At this time, the firm appears to be fairly valued. American International shows a prevailing Real Value of $68.09 per share. The current price of the firm is $68.68. Our model approximates the value of American International from analyzing the firm fundamentals such as return on equity of 0.0819, and Profit Margin of 0.08 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor locking in undervalued instruments and disposing overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting American International's valuation include:
American International Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as American International's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.The American International's current Free Cash Flow is estimated to increase to about 6.7 B. The American International's current Enterprise Value is estimated to increase to about 72.8 B.
Please note that American International's price fluctuation is very steady at this time. Calculation of the real value of American International is based on 3 months time horizon. Increasing American International's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The real value of a stock, also known as the intrinsic value, is the underlying worth of a company that is reflected in its stock price. It is based on the company's financial performance, assets, liabilities, growth prospects, management team, industry conditions, and other relevant factors. The real value of a stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, price-to-book ratio, and other valuation metrics. The real value of a stock 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 the stock's price. It is important to note that the real value of a stock is not a fixed number and may change over time based on changes in the company's performance and other relevant factors.
Estimating the potential upside or downside of American International Group helps investors to forecast how American 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 American International more accurately as focusing exclusively on American International'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 American International's intrinsic value based on its ongoing forecasts of American International's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against American International's closest peers. When choosing an evaluation method for American International, 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.
American International Investments
American Valuation Drivers Correlation
Many accounts on the financial statements of American International are highly interrelated and sometimes correlated. Consequently, when conducting American's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of American
Click cells to compare fundamentals
American Valuation Trend
Knowing American International's actual value is paramount for traders to make sound investment determinations. American International's real value is not only important for the investor to make better decisions but also for a more accurate overall view of American International's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both American International'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.
American Market CapAmerican International Group is number one stock in market capitalization category among related companies. Market capitalization of Financials industry is presently estimated at about 697.54 Billion. American International holds roughly 46.39 Billion in market capitalization claiming about 7% of equities under Financials industry.
American International Valuation Ratios as Compared to CompetitionComparative valuation techniques use various fundamental indicators to help in determining American International's current stock value. Our valuation model uses many indicators to compare American International value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across American International competition to find correlations between indicators driving American International's intrinsic value. More Info. American International Group is number one stock in price to sales category among related companies. It is number one stock in price to book category among related companies fabricating about 1.04 of Price To Book per Price To Sales. Price to Book Value is estimated to decrease to 1.01. Comparative valuation analysis is a catch-all model that can be used if you cannot value American International by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for American International'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 American International'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 American International'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 American International and how it compares across the competition.
About American International ValuationThe stock valuation mechanism determines the current worth of American International Group on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of American International Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of American International based exclusively on its fundamental and basic technical indicators. By analyzing American International'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 American International'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 American International. We calculate exposure to American International's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to American International's related companies.
8 Steps to conduct American International's Valuation AnalysisCompany's valuation is the process of determining the worth of any company in monetary terms. It estimates American International'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 American International's valuation analysis, follow these 8 steps:
- Gather financial information: Obtain American International's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine American International's revenue streams: Identify American International's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research American International's industry and market trends, including the size of the market, growth rate, and competition.
- Establish American International's growth potential: Evaluate American International's management, business model, and growth potential.
- Determine American International'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 American International'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 American International represents a small ownership stake in the entity. As a stockholder of American, 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.
American International Dividends Analysis For Valuation
At this time, American International's Preferred Dividends Income Statement Impact is most likely to increase significantly in the upcoming years. The American International's current Dividend Yield is estimated to increase to 0.02, while Payment of Dividends and Other Cash Distributions is projected to decrease to (1.1 B). . At this time, American International's Earnings Before Interest Taxes and Depreciation Amortization EBITDA is most likely to decrease significantly in the upcoming years. The American International's current Earnings before Tax is estimated to increase to about 4.6 B, while Earnings per Basic Share is projected to decrease to 4.37.
|Projected for 2024
|Preferred Dividends Income Statement Impact
|Payment of Dividends and Other Cash Distributions
|Dividends per Basic Common Share
There are various types of dividends American International 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 American 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 American International Group directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When American pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of American International by the value of the dividends paid out.
American International 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 American International 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.
American International Current Valuation Indicators
Valuation refers to the process of determining the present value of American International Group and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value American we look at many different elements of the entity such as American's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. American International'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 American International'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 American International, 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 American International'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 American International's worth.When determining whether American International is a strong investment it is important to analyze American International'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 American International's future performance. For an informed investment choice regarding American Stock, refer to the following important reports:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American International Group. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product.You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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When running American International's price analysis, check to measure American International'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 American International is operating at the current time. Most of American International's value examination focuses on studying past and present price action to predict the probability of American International's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American International's price. Additionally, you may evaluate how the addition of American International to your portfolios can decrease your overall portfolio volatility.
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Is American International'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 American International. If investors know American 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 American International 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
Revenue Per Share
Quarterly Revenue Growth
The market value of American International is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American International's value that differs from its market value or its book value, called intrinsic value, which is American International'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 American International's market value can be influenced by many factors that don't directly affect American International'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 American International's value and its price as these two are different measures arrived at by different means. Investors typically determine if American International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American International'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.