American Mutual Fund Valuation

CDWFX -  USA Fund  

USD 11.62  0.05  0.43%

Do you wonder what the value of American Funds Developing is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as American Funds, is its stock price multiplied by the total number of shares outstanding, calculating American Funds' enterprise value requires a different approach. It uses American Funds' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
American Funds Developing shows a prevailing Real Value of $11.83 per share. The current price of the fund is $11.62. At this time, the entity appears to be fairly valued. We determine the value of American Funds Developing from analyzing fund fundamentals and technical indicators as well as its Probability Of Bankruptcy. In general, we favor acquiring undervalued instruments and dropping overvalued instruments since, at some point, stock prices and their ongoing real values will blend.

American Valuation 

 
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American Funds Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as American Funds's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Fairly Valued
Today 11.62
Share
Please note that American Funds' price fluctuation is very steady at this time.
American Funds Developing shows a prevailing Real Value of $11.83 per share. The current price of the fund is $11.62. At this time, the entity appears to be fairly valued. We determine the value of American Funds Developing from analyzing fund fundamentals and technical indicators as well as its Probability Of Bankruptcy. In general, we favor acquiring undervalued instruments and dropping overvalued instruments since, at some point, stock prices and their ongoing real values will blend.
Our valuation method for American Funds Developing is useful when determining the fair value of the American mutual fund, which is usually determined by what a typical buyer is willing to pay for full or partial control of American Funds. Since American Funds is currently traded on the exchange, buyers and sellers on that exchange determine the market value of American Mutual Fund. However, American Funds' 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.
11.83
Real Value
12.77
Upside
Estimating the potential upside or downside of American Funds Developing helps investors to forecast how American mutual fund'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 Funds more accurately as focusing exclusively on American Funds' fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
10.7712.1813.59
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Hype
Prediction
LowEstimated ValueHigh
10.7111.6512.59
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.080.080.08
Details

American Funds Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining American Funds's current stock value. Our valuation model uses many indicators to compare American Funds value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across American Funds competition to find correlations between indicators driving American Funds's intrinsic value. More Info.
American Funds Developing is third largest fund in one year return among similar funds. It is third largest fund in bond positions weight among similar funds . . Comparative valuation analysis is a catch-all model that can be used if you cannot value American Funds by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for American Funds' Mutual Fund . 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 Funds' earnings, one of the primary drivers of an investment's value.

About American Funds Valuation

The equity valuation mechanism determines the current worth of American Funds Developing on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of American Funds Developing. In general, an absolute valuation paradigm, as applied to this mutual fund, attempts to find the value of American Funds Developing based exclusively on its fundamental and basic technical indicators. By analyzing American Funds'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 Funds'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 Funds. We calculate exposure to American Funds's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to American Funds's related companies.
The investment seeks long-term growth of capital while providing current income. American Funds is traded on NASDAQ Exchange in the United States.
American Funds' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether American Funds' value is low or high relative to the company's performance and growth projections. Determining the market value of American Funds can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of American Funds 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 Funds Dividends Analysis For Valuation

There are various types of dividends American Funds 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 Funds Developing 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 Funds by the value of the dividends paid out.

American Funds Valuation Growth Rates

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 Funds 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.
Annual Report Expense Ratio1.31%
Continue to Trending Equities. Note that the American Funds Developing information on this page should be used as a complementary analysis to other American Funds' 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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Please note, there is a significant difference between American Funds' value and its price as these two are different measures arrived at by different means. Investors typically determine American Funds value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Funds' 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.