Smith AO Valuation
| AOS Stock | USD 87.00 0.92 1.05% |
At this time, the company appears to be overvalued. Smith AO has a current Real Value of $80.11 per share. The regular price of the company is $87.0. Our model measures the value of Smith AO from inspecting the company fundamentals such as Operating Margin of 0.17 %, return on equity of 0.31, and Shares Outstanding of 121.18 M as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend acquiring undervalued stocks and selling overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other. Key fundamental drivers impacting Smith AO's valuation include:
Price Book 6.8971 | Enterprise Value 12.6 B | Enterprise Value Ebitda 15.1891 | Price Sales 3.3017 | Forward PE 21.3675 |
Overvalued
Today
Please note that Smith AO's price fluctuation is very steady at this time. Calculation of the real value of Smith AO is based on 3 months time horizon. Increasing Smith AO's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Smith AO is useful when determining the fair value of the Smith stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Smith AO. Since Smith AO is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Smith Stock. However, Smith AO'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 87.0 | Real 80.11 | Target 75.0 | Hype 86.96 | Naive 88.39 |
The real value of Smith Stock, also known as its intrinsic value, is the underlying worth of Smith AO Company, which is reflected in its stock price. It is based on Smith AO's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Smith AO'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 Smith AO'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 Smith AO helps investors to forecast how Smith 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 Smith AO more accurately as focusing exclusively on Smith AO'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 Smith AO's intrinsic value based on its ongoing forecasts of Smith AO's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Smith AO's closest peers. When choosing an evaluation method for Smith AO, 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.
Smith AO Investments |
|
Smith Valuation Trend
Knowing Smith AO's actual value is paramount for traders to make sound investment determinations. Smith AO's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Smith AO's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Smith AO'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.
Smith Market Cap
Smith AO is rated below average in market capitalization category among related companies. Market capitalization of Industrials industry is presently estimated at about 474.62 Billion. Smith AO holds roughly 12.93 Billion in market capitalization claiming about 2.72% of equities under Industrials industry.Smith AO Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Smith AO's current stock value. Our valuation model uses many indicators to compare Smith AO value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Smith AO competition to find correlations between indicators driving Smith AO's intrinsic value. More Info.Smith AO is rated below average in price to earning category among related companies. It is rated second in price to book category among related companies fabricating about 0.36 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Smith AO is roughly 2.80 . Price To Book Ratio is likely to gain to 7.04 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Smith AO by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Smith AO'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 Smith AO'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 Smith AO'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 Smith AO and how it compares across the competition.
About Smith AO Valuation
The stock valuation mechanism determines the current worth of Smith AO on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Smith AO. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Smith AO based exclusively on its fundamental and basic technical indicators. By analyzing Smith AO'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 Smith AO'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 Smith AO. We calculate exposure to Smith AO's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Smith AO's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.5 B | 1.6 B | |
| Pretax Profit Margin | 0.19 | 0.20 | |
| Operating Profit Margin | 0.20 | 0.21 | |
| Net Profit Margin | 0.14 | 0.15 | |
| Gross Profit Margin | 0.39 | 0.20 |
Smith AO Quarterly Retained Earnings |
|
8 Steps to conduct Smith AO's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Smith AO'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 Smith AO's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Smith AO's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Smith AO's revenue streams: Identify Smith AO's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Smith AO's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Smith AO's growth potential: Evaluate Smith AO's management, business model, and growth potential.
- Determine Smith AO'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 Smith AO'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 Smith AO represents a small ownership stake in the entity. As a stockholder of Smith, 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.
Smith AO Dividends Analysis For Valuation
Dividends Paid is likely to gain to about 192.7 M in 2024. Dividend Yield is likely to gain to 0.02 in 2024. At this time, Smith AO's Retained Earnings are comparatively stable compared to the past year. Earnings Yield is likely to gain to 0.07 in 2024, whereas Retained Earnings Total Equity is likely to drop slightly above 1.8 B in 2024.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 183.5 M | 192.7 M | |
| Dividend Yield | 0.01 | 0.02 | |
| Dividend Payout Ratio | 0.33 | 0.37 | |
| Dividend Paid And Capex Coverage Ratio | 6.04 | 6.35 |
There are various types of dividends Smith AO 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 Smith 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 Smith AO directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Smith pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Smith AO by the value of the dividends paid out.
Smith AO 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 Smith AO 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 | 151 M | |
| Quarterly Earnings Growth Y O Y | 0.268 | |
| Forward Price Earnings | 21.3675 |
Smith AO Current Valuation Indicators
Valuation refers to the process of determining the present value of Smith AO and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Smith we look at many different elements of the entity such as Smith's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Smith AO'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 Smith AO'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 Smith AO, 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 Smith AO'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 Smith AO's worth.When determining whether Smith AO is a strong investment it is important to analyze Smith AO'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 Smith AO's future performance. For an informed investment choice regarding Smith Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Smith AO. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in persons. For more information on how to buy Smith Stock please use our How to Invest in Smith AO guide.You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Complementary Tools for Smith Stock analysis
When running Smith AO's price analysis, check to measure Smith AO'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 Smith AO is operating at the current time. Most of Smith AO's value examination focuses on studying past and present price action to predict the probability of Smith AO's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Smith AO's price. Additionally, you may evaluate how the addition of Smith AO to your portfolios can decrease your overall portfolio volatility.
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |
Is Smith AO'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 Smith AO. If investors know Smith 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 Smith AO 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 0.268 | Dividend Share 1.22 | Earnings Share 3.69 | Revenue Per Share 25.693 | Quarterly Revenue Growth 0.056 |
The market value of Smith AO is measured differently than its book value, which is the value of Smith that is recorded on the company's balance sheet. Investors also form their own opinion of Smith AO's value that differs from its market value or its book value, called intrinsic value, which is Smith AO'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 Smith AO's market value can be influenced by many factors that don't directly affect Smith AO'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 Smith AO's value and its price as these two are different measures arrived at by different means. Investors typically determine if Smith AO is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Smith AO'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.