.82 |
The real value of MSC Stock, also known as its intrinsic value, is the underlying worth of MSC Industrial Direct Company, which is reflected in its stock price. It is based on MSC Industrial's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of MSC Industrial'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 MSC Industrial'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 MSC Industrial Direct helps investors to forecast how MSC 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 MSC Industrial more accurately as focusing exclusively on MSC Industrial'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 MSC Industrial's intrinsic value based on its ongoing forecasts of MSC Industrial's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against MSC Industrial's closest peers. When choosing an evaluation method for MSC Industrial Direct, 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.
MSC Industrial Investments |
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MSC Valuation Trend
Knowing MSC Industrial's actual value is paramount for traders to make sound investment determinations. MSC Industrial's real value is not only important for the investor to make better decisions but also for a more accurate overall view of MSC Industrial's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both MSC Industrial'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.
MSC Market Cap
MSC Industrial Direct is considered to be number one stock in market capitalization category among related companies. Market capitalization of Industrials industry is now estimated at about 5.52 Billion. MSC Industrial totals roughly 5.25 Billion in market capitalization claiming about 95% of equities under Industrials industry.MSC Industrial Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining MSC Industrial's current stock value. Our valuation model uses many indicators to compare MSC Industrial value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across MSC Industrial competition to find correlations between indicators driving MSC Industrial's intrinsic value. More Info.MSC Industrial Direct is considered to be number one stock in price to earning category among related companies. It is considered to be number one stock in price to book category among related companies fabricating about 0.15 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for MSC Industrial Direct is roughly 6.72 . As of the 24th of April 2024, Price To Book Ratio is likely to grow to 3.91. Comparative valuation analysis is a catch-all model that can be used if you cannot value MSC Industrial by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for MSC Industrial'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 MSC Industrial'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 MSC Industrial'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 MSC Industrial and how it compares across the competition.
About MSC Industrial Valuation
The stock valuation mechanism determines the current worth of MSC Industrial Direct on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of MSC Industrial Direct. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of MSC Industrial Direct based exclusively on its fundamental and basic technical indicators. By analyzing MSC Industrial'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 MSC Industrial'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 MSC Industrial. We calculate exposure to MSC Industrial's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to MSC Industrial's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.9 B | 2 B | |
| Pretax Profit Margin | 0.11 | 0.14 | |
| Operating Profit Margin | 0.12 | 0.10 | |
| Net Profit Margin | 0.09 | 0.07 | |
| Gross Profit Margin | 0.43 | 0.48 |
MSC Industrial Quarterly Retained Earnings |
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8 Steps to conduct MSC Industrial's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates MSC Industrial'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 MSC Industrial's valuation analysis, follow these 8 steps:- Gather financial information: Obtain MSC Industrial's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine MSC Industrial's revenue streams: Identify MSC Industrial's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research MSC Industrial's industry and market trends, including the size of the market, growth rate, and competition.
- Establish MSC Industrial's growth potential: Evaluate MSC Industrial's management, business model, and growth potential.
- Determine MSC Industrial'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 MSC Industrial'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 MSC Industrial represents a small ownership stake in the entity. As a stockholder of MSC, 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.
MSC Industrial Dividends Analysis For Valuation
As of the 24th of April 2024, Dividend Payout Ratio is likely to grow to 0.75, while Dividends Paid is likely to drop about 134.9 M. . At this time, MSC Industrial's Retained Earnings Total Equity is very stable compared to the past year. As of the 24th of April 2024, Price Earnings Ratio is likely to grow to 23.50, while Retained Earnings are likely to drop about 703.9 M.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 203.2 M | 134.9 M | |
| Dividend Yield | 0.04 | 0.03 | |
| Dividend Payout Ratio | 0.50 | 0.75 | |
| Dividend Paid And Capex Coverage Ratio | 3.50 | 2.34 |
There are various types of dividends MSC Industrial 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 MSC 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 MSC Industrial Direct directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When MSC pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of MSC Industrial by the value of the dividends paid out.
MSC Industrial 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 MSC Industrial 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 | 56.2 M | |
| Quarterly Earnings Growth Y O Y | -0.221 | |
| Forward Price Earnings | 15.1515 |
MSC Industrial Current Valuation Indicators
Valuation refers to the process of determining the present value of MSC Industrial Direct and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value MSC we look at many different elements of the entity such as MSC's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. MSC Industrial'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 MSC Industrial'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 MSC Industrial, 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 MSC Industrial'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 MSC Industrial's worth.When determining whether MSC Industrial Direct is a strong investment it is important to analyze MSC Industrial's 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 MSC Industrial's future performance. For an informed investment choice regarding MSC Stock, refer to the following important reports: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in MSC Industrial Direct. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in state. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Complementary Tools for MSC Stock analysis
When running MSC Industrial's price analysis, check to measure MSC Industrial'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 MSC Industrial is operating at the current time. Most of MSC Industrial's value examination focuses on studying past and present price action to predict the probability of MSC Industrial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move MSC Industrial's price. Additionally, you may evaluate how the addition of MSC Industrial to your portfolios can decrease your overall portfolio volatility.
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Is MSC Industrial'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 MSC Industrial. If investors know MSC 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 MSC Industrial 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 (0.22) | Dividend Share 3.28 | Earnings Share 5.57 | Revenue Per Share 70.85 | Quarterly Revenue Growth (0.03) |
The market value of MSC Industrial Direct is measured differently than its book value, which is the value of MSC that is recorded on the company's balance sheet. Investors also form their own opinion of MSC Industrial's value that differs from its market value or its book value, called intrinsic value, which is MSC Industrial'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 MSC Industrial's market value can be influenced by many factors that don't directly affect MSC Industrial'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 MSC Industrial's value and its price as these two are different measures arrived at by different means. Investors typically determine if MSC Industrial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, MSC Industrial'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.