American Resources Valuation
| AREC Stock | USD 1.44 0.02 1.41% |
Based on Macroaxis valuation methodology, the firm appears to be undervalued. American Resources Corp shows a prevailing Real Value of $2.09 per share. The current price of the firm is $1.44. Our model approximates the value of American Resources Corp from analyzing the firm fundamentals such as return on equity of -45.05, and Profit Margin of (0.68) % as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor purchasing undervalued instruments and exiting overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting American Resources' valuation include:
Price Book 8.4978 | Enterprise Value 169.2 M | Enterprise Value Ebitda 15.5951 | Price Sales 7.4053 | Forward PE 36.7647 |
Undervalued
Today
Please note that American Resources' price fluctuation is very risky at this time. Calculation of the real value of American Resources Corp is based on 3 months time horizon. Increasing American Resources' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for American Resources Corp 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 Resources. Since American Resources is currently traded on the exchange, buyers and sellers on that exchange determine the market value of American Stock. However, American Resources' 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 1.44 | Real 2.09 | Target 4.25 | Hype 1.44 | Naive 1.5 |
The real value of American Stock, also known as its intrinsic value, is the underlying worth of American Resources Corp Company, which is reflected in its stock price. It is based on American Resources' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of American Resources' 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 Resources' 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 American Resources Corp 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 Resources more accurately as focusing exclusively on American Resources' 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 Resources' intrinsic value based on its ongoing forecasts of American Resources' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against American Resources' closest peers. When choosing an evaluation method for American Resources Corp, 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 Resources Investments |
|
American Valuation Trend
Knowing American Resources' actual value is paramount for traders to make sound investment determinations. American Resources' real value is not only important for the investor to make better decisions but also for a more accurate overall view of American Resources' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both American Resources' 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 Cap
American Resources Corp is number one stock in market capitalization category among related companies. Market capitalization of Energy industry is presently estimated at about 276.89 Million. American Resources totals roughly 114.02 Million in market capitalization claiming about 41% of equities under Energy industry.American Resources Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining American Resources's current stock value. Our valuation model uses many indicators to compare American Resources value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across American Resources competition to find correlations between indicators driving American Resources's intrinsic value. More Info.American Resources Corp is number one stock in price to earning category among related companies. It is number one stock in price to book category among related companies . The current year's Price To Book Ratio is expected to grow to 527.15. Comparative valuation analysis is a catch-all model that can be used if you cannot value American Resources by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for American Resources' 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 Resources' 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 Resources' 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 Resources and how it compares across the competition.
About American Resources Valuation
The stock valuation mechanism determines the current worth of American Resources Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of American Resources Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of American Resources Corp based exclusively on its fundamental and basic technical indicators. By analyzing American Resources'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 Resources'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 Resources. We calculate exposure to American Resources's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to American Resources's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 112.1 K | 106.5 K | |
| Pretax Profit Margin | (0.68) | (0.72) | |
| Operating Profit Margin | (1.19) | (1.25) | |
| Net Loss | (0.68) | (0.72) | |
| Gross Profit Margin | 0.01 | 0.01 |
8 Steps to conduct American Resources' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates American Resources' 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 Resources' valuation analysis, follow these 8 steps:- Gather financial information: Obtain American Resources' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine American Resources' revenue streams: Identify American Resources' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research American Resources' industry and market trends, including the size of the market, growth rate, and competition.
- Establish American Resources' growth potential: Evaluate American Resources' management, business model, and growth potential.
- Determine American Resources' 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 Resources' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
American Resources 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 Resources 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 | 75.4 M | |
| Forward Price Earnings | 36.7647 |
American Resources Current Valuation Indicators
Valuation refers to the process of determining the present value of American Resources Corp 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 Resources' 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 Resources' 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 Resources, 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 Resources' 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 Resources' worth.When determining whether American Resources Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of American Resources' 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 Resources Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on American Resources Corp Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Resources Corp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in income. Note that the American Resources Corp information on this page should be used as a complementary analysis to other American Resources' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Complementary Tools for American Stock analysis
When running American Resources' price analysis, check to measure American Resources' 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 Resources is operating at the current time. Most of American Resources' value examination focuses on studying past and present price action to predict the probability of American Resources' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Resources' price. Additionally, you may evaluate how the addition of American Resources to your portfolios can decrease your overall portfolio volatility.
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| 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 | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |
Is American Resources' 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 Resources. 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 Resources listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.15) | Revenue Per Share 0.222 | Quarterly Revenue Growth (0.99) | Return On Assets (0.17) | Return On Equity (45.05) |
The market value of American Resources Corp 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 Resources' value that differs from its market value or its book value, called intrinsic value, which is American Resources' 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 Resources' market value can be influenced by many factors that don't directly affect American Resources' 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 Resources' value and its price as these two are different measures arrived at by different means. Investors typically determine if American Resources is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Resources' 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.