American Homes Valuation

AMH Stock  USD 36.25  0.63  1.77%   
At this time, the firm appears to be fairly valued. American Homes 4 shows a prevailing Real Value of $36.61 per share. The current price of the firm is $36.25. Our model approximates the value of American Homes 4 from analyzing the firm fundamentals such as profit margin of 0.23 %, and Return On Equity of 0.0583 as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor purchasing undervalued instruments and trading away overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Price Book
1.8718
Enterprise Value
17.5 B
Enterprise Value Ebitda
16.9718
Price Sales
9.3049
Forward PE
44.843
Fairly Valued
Today
36.25
Please note that American Homes' price fluctuation is very steady at this time. Calculation of the real value of American Homes 4 is based on 3 months time horizon. Increasing American Homes' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for American Homes 4 is useful when determining the fair value of the American stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of American Homes. Since American Homes is currently traded on the exchange, buyers and sellers on that exchange determine the market value of American Stock. However, American Homes' 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  36.25 Real  36.61 Target  37.39 Hype  36.25 Naive  35.5
The real value of American Stock, also known as its intrinsic value, is the underlying worth of American Homes 4 Company, which is reflected in its stock price. It is based on American Homes' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of American Homes' 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 American Homes' 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.
36.61
Real Value
37.76
Upside
Estimating the potential upside or downside of American Homes 4 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 Homes more accurately as focusing exclusively on American Homes' fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.110.150.23
Details
Hype
Prediction
LowEstimatedHigh
35.1036.2537.40
Details
Potential
Annual Dividend
LowForecastedHigh
0.520.530.54
Details
22 Analysts
Consensus
LowTarget PriceHigh
34.0237.3941.50
Details

American Homes Investments

(592.01 Million)

American Homes Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining American Homes's current stock value. Our valuation model uses many indicators to compare American Homes value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across American Homes competition to find correlations between indicators driving American Homes's intrinsic value. More Info.
American Homes 4 is number one stock in last dividend paid category among related companies. It is number one stock in price to earning category among related companies reporting about  133.36  of Price To Earning per Last Dividend Paid. . Comparative valuation analysis is a catch-all model that can be used if you cannot value American Homes by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for American Homes' 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 Homes' 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 Homes' 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 Homes and how it compares across the competition.

About American Homes Valuation

The stock valuation mechanism determines the current worth of American Homes 4 on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of American Homes 4. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of American Homes 4 based exclusively on its fundamental and basic technical indicators. By analyzing American Homes'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 Homes'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 Homes. We calculate exposure to American Homes's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to American Homes's related companies.
Last ReportedProjected for 2024
Gross Profit467.8 M504.2 M
Pretax Profit Margin 0.26  0.28 
Operating Profit Margin 0.21  0.23 
Net Profit Margin 0.23  0.24 
Gross Profit Margin 0.28  0.39 

8 Steps to conduct American Homes' Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates American Homes' 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 Homes' valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain American Homes' financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine American Homes' revenue streams: Identify American Homes' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research American Homes' industry and market trends, including the size of the market, growth rate, and competition.
  • Establish American Homes' growth potential: Evaluate American Homes' management, business model, and growth potential.
  • Determine American Homes' 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 Homes' estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
American Homes' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether American Homes' value is low or high relative to the company's performance and growth projections. Determining the market value of American Homes can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of American Homes 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 Homes Dividends Analysis For Valuation

The American Homes' current Dividends Paid is estimated to increase to about (316.8 M). The current Dividend Yield is estimated to decrease to 0.01. The American Homes' current Price Earnings To Growth Ratio is estimated to increase to 0.35, while Retained Earnings are projected to decrease to (414.7 M).
Last ReportedProjected for 2024
Dividends Paid-333.4 M-316.8 M
Dividend Yield 0.03  0.01 
Dividend Payout Ratio 0.88  0.83 
Dividend Paid And Capex Coverage Ratio 6.53  5.74 
There are various types of dividends American Homes 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 Homes 4 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 Homes by the value of the dividends paid out.

American Homes 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 Homes 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 Outstanding362.5 M
Quarterly Earnings Growth Y O Y-0.12
Forward Price Earnings44.843

American Homes Current Valuation Indicators

Valuation refers to the process of determining the present value of American Homes 4 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 Homes' 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 Homes' 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 Homes, 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 Homes' 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 Homes' worth.
When determining whether American Homes 4 offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of American Homes' 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 American Homes 4 Stock. Outlined below are crucial reports that will aid in making a well-informed decision on American Homes 4 Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Homes 4. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.
You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

Complementary Tools for American Stock analysis

When running American Homes' price analysis, check to measure American Homes' 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 Homes is operating at the current time. Most of American Homes' value examination focuses on studying past and present price action to predict the probability of American Homes' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Homes' price. Additionally, you may evaluate how the addition of American Homes to your portfolios can decrease your overall portfolio volatility.
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Is American Homes' 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 Homes. 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 Homes 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
(0.12)
Dividend Share
0.88
Earnings Share
1.01
Revenue Per Share
4.485
Quarterly Revenue Growth
0.073
The market value of American Homes 4 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 Homes' value that differs from its market value or its book value, called intrinsic value, which is American Homes' 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 Homes' market value can be influenced by many factors that don't directly affect American Homes' 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 Homes' value and its price as these two are different measures arrived at by different means. Investors typically determine if American Homes is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Homes' 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.