Aramark Holdings Valuation
| ARMK Stock | USD 32.10 0.15 0.47% |
At this time, the firm appears to be overvalued. Aramark Holdings shows a prevailing Real Value of $26.07 per share. The current price of the firm is $32.1. Our model approximates the value of Aramark Holdings from analyzing the firm fundamentals such as profit margin of 0.03 %, and Return On Equity of 0.22 as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor picking up undervalued instruments and discarding overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting Aramark Holdings' valuation include:
Price Book 2.9125 | Enterprise Value 14.3 B | Enterprise Value Ebitda 7.68 | Price Sales 0.4285 | Forward PE 20.2429 |
Overvalued
Today
Please note that Aramark Holdings' price fluctuation is very steady at this time. Calculation of the real value of Aramark Holdings is based on 3 months time horizon. Increasing Aramark Holdings' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Aramark Holdings is useful when determining the fair value of the Aramark stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Aramark Holdings. Since Aramark Holdings is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Aramark Stock. However, Aramark Holdings' 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 32.1 | Real 26.07 | Target 32.75 | Hype 32.1 | Naive 32.02 |
The real value of Aramark Stock, also known as its intrinsic value, is the underlying worth of Aramark Holdings Company, which is reflected in its stock price. It is based on Aramark Holdings' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Aramark Holdings' 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 Aramark Holdings' 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 Aramark Holdings helps investors to forecast how Aramark 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 Aramark Holdings more accurately as focusing exclusively on Aramark Holdings' 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 Aramark Holdings' intrinsic value based on its ongoing forecasts of Aramark Holdings' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Aramark Holdings' closest peers. When choosing an evaluation method for Aramark Holdings, 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.
Aramark Holdings Investments |
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Aramark Valuation Trend
Knowing Aramark Holdings' actual value is paramount for traders to make sound investment determinations. Aramark Holdings' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Aramark Holdings' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Aramark Holdings' 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.
Aramark Market Cap
Aramark Holdings is number one stock in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is presently estimated at about 40.06 Billion. Aramark Holdings totals roughly 8.42 Billion in market capitalization claiming about 21% of stocks in Consumer Discretionary industry.Aramark Holdings Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Aramark Holdings's current stock value. Our valuation model uses many indicators to compare Aramark Holdings value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Aramark Holdings competition to find correlations between indicators driving Aramark Holdings's intrinsic value. More Info.Aramark Holdings 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 fabricating about 0.04 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Aramark Holdings is roughly 22.81 . Price To Book Ratio is expected to rise to 2.96 this year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Aramark Holdings by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Aramark Holdings' 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 Aramark Holdings' 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 Aramark Holdings' 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 Aramark Holdings and how it compares across the competition.
About Aramark Holdings Valuation
The stock valuation mechanism determines the current worth of Aramark Holdings on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Aramark Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Aramark Holdings based exclusively on its fundamental and basic technical indicators. By analyzing Aramark Holdings'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 Aramark Holdings'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 Aramark Holdings. We calculate exposure to Aramark Holdings's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Aramark Holdings's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.1 B | 1.6 B | |
| Pretax Profit Margin | 0.02 | 0.01 | |
| Operating Profit Margin | 0.04 | 0.04 | |
| Net Profit Margin | 0.01 | 0.01 | |
| Gross Profit Margin | 0.1 | 0.11 |
8 Steps to conduct Aramark Holdings' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Aramark Holdings' 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 Aramark Holdings' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Aramark Holdings' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Aramark Holdings' revenue streams: Identify Aramark Holdings' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Aramark Holdings' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Aramark Holdings' growth potential: Evaluate Aramark Holdings' management, business model, and growth potential.
- Determine Aramark Holdings' 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 Aramark Holdings' 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 Aramark Holdings represents a small ownership stake in the entity. As a stockholder of Aramark, 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.
Aramark Holdings Dividends Analysis For Valuation
The value of Dividends Paid is estimated to slide to about 98 M. The value of Dividend Yield is estimated to slide to 0.02. At this time, Aramark Holdings' Retained Earnings are quite stable compared to the past year. Retained Earnings Total Equity is expected to rise to about 491.2 M this year, although the value of Earnings Yield will most likely fall to 0.03.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 103.2 M | 98 M | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.58 | 0.55 | |
| Dividend Paid And Capex Coverage Ratio | (2.76) | (2.90) |
There are various types of dividends Aramark Holdings 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 Aramark 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 Aramark Holdings directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Aramark pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Aramark Holdings by the value of the dividends paid out.
Aramark Holdings 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 Aramark Holdings 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 | 262.6 M | |
| Quarterly Earnings Growth Y O Y | -0.619 | |
| Forward Price Earnings | 20.2429 |
Aramark Holdings Current Valuation Indicators
Valuation refers to the process of determining the present value of Aramark Holdings and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Aramark we look at many different elements of the entity such as Aramark's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Aramark Holdings' 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 Aramark Holdings' 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 Aramark Holdings, 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 Aramark Holdings' 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 Aramark Holdings' worth.When determining whether Aramark Holdings is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Aramark Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Aramark Holdings Stock. Highlighted below are key reports to facilitate an investment decision about Aramark Holdings Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Aramark Holdings. 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. For more information on how to buy Aramark Stock please use our How to buy in Aramark Stock guide.You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
Complementary Tools for Aramark Stock analysis
When running Aramark Holdings' price analysis, check to measure Aramark Holdings' 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 Aramark Holdings is operating at the current time. Most of Aramark Holdings' value examination focuses on studying past and present price action to predict the probability of Aramark Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Aramark Holdings' price. Additionally, you may evaluate how the addition of Aramark Holdings to your portfolios can decrease your overall portfolio volatility.
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Is Aramark Holdings' 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 Aramark Holdings. If investors know Aramark 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 Aramark Holdings 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 (0.62) | Dividend Share 0.41 | Earnings Share 2.53 | Revenue Per Share 74.061 | Quarterly Revenue Growth 0.126 |
The market value of Aramark Holdings is measured differently than its book value, which is the value of Aramark that is recorded on the company's balance sheet. Investors also form their own opinion of Aramark Holdings' value that differs from its market value or its book value, called intrinsic value, which is Aramark Holdings' 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 Aramark Holdings' market value can be influenced by many factors that don't directly affect Aramark Holdings' 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 Aramark Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Aramark Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Aramark Holdings' 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.