Cognex Valuation
| CGNX Stock | USD 39.17 0.71 1.85% |
At this time, the firm appears to be undervalued. Cognex shows a prevailing Real Value of $45.94 per share. The current price of the firm is $39.17. Our model approximates the value of Cognex from analyzing the firm fundamentals such as Return On Equity of 0.077, current valuation of 6.35 B, and Profit Margin of 0.14 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor acquiring undervalued instruments and dropping overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting Cognex's valuation include:
Price Book 4.5983 | Enterprise Value 6.3 B | Enterprise Value Ebitda 46.1039 | Price Sales 8.2572 | Forward PE 42.0168 |
Undervalued
Today
Please note that Cognex's price fluctuation is very steady at this time. Calculation of the real value of Cognex is based on 3 months time horizon. Increasing Cognex's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Cognex is useful when determining the fair value of the Cognex stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Cognex. Since Cognex is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Cognex Stock. However, Cognex'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 39.17 | Real 45.94 | Target 52.86 | Hype 39.18 |
The real value of Cognex Stock, also known as its intrinsic value, is the underlying worth of Cognex Company, which is reflected in its stock price. It is based on Cognex's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Cognex'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 Cognex'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 Cognex helps investors to forecast how Cognex 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 Cognex more accurately as focusing exclusively on Cognex'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 Cognex's intrinsic value based on its ongoing forecasts of Cognex's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Cognex's closest peers. When choosing an evaluation method for Cognex, 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.
Cognex Investments |
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Cognex Valuation Trend
Knowing Cognex's actual value is paramount for traders to make sound investment determinations. Cognex's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Cognex's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Cognex'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.
Cognex Market Cap
Cognex is rated second in market capitalization category among related companies. Market capitalization of Information Technology industry is currently estimated at about 16.55 Billion. Cognex totals roughly 6.61 Billion in market capitalization claiming about 40% of equities under Information Technology industry.Cognex Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Cognex's current stock value. Our valuation model uses many indicators to compare Cognex value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Cognex competition to find correlations between indicators driving Cognex's intrinsic value. More Info.Cognex is rated second in price to earning category among related companies. It is number one stock in price to book category among related companies fabricating about 0.09 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Cognex is roughly 10.69 . Price To Book Ratio is likely to drop to 3.73 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Cognex by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Cognex'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 Cognex'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 Cognex'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 Cognex and how it compares across the competition.
About Cognex Valuation
The stock valuation mechanism determines the current worth of Cognex on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Cognex. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Cognex based exclusively on its fundamental and basic technical indicators. By analyzing Cognex'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 Cognex'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 Cognex. We calculate exposure to Cognex's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Cognex's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 601.2 M | 631.3 M | |
| Pretax Profit Margin | 0.16 | 0.28 | |
| Operating Profit Margin | 0.16 | 0.25 | |
| Net Profit Margin | 0.14 | 0.16 | |
| Gross Profit Margin | 0.72 | 0.83 |
Cognex Quarterly Retained Earnings |
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8 Steps to conduct Cognex's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Cognex'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 Cognex's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Cognex's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Cognex's revenue streams: Identify Cognex's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Cognex's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Cognex's growth potential: Evaluate Cognex's management, business model, and growth potential.
- Determine Cognex'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 Cognex'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 Cognex represents a small ownership stake in the entity. As a stockholder of Cognex, 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.
Cognex Dividends Analysis For Valuation
Dividend Yield is likely to rise to 0.01 in 2024, whereas Dividends Paid is likely to drop slightly above 45.7 M in 2024. . Price Earnings Ratio is likely to rise to 66.67 in 2024, whereas Retained Earnings are likely to drop slightly above 357.8 M in 2024.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 49.1 M | 45.7 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.43 | 0.22 | |
| Dividend Paid And Capex Coverage Ratio | 4.34 | 4.13 |
There are various types of dividends Cognex 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 Cognex 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 Cognex directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Cognex pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Cognex by the value of the dividends paid out.
Cognex 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 Cognex 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 | 173.4 M | |
| Quarterly Earnings Growth Y O Y | -0.814 | |
| Forward Price Earnings | 42.0168 |
Cognex Current Valuation Indicators
Valuation refers to the process of determining the present value of Cognex and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Cognex we look at many different elements of the entity such as Cognex's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Cognex'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 Cognex'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 Cognex, 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 Cognex'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 Cognex's worth.When determining whether Cognex offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Cognex's 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 Cognex Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cognex Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cognex. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. For more information on how to buy Cognex Stock please use our How to Invest in Cognex guide.You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
Complementary Tools for Cognex Stock analysis
When running Cognex's price analysis, check to measure Cognex'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 Cognex is operating at the current time. Most of Cognex's value examination focuses on studying past and present price action to predict the probability of Cognex's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cognex's price. Additionally, you may evaluate how the addition of Cognex to your portfolios can decrease your overall portfolio volatility.
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Is Cognex'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 Cognex. If investors know Cognex 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 Cognex 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 (0.81) | Dividend Share 0.285 | Earnings Share 0.65 | Revenue Per Share 4.862 | Quarterly Revenue Growth (0.18) |
The market value of Cognex is measured differently than its book value, which is the value of Cognex that is recorded on the company's balance sheet. Investors also form their own opinion of Cognex's value that differs from its market value or its book value, called intrinsic value, which is Cognex'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 Cognex's market value can be influenced by many factors that don't directly affect Cognex'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 Cognex's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cognex is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cognex'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.