Plug Power Valuation
| PLUG Stock | USD 2.49 0.08 3.11% |
Based on Macroaxis valuation methodology, the company appears to be undervalued. Plug Power holds a recent Real Value of $5.71 per share. The prevailing price of the company is $2.49. Our model determines the value of Plug Power from analyzing the company fundamentals such as Return On Equity of -0.39, shares outstanding of 684.25 M, and Operating Margin of (1.64) % as well as examining its technical indicators and probability of bankruptcy. In general, most investors support locking in undervalued entities and disposing overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
Undervalued
Today
Please note that Plug Power's price fluctuation is unstable at this time. Calculation of the real value of Plug Power is based on 3 months time horizon. Increasing Plug Power's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Plug Power is useful when determining the fair value of the Plug stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Plug Power. Since Plug Power is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Plug Stock. However, Plug Power'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 2.49 | Real 5.71 | Hype 2.47 |
The real value of Plug Stock, also known as its intrinsic value, is the underlying worth of Plug Power Company, which is reflected in its stock price. It is based on Plug Power's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Plug Power'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 Plug Power'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 Plug Power helps investors to forecast how Plug 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 Plug Power more accurately as focusing exclusively on Plug Power's fundamentals will not take into account other important factors: Plug Power Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Plug Power's current stock value. Our valuation model uses many indicators to compare Plug Power value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Plug Power competition to find correlations between indicators driving Plug Power's intrinsic value. More Info.Plug Power is rated below average in price to earning category among related companies. It is rated below average in price to book category among related companies . Comparative valuation analysis is a catch-all model that can be used if you cannot value Plug Power by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Plug Power'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 Plug Power'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 Plug Power'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 Plug Power and how it compares across the competition.
About Plug Power Valuation
The stock valuation mechanism determines the current worth of Plug Power on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Plug Power. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Plug Power based exclusively on its fundamental and basic technical indicators. By analyzing Plug Power'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 Plug Power'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 Plug Power. We calculate exposure to Plug Power's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Plug Power's related companies.Plug Power Inc. delivers end-to-end clean hydrogen and zero-emissions fuel cell solutions for supply chain and logistics applications, on-road electric vehicles, stationary power market, and others in North America and internationally. The company was founded in 1997 and is headquartered in Latham, New York. Plug Power operates under Electrical Equipment Parts classification in the United States and is traded on NASDAQ Exchange. It employs 2249 people.
8 Steps to conduct Plug Power's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Plug Power'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 Plug Power's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Plug Power's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Plug Power's revenue streams: Identify Plug Power's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Plug Power's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Plug Power's growth potential: Evaluate Plug Power's management, business model, and growth potential.
- Determine Plug Power'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 Plug Power's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Plug Power 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 Plug Power 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 | 595.5 M |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Plug Power. 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 detail on how to invest in Plug Stock please use our How to Invest in Plug Power guide.You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Complementary Tools for Plug Stock analysis
When running Plug Power's price analysis, check to measure Plug Power'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 Plug Power is operating at the current time. Most of Plug Power's value examination focuses on studying past and present price action to predict the probability of Plug Power's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Plug Power's price. Additionally, you may evaluate how the addition of Plug Power to your portfolios can decrease your overall portfolio volatility.
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Is Plug Power'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 Plug Power. If investors know Plug 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 Plug Power listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Plug Power is measured differently than its book value, which is the value of Plug that is recorded on the company's balance sheet. Investors also form their own opinion of Plug Power's value that differs from its market value or its book value, called intrinsic value, which is Plug Power'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 Plug Power's market value can be influenced by many factors that don't directly affect Plug Power'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 Plug Power's value and its price as these two are different measures arrived at by different means. Investors typically determine if Plug Power is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Plug Power'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.