Farmland Partners Valuation
| FPI Stock | USD 10.85 0.04 0.37% |
At this time, the firm appears to be undervalued. Farmland Partners shows a prevailing Real Value of $12.04 per share. The current price of the firm is $10.85. Our model computes the value of Farmland Partners from reviewing the firm fundamentals such as Shares Outstanding of 48.16 M, current valuation of 981.57 M, and Profit Margin of 0.54 % as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise purchasing undervalued instruments and trading away overvalued instruments since, at some point, asset prices and their ongoing real values will submerge. Key fundamental drivers impacting Farmland Partners' valuation include:
Price Book 0.9801 | Enterprise Value 981.6 M | Enterprise Value Ebitda 13.9677 | Price Sales 9.0185 | Forward PE 50.7614 |
Undervalued
Today
Please note that Farmland Partners' price fluctuation is not too volatile at this time. Calculation of the real value of Farmland Partners is based on 3 months time horizon. Increasing Farmland Partners' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Farmland Partners is useful when determining the fair value of the Farmland stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Farmland Partners. Since Farmland Partners is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Farmland Stock. However, Farmland Partners' 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 10.85 | Real 12.04 | Target 13.13 | Hype 10.81 |
The real value of Farmland Stock, also known as its intrinsic value, is the underlying worth of Farmland Partners Company, which is reflected in its stock price. It is based on Farmland Partners' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Farmland Partners' 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 Farmland Partners' 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 Farmland Partners helps investors to forecast how Farmland 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 Farmland Partners more accurately as focusing exclusively on Farmland Partners' 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 Farmland Partners' intrinsic value based on its ongoing forecasts of Farmland Partners' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Farmland Partners' closest peers. When choosing an evaluation method for Farmland Partners, 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.
Farmland Partners Investments |
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Farmland Valuation Trend
Knowing Farmland Partners' actual value is paramount for traders to make sound investment determinations. Farmland Partners' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Farmland Partners' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Farmland Partners' 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.
Farmland Market Cap
Farmland Partners is rated below average in market capitalization category among related companies. Market capitalization of Real Estate industry is currently estimated at about 99 Billion. Farmland Partners maintains roughly 533.57 Million in market capitalization contributing less than 1% to equities listed under Real Estate industry.Farmland Partners Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Farmland Partners's current stock value. Our valuation model uses many indicators to compare Farmland Partners value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Farmland Partners competition to find correlations between indicators driving Farmland Partners's intrinsic value. More Info.Farmland Partners is rated # 4 in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.02 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Farmland Partners is roughly 52.45 . The current Price To Book Ratio is estimated to decrease to 1.15. Comparative valuation analysis is a catch-all model that can be used if you cannot value Farmland Partners by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Farmland Partners' 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 Farmland Partners' 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 Farmland Partners' 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 Farmland Partners and how it compares across the competition.
About Farmland Partners Valuation
The stock valuation mechanism determines the current worth of Farmland Partners on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Farmland Partners. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Farmland Partners based exclusively on its fundamental and basic technical indicators. By analyzing Farmland Partners'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 Farmland Partners'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 Farmland Partners. We calculate exposure to Farmland Partners's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Farmland Partners's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 36.6 M | 32 M | |
| Pretax Profit Margin | 0.55 | 0.58 | |
| Operating Profit Margin | 0.41 | 0.52 | |
| Net Profit Margin | 0.54 | 0.56 | |
| Gross Profit Margin | 0.64 | 0.95 |
8 Steps to conduct Farmland Partners' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Farmland Partners' 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 Farmland Partners' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Farmland Partners' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Farmland Partners' revenue streams: Identify Farmland Partners' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Farmland Partners' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Farmland Partners' growth potential: Evaluate Farmland Partners' management, business model, and growth potential.
- Determine Farmland Partners' 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 Farmland Partners' 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 Farmland Partners represents a small ownership stake in the entity. As a stockholder of Farmland, 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.
Farmland Partners Dividends Analysis For Valuation
The current Dividends Paid is estimated to decrease to about 14.1 M. The current Dividend Yield is estimated to decrease to 0.02. As of now, Farmland Partners' Earnings Yield is increasing as compared to previous years. The Farmland Partners' current Price Earnings To Growth Ratio is estimated to increase to 0.09, while Retained Earnings are forecasted to increase to (61.3 M).
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 15.5 M | 14.1 M | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.50 | 0.48 | |
| Dividend Paid And Capex Coverage Ratio | 1.34 | 0.74 |
There are various types of dividends Farmland Partners 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 Farmland 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 Farmland Partners directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Farmland pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Farmland Partners by the value of the dividends paid out.
Farmland Partners 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 Farmland Partners 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 | 58.3 M | |
| Quarterly Earnings Growth Y O Y | 1.335 | |
| Forward Price Earnings | 50.7614 |
Farmland Partners Current Valuation Indicators
Valuation refers to the process of determining the present value of Farmland Partners and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Farmland we look at many different elements of the entity such as Farmland's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Farmland Partners' 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 Farmland Partners' 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 Farmland Partners, 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 Farmland Partners' 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 Farmland Partners' worth.When determining whether Farmland Partners offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Farmland Partners' 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 Farmland Partners Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Farmland Partners Stock: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Farmland Partners. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in american community survey. For more detail on how to invest in Farmland Stock please use our How to Invest in Farmland Partners guide.You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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When running Farmland Partners' price analysis, check to measure Farmland Partners' 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 Farmland Partners is operating at the current time. Most of Farmland Partners' value examination focuses on studying past and present price action to predict the probability of Farmland Partners' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Farmland Partners' price. Additionally, you may evaluate how the addition of Farmland Partners to your portfolios can decrease your overall portfolio volatility.
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Is Farmland Partners' 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 Farmland Partners. If investors know Farmland 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 Farmland Partners 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 1.335 | Dividend Share 0.24 | Earnings Share 0.53 | Revenue Per Share 1.144 | Quarterly Revenue Growth (0.01) |
The market value of Farmland Partners is measured differently than its book value, which is the value of Farmland that is recorded on the company's balance sheet. Investors also form their own opinion of Farmland Partners' value that differs from its market value or its book value, called intrinsic value, which is Farmland Partners' 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 Farmland Partners' market value can be influenced by many factors that don't directly affect Farmland Partners' 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 Farmland Partners' value and its price as these two are different measures arrived at by different means. Investors typically determine if Farmland Partners is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Farmland Partners' 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.