Kontoor Brands Valuation
| KTB Stock | USD 57.38 0.93 1.65% |
At this time, the firm appears to be fairly valued. Kontoor Brands secures a last-minute Real Value of $55.69 per share. The latest price of the firm is $57.38. Our model forecasts the value of Kontoor Brands from analyzing the firm fundamentals such as Profit Margin of 0.09 %, current valuation of 3.77 B, and Return On Equity of 0.74 as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend taking in undervalued stocks and trading overvalued stocks since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting Kontoor Brands' valuation include:
Price Book 8.09 | Enterprise Value 3.8 B | Enterprise Value Ebitda 10.3764 | Price Sales 1.1539 | Forward PE 11.4811 |
Fairly Valued
Today
Please note that Kontoor Brands' price fluctuation is very steady at this time. Calculation of the real value of Kontoor Brands is based on 3 months time horizon. Increasing Kontoor Brands' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Kontoor Brands is useful when determining the fair value of the Kontoor stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Kontoor Brands. Since Kontoor Brands is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Kontoor Stock. However, Kontoor Brands' 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 57.38 | Real 55.69 | Target 53.43 | Hype 57.42 |
The real value of Kontoor Stock, also known as its intrinsic value, is the underlying worth of Kontoor Brands Company, which is reflected in its stock price. It is based on Kontoor Brands' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Kontoor Brands' 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 Kontoor Brands' 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 Kontoor Brands helps investors to forecast how Kontoor 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 Kontoor Brands more accurately as focusing exclusively on Kontoor Brands' 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 Kontoor Brands' intrinsic value based on its ongoing forecasts of Kontoor Brands' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Kontoor Brands' closest peers. When choosing an evaluation method for Kontoor Brands, 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.
Kontoor Brands Investments |
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Kontoor Valuation Trend
Knowing Kontoor Brands' actual value is paramount for traders to make sound investment determinations. Kontoor Brands' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Kontoor Brands' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Kontoor Brands' 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.
Kontoor Valuation Data Drivers
Kontoor valuation ratios help to determine how cheap or expensive it is, compared to its peers or based on some benchmark measure of value for a given date. A typical valuation ratio shows the difference between the cost of Kontoor equity instrument and the benefits of owning shares of Kontoor Brands.
View More FundamentalsKontoor Market Cap
Kontoor Brands is rated second overall in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is now estimated at about 7.83 Billion. Kontoor Brands totals roughly 3.15 Billion in market capitalization claiming about 40% of stocks in Consumer Discretionary industry.Kontoor Brands Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Kontoor Brands's current stock value. Our valuation model uses many indicators to compare Kontoor Brands value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Kontoor Brands competition to find correlations between indicators driving Kontoor Brands's intrinsic value. More Info.Kontoor Brands is rated second overall in price to earning category among related companies. It is currently regarded as number one stock in price to book category among related companies fabricating about 0.92 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Kontoor Brands is roughly 1.09 . The current year's Price To Book Ratio is expected to grow to 11.99. Comparative valuation analysis is a catch-all model that can be used if you cannot value Kontoor Brands by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Kontoor Brands' 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 Kontoor Brands' 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 Kontoor Brands' 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 Kontoor Brands and how it compares across the competition.
About Kontoor Brands Valuation
The stock valuation mechanism determines the current worth of Kontoor Brands on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Kontoor Brands. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Kontoor Brands based exclusively on its fundamental and basic technical indicators. By analyzing Kontoor Brands'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 Kontoor Brands'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 Kontoor Brands. We calculate exposure to Kontoor Brands's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Kontoor Brands's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.1 B | 870 M | |
| Pretax Profit Margin | 0.14 | 0.11 | |
| Operating Profit Margin | 0.16 | 0.12 | |
| Net Profit Margin | 0.08 | 0.06 | |
| Gross Profit Margin | 0.39 | 0.34 |
8 Steps to conduct Kontoor Brands' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Kontoor Brands' 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 Kontoor Brands' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Kontoor Brands' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Kontoor Brands' revenue streams: Identify Kontoor Brands' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Kontoor Brands' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Kontoor Brands' growth potential: Evaluate Kontoor Brands' management, business model, and growth potential.
- Determine Kontoor Brands' 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 Kontoor Brands' 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 Kontoor Brands represents a small ownership stake in the entity. As a stockholder of Kontoor, 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.
Kontoor Brands Dividends Analysis For Valuation
At present, Kontoor Brands' Dividend Payout Ratio is projected to increase slightly based on the last few years of reporting. The current year's Dividend Paid And Capex Coverage Ratio is expected to grow to 1.05, whereas Dividends Paid is forecasted to decline to about 84.7 M. . At present, Kontoor Brands' Retained Earnings Total Equity is projected to increase significantly based on the last few years of reporting. The current year's Price Earnings Ratio is expected to grow to 13.56, whereas Retained Earnings are forecasted to decline to about 158.2 M.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 108.6 M | 84.7 M | |
| Dividend Yield | 0.04 | 0.03 | |
| Dividend Payout Ratio | 0.49 | 0.63 | |
| Dividend Paid And Capex Coverage Ratio | 1.00 | 1.05 |
There are various types of dividends Kontoor Brands 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 Kontoor 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 Kontoor Brands directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Kontoor pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Kontoor Brands by the value of the dividends paid out.
Kontoor Brands 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 Kontoor Brands 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 | 56.9 M | |
| Quarterly Earnings Growth Y O Y | 0.331 | |
| Forward Price Earnings | 11.4811 |
Kontoor Brands Current Valuation Indicators
Valuation refers to the process of determining the present value of Kontoor Brands and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Kontoor we look at many different elements of the entity such as Kontoor's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Kontoor Brands' 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 Kontoor Brands' 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 Kontoor Brands, 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 Kontoor Brands' 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 Kontoor Brands' worth.When determining whether Kontoor Brands offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Kontoor Brands' 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 Kontoor Brands Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Kontoor Brands Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Kontoor Brands. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate. For information on how to trade Kontoor Stock refer to our How to Trade Kontoor Stock guide.You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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When running Kontoor Brands' price analysis, check to measure Kontoor Brands' 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 Kontoor Brands is operating at the current time. Most of Kontoor Brands' value examination focuses on studying past and present price action to predict the probability of Kontoor Brands' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Kontoor Brands' price. Additionally, you may evaluate how the addition of Kontoor Brands to your portfolios can decrease your overall portfolio volatility.
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Is Kontoor Brands' 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 Kontoor Brands. If investors know Kontoor 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 Kontoor Brands 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 0.331 | Dividend Share 1.94 | Earnings Share 4.06 | Revenue Per Share 46.594 | Quarterly Revenue Growth (0.08) |
The market value of Kontoor Brands is measured differently than its book value, which is the value of Kontoor that is recorded on the company's balance sheet. Investors also form their own opinion of Kontoor Brands' value that differs from its market value or its book value, called intrinsic value, which is Kontoor Brands' 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 Kontoor Brands' market value can be influenced by many factors that don't directly affect Kontoor Brands' 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 Kontoor Brands' value and its price as these two are different measures arrived at by different means. Investors typically determine if Kontoor Brands is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Kontoor Brands' 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.