Olympic Steel Valuation
| ZEUS Stock | USD 67.46 0.46 0.68% |
At this time, the company appears to be overvalued. Olympic Steel holds a recent Real Value of $60.73 per share. The prevailing price of the company is $67.46. Our model determines the value of Olympic Steel from analyzing the company fundamentals such as Return On Equity of 0.0831, shares outstanding of 11.13 M, and Operating Margin of 0.03 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors support acquiring undervalued entities and selling overvalued entities since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting Olympic Steel's valuation include:
Price Book 1.37 | Enterprise Value 966.2 M | Enterprise Value Ebitda 9.2878 | Price Sales 0.3521 | Forward PE 20.0401 |
Overvalued
Today
Please note that Olympic Steel's price fluctuation is very steady at this time. Calculation of the real value of Olympic Steel is based on 3 months time horizon. Increasing Olympic Steel's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Olympic Steel is useful when determining the fair value of the Olympic stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Olympic Steel. Since Olympic Steel is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Olympic Stock. However, Olympic Steel'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 67.46 | Real 60.73 | Target 54.0 | Hype 67.5 |
The real value of Olympic Stock, also known as its intrinsic value, is the underlying worth of Olympic Steel Company, which is reflected in its stock price. It is based on Olympic Steel's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Olympic Steel'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 Olympic Steel'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 Olympic Steel helps investors to forecast how Olympic 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 Olympic Steel more accurately as focusing exclusively on Olympic Steel'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 Olympic Steel's intrinsic value based on its ongoing forecasts of Olympic Steel's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Olympic Steel's closest peers. When choosing an evaluation method for Olympic Steel, 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.
Olympic Steel Investments |
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Olympic Valuation Trend
Knowing Olympic Steel's actual value is paramount for traders to make sound investment determinations. Olympic Steel's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Olympic Steel's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Olympic Steel'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.
Olympic Market Cap
Olympic Steel is rated below average in market capitalization category among related companies. Market capitalization of Materials industry is at this time estimated at about 121.48 Billion. Olympic Steel maintains roughly 751 Million in market capitalization contributing less than 1% to all equities under Materials industry.Olympic Steel Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Olympic Steel's current stock value. Our valuation model uses many indicators to compare Olympic Steel value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Olympic Steel competition to find correlations between indicators driving Olympic Steel's intrinsic value. More Info.Olympic Steel 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 fabricating about 0.74 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Olympic Steel is roughly 1.35 . Price To Book Ratio is likely to drop to 0.95 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Olympic Steel by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Olympic Steel'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 Olympic Steel'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 Olympic Steel'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 Olympic Steel and how it compares across the competition.
About Olympic Steel Valuation
The stock valuation mechanism determines the current worth of Olympic Steel on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Olympic Steel. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Olympic Steel based exclusively on its fundamental and basic technical indicators. By analyzing Olympic Steel'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 Olympic Steel'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 Olympic Steel. We calculate exposure to Olympic Steel's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Olympic Steel's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 447.1 M | 235.8 M | |
| Pretax Profit Margin | 0.03 | 0.03 | |
| Operating Profit Margin | 0.04 | 0.02 | |
| Net Profit Margin | 0.02 | 0.02 | |
| Gross Profit Margin | 0.21 | 0.22 |
Olympic Steel Quarterly Retained Earnings |
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8 Steps to conduct Olympic Steel's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Olympic Steel'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 Olympic Steel's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Olympic Steel's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Olympic Steel's revenue streams: Identify Olympic Steel's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Olympic Steel's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Olympic Steel's growth potential: Evaluate Olympic Steel's management, business model, and growth potential.
- Determine Olympic Steel'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 Olympic Steel'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 Olympic Steel represents a small ownership stake in the entity. As a stockholder of Olympic, 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.
Olympic Steel Dividends Analysis For Valuation
Dividends Paid is likely to gain to about (5.3 M) in 2024. Dividend Yield is likely to drop to 0.01 in 2024. At this time, Olympic Steel's Retained Earnings are comparatively stable compared to the past year. Retained Earnings Total Equity is likely to gain to about 458.8 M in 2024, whereas Price Earnings Ratio is likely to drop 9.36 in 2024.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -5.6 M | -5.3 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.12 | 0.12 | |
| Dividend Paid And Capex Coverage Ratio | (11.01) | (10.46) |
There are various types of dividends Olympic Steel 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 Olympic 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 Olympic Steel directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Olympic pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Olympic Steel by the value of the dividends paid out.
Olympic Steel 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 Olympic Steel 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 | 11.6 M | |
| Quarterly Earnings Growth Y O Y | 0.867 | |
| Forward Price Earnings | 20.0401 |
Olympic Steel Current Valuation Indicators
Valuation refers to the process of determining the present value of Olympic Steel and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Olympic we look at many different elements of the entity such as Olympic's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Olympic Steel'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 Olympic Steel'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 Olympic Steel, 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 Olympic Steel'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 Olympic Steel's worth.When determining whether Olympic Steel is a strong investment it is important to analyze Olympic Steel'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 Olympic Steel's future performance. For an informed investment choice regarding Olympic Stock, refer to the following important reports: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Olympic Steel. 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 Olympic Stock please use our How to Invest in Olympic Steel guide.You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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When running Olympic Steel's price analysis, check to measure Olympic Steel'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 Olympic Steel is operating at the current time. Most of Olympic Steel's value examination focuses on studying past and present price action to predict the probability of Olympic Steel's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Olympic Steel's price. Additionally, you may evaluate how the addition of Olympic Steel to your portfolios can decrease your overall portfolio volatility.
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Is Olympic Steel'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 Olympic Steel. If investors know Olympic 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 Olympic Steel 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 0.867 | Dividend Share 0.5 | Earnings Share 3.85 | Revenue Per Share 186.483 | Quarterly Revenue Growth (0.06) |
The market value of Olympic Steel is measured differently than its book value, which is the value of Olympic that is recorded on the company's balance sheet. Investors also form their own opinion of Olympic Steel's value that differs from its market value or its book value, called intrinsic value, which is Olympic Steel'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 Olympic Steel's market value can be influenced by many factors that don't directly affect Olympic Steel'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 Olympic Steel's value and its price as these two are different measures arrived at by different means. Investors typically determine if Olympic Steel is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Olympic Steel'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.