Micron Technology Valuation

MU Stock  USD 119.25  0.45  0.38%   
At this time, the firm appears to be overvalued. Micron Technology secures a last-minute Real Value of $97.77 per share. The latest price of the firm is $119.25. Our model forecasts the value of Micron Technology from analyzing the firm fundamentals such as Current Valuation of 136.86 B, return on equity of -0.0827, and Profit Margin of (0.21) % as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend acquiring undervalued stocks and selling overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
Price Book
2.9988
Enterprise Value
136.9 B
Enterprise Value Ebitda
33.7104
Price Sales
7.1841
Forward PE
322.5806
Overvalued
Today
119.25
Please note that Micron Technology's price fluctuation is very steady at this time. Calculation of the real value of Micron Technology is based on 3 months time horizon. Increasing Micron Technology's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Micron Technology is useful when determining the fair value of the Micron stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Micron Technology. Since Micron Technology is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Micron Stock. However, Micron Technology'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  119.25 Real  97.77 Target  73.98 Hype  120.06 Naive  123.29
The real value of Micron Stock, also known as its intrinsic value, is the underlying worth of Micron Technology Company, which is reflected in its stock price. It is based on Micron Technology's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Micron Technology'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 Micron Technology'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.
97.77
Real Value
131.18
Upside
Estimating the potential upside or downside of Micron Technology helps investors to forecast how Micron 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 Micron Technology more accurately as focusing exclusively on Micron Technology's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.440.470.56
Details
Hype
Prediction
LowEstimatedHigh
117.21120.06122.91
Details
Potential
Annual Dividend
LowForecastedHigh
0.300.300.30
Details
38 Analysts
Consensus
LowTarget PriceHigh
67.3273.9882.12
Details

Micron Technology Investments

(5.29 Billion)

Micron Technology Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Micron Technology's current stock value. Our valuation model uses many indicators to compare Micron Technology value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Micron Technology competition to find correlations between indicators driving Micron Technology's intrinsic value. More Info.
Micron Technology is considered to be number one stock in net asset category among related companies. It is considered to be number one stock in five year return category among related companies . The ratio of Net Asset to Five Year Return for Micron Technology is about  188,982,352,941 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Micron Technology by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Micron Technology'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 Micron Technology'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 Micron Technology'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 Micron Technology and how it compares across the competition.

About Micron Technology Valuation

The stock valuation mechanism determines the current worth of Micron Technology on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Micron Technology. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Micron Technology based exclusively on its fundamental and basic technical indicators. By analyzing Micron Technology'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 Micron Technology'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 Micron Technology. We calculate exposure to Micron Technology's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Micron Technology's related companies.
Last ReportedProjected for 2024
Gross Profit-1.6 B-1.5 B
Pretax Profit Margin(0.42)(0.40)
Operating Profit Margin(0.33)(0.32)
Net Loss(0.34)(0.32)
Gross Profit Margin(0.10)(0.1)

8 Steps to conduct Micron Technology's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Micron Technology'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 Micron Technology's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Micron Technology's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Micron Technology's revenue streams: Identify Micron Technology's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Micron Technology's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Micron Technology's growth potential: Evaluate Micron Technology's management, business model, and growth potential.
  • Determine Micron Technology'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 Micron Technology's 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.
Micron Technology's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Micron Technology's value is low or high relative to the company's performance and growth projections. Determining the market value of Micron Technology can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Micron Technology represents a small ownership stake in the entity. As a stockholder of Micron, 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.

Micron Technology Dividends Analysis For Valuation

Dividends Paid is likely to gain to about 608.6 M in 2024, whereas Dividend Yield is likely to drop 0.01 in 2024. . At this time, Micron Technology's Retained Earnings are comparatively stable compared to the past year. Retained Earnings Total Equity is likely to gain to about 57.1 B in 2024, despite the fact that Price Earnings Ratio is likely to grow to (14.31).
Last ReportedProjected for 2024
Dividends Paid579.6 M608.6 M
Dividend Yield 0.01  0.01 
Dividend Payout Ratio(0.1)(0.09)
Dividend Paid And Capex Coverage Ratio(0.20)(0.21)
There are various types of dividends Micron Technology 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 Micron 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 Micron Technology directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Micron pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Micron Technology by the value of the dividends paid out.

Micron Technology 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 Micron Technology 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 Outstanding1.1 B
Quarterly Earnings Growth Y O Y-0.432
Forward Price Earnings322.5806

Micron Technology Current Valuation Indicators

Valuation refers to the process of determining the present value of Micron Technology and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Micron we look at many different elements of the entity such as Micron's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Micron Technology'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 Micron Technology'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 Micron Technology, 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 Micron Technology'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 Micron Technology's worth.
When determining whether Micron Technology is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Micron Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Micron Technology Stock. Highlighted below are key reports to facilitate an investment decision about Micron Technology Stock:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Micron Technology. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in employment.
For more information on how to buy Micron Stock please use our How to Invest in Micron Technology guide.
You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

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Is Micron Technology'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 Micron Technology. If investors know Micron 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 Micron Technology 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
(0.43)
Dividend Share
0.46
Earnings Share
(3.45)
Revenue Per Share
16.67
Quarterly Revenue Growth
0.577
The market value of Micron Technology is measured differently than its book value, which is the value of Micron that is recorded on the company's balance sheet. Investors also form their own opinion of Micron Technology's value that differs from its market value or its book value, called intrinsic value, which is Micron Technology'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 Micron Technology's market value can be influenced by many factors that don't directly affect Micron Technology'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 Micron Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Micron Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Micron Technology'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.