Astec Industries Valuation

ASTE Stock  USD 40.01  0.63  1.55%   
At this time, the firm appears to be undervalued. Astec Industries shows a prevailing Real Value of $47.87 per share. The current price of the firm is $40.01. Our model approximates the value of Astec Industries from analyzing the firm fundamentals such as Return On Equity of 0.0526, current valuation of 942.57 M, and Profit Margin of 0.03 % 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.
Price Book
1.4156
Enterprise Value
942.6 M
Enterprise Value Ebitda
12.1937
Price Sales
0.6907
Trailing PE
27.6463
Undervalued
Today
40.01
Please note that Astec Industries' price fluctuation is very steady at this time. Calculation of the real value of Astec Industries is based on 3 months time horizon. Increasing Astec Industries' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Astec Industries is useful when determining the fair value of the Astec stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Astec Industries. Since Astec Industries is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Astec Stock. However, Astec Industries' 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  40.01 Real  47.87 Target  57.0 Hype  39.99 Naive  38.89
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.
47.87
Real Value
50.00
Upside
Estimating the potential upside or downside of Astec Industries helps investors to forecast how Astec 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 Astec Industries more accurately as focusing exclusively on Astec Industries' fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.790.861.03
Details
Hype
Prediction
LowEstimatedHigh
37.8639.9942.12
Details
Potential
Annual Dividend
LowForecastedHigh
0.330.340.34
Details
4 Analysts
Consensus
LowTarget PriceHigh
51.8757.0063.27
Details

Astec Industries Investments

(11.49 Million)

Astec Industries Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Astec Industries's current stock value. Our valuation model uses many indicators to compare Astec Industries value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Astec Industries competition to find correlations between indicators driving Astec Industries's intrinsic value. More Info.
Astec Industries is rated below average in last dividend paid category among related companies. It is rated below average in net asset category among related companies making up about  2,037,115,385  of Net Asset per Last Dividend Paid. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Astec Industries by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Astec Industries' 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 Astec Industries' 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 Astec Industries' 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 Astec Industries and how it compares across the competition.

About Astec Industries Valuation

The stock valuation mechanism determines the current worth of Astec Industries on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Astec Industries. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Astec Industries based exclusively on its fundamental and basic technical indicators. By analyzing Astec Industries'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 Astec Industries'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 Astec Industries. We calculate exposure to Astec Industries's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Astec Industries's related companies.
Last ReportedProjected for 2024
Gross Profit330.8 M347.3 M
Pretax Profit Margin 0.03  0.03 
Operating Profit Margin 0.04  0.06 
Net Profit Margin 0.03  0.02 
Gross Profit Margin 0.25  0.25 

8 Steps to conduct Astec Industries' Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Astec Industries' 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 Astec Industries' valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Astec Industries' financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Astec Industries' revenue streams: Identify Astec Industries' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Astec Industries' industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Astec Industries' growth potential: Evaluate Astec Industries' management, business model, and growth potential.
  • Determine Astec Industries' 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 Astec Industries' 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.
Astec Industries' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Astec Industries' value is low or high relative to the company's performance and growth projections. Determining the market value of Astec Industries can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Astec Industries represents a small ownership stake in the entity. As a stockholder of Astec, 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.

Astec Industries Dividends Analysis For Valuation

The current year's Dividend Payout Ratio is expected to grow to 0.37, whereas Dividends Paid is projected to grow to (11.2 M). . At present, Astec Industries' Price Earnings Ratio is projected to decrease significantly based on the last few years of reporting.
Last ReportedProjected for 2024
Dividends Paid-11.8 M-11.2 M
Dividend Yield 0.01  0.01 
Dividend Payout Ratio 0.35  0.37 
Dividend Paid And Capex Coverage Ratio(1.25)(1.31)
There are various types of dividends Astec Industries 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 Astec 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 Astec Industries directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Astec pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Astec Industries by the value of the dividends paid out.

Astec Industries 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 Astec Industries 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 Outstanding22.8 M
Quarterly Earnings Growth Y O Y1.945

Astec Industries Current Valuation Indicators

Valuation refers to the process of determining the present value of Astec Industries and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Astec we look at many different elements of the entity such as Astec's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Astec Industries' 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 Astec Industries' 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 Astec Industries, 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 Astec Industries' 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 Astec Industries' worth.
When determining whether Astec Industries is a strong investment it is important to analyze Astec Industries' 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 Astec Industries' future performance. For an informed investment choice regarding Astec Stock, refer to the following important reports:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Astec Industries. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate.
For information on how to trade Astec Stock refer to our How to Trade Astec Stock guide.
You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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When running Astec Industries' price analysis, check to measure Astec Industries' 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 Astec Industries is operating at the current time. Most of Astec Industries' value examination focuses on studying past and present price action to predict the probability of Astec Industries' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Astec Industries' price. Additionally, you may evaluate how the addition of Astec Industries to your portfolios can decrease your overall portfolio volatility.
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Is Astec Industries' 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 Astec Industries. If investors know Astec 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 Astec Industries 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
1.945
Dividend Share
0.52
Earnings Share
1.47
Revenue Per Share
58.9
Quarterly Revenue Growth
(0.04)
The market value of Astec Industries is measured differently than its book value, which is the value of Astec that is recorded on the company's balance sheet. Investors also form their own opinion of Astec Industries' value that differs from its market value or its book value, called intrinsic value, which is Astec Industries' 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 Astec Industries' market value can be influenced by many factors that don't directly affect Astec Industries' 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 Astec Industries' value and its price as these two are different measures arrived at by different means. Investors typically determine if Astec Industries is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Astec Industries' 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.