Chesapeake Energy Valuation
| CHK Stock | USD 90.69 2.16 2.44% |
At this time, the firm appears to be undervalued. Chesapeake Energy Corp shows a prevailing Real Value of $99.24 per share. The current price of the firm is $90.69. Our model approximates the value of Chesapeake Energy Corp from analyzing the firm fundamentals such as return on equity of 0.24, and Profit Margin of 0.40 % 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 Chesapeake Energy's valuation include:
Price Book 1.08 | Enterprise Value 12.6 B | Enterprise Value Ebitda 2.6535 | Price Sales 1.9162 | Forward PE 31.4465 |
Undervalued
Today
Please note that Chesapeake Energy's price fluctuation is very steady at this time. Calculation of the real value of Chesapeake Energy Corp is based on 3 months time horizon. Increasing Chesapeake Energy's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Chesapeake Energy Corp is useful when determining the fair value of the Chesapeake stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Chesapeake Energy. Since Chesapeake Energy is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Chesapeake Stock. However, Chesapeake Energy'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 90.69 | Real 99.24 | Target 107.0 | Hype 88.53 | Naive 86.05 |
The real value of Chesapeake Stock, also known as its intrinsic value, is the underlying worth of Chesapeake Energy Corp Company, which is reflected in its stock price. It is based on Chesapeake Energy's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Chesapeake Energy'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 Chesapeake Energy'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 Chesapeake Energy Corp helps investors to forecast how Chesapeake 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 Chesapeake Energy more accurately as focusing exclusively on Chesapeake Energy'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 Chesapeake Energy's intrinsic value based on its ongoing forecasts of Chesapeake Energy's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Chesapeake Energy's closest peers. When choosing an evaluation method for Chesapeake Energy 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.
Chesapeake Energy Investments |
|
Chesapeake Valuation Trend
Knowing Chesapeake Energy's actual value is paramount for traders to make sound investment determinations. Chesapeake Energy's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Chesapeake Energy's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Chesapeake Energy'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.
Chesapeake Market Cap
Chesapeake Energy Corp is rated below average in market capitalization category among related companies. Market capitalization of Energy industry is currently estimated at about 524.15 Billion. Chesapeake Energy holds roughly 11.58 Billion in market capitalization claiming about 2.21% of equities under Energy industry.Chesapeake Energy Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Chesapeake Energy's current stock value. Our valuation model uses many indicators to compare Chesapeake Energy value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Chesapeake Energy competition to find correlations between indicators driving Chesapeake Energy's intrinsic value. More Info.Chesapeake Energy Corp is rated below average in price to earning category among related companies. It is rated below average in price to book category among related companies . The value of Price To Book Ratio is estimated to slide to 0.54. Comparative valuation analysis is a catch-all model that can be used if you cannot value Chesapeake Energy by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Chesapeake Energy'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 Chesapeake Energy'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 Chesapeake Energy'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 Chesapeake Energy and how it compares across the competition.
About Chesapeake Energy Valuation
The stock valuation mechanism determines the current worth of Chesapeake Energy Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Chesapeake Energy Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Chesapeake Energy Corp based exclusively on its fundamental and basic technical indicators. By analyzing Chesapeake Energy'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 Chesapeake Energy'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 Chesapeake Energy. We calculate exposure to Chesapeake Energy's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Chesapeake Energy's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 5 B | 2.5 B | |
| Pretax Profit Margin | 0.40 | 0.42 | |
| Operating Profit Margin | 0.40 | 0.42 | |
| Net Profit Margin | 0.31 | 0.33 | |
| Gross Profit Margin | 0.65 | 0.54 |
8 Steps to conduct Chesapeake Energy's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Chesapeake Energy'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 Chesapeake Energy's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Chesapeake Energy's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Chesapeake Energy's revenue streams: Identify Chesapeake Energy's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Chesapeake Energy's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Chesapeake Energy's growth potential: Evaluate Chesapeake Energy's management, business model, and growth potential.
- Determine Chesapeake Energy'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 Chesapeake Energy'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 Chesapeake Energy represents a small ownership stake in the entity. As a stockholder of Chesapeake, 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.
Chesapeake Energy Dividends Analysis For Valuation
Dividends Paid is expected to rise to about 511.4 M this year, although the value of Dividend Yield will most likely fall to 0.05. . At this time, Chesapeake Energy's Retained Earnings are quite stable compared to the past year. Retained Earnings Total Equity is expected to rise to about 3.2 B this year, although the value of Price Earnings To Growth Ratio is projected to rise to (0.08).
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 487 M | 511.4 M | |
| Dividend Yield | 0.05 | 0.05 | |
| Dividend Payout Ratio | 0.20 | 0.10 | |
| Dividend Paid And Capex Coverage Ratio | (1.77) | (1.68) |
There are various types of dividends Chesapeake Energy 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 Chesapeake 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 Chesapeake Energy Corp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Chesapeake pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Chesapeake Energy by the value of the dividends paid out.
Chesapeake Energy 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 Chesapeake Energy 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 | 143 M | |
| Quarterly Earnings Growth Y O Y | -0.833 | |
| Forward Price Earnings | 31.4465 |
Chesapeake Energy Current Valuation Indicators
Valuation refers to the process of determining the present value of Chesapeake Energy Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Chesapeake we look at many different elements of the entity such as Chesapeake's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Chesapeake Energy'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 Chesapeake Energy'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 Chesapeake Energy, 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 Chesapeake Energy'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 Chesapeake Energy's worth.When determining whether Chesapeake Energy Corp 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 Chesapeake 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 Chesapeake Energy Corp Stock. Highlighted below are key reports to facilitate an investment decision about Chesapeake Energy Corp Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Chesapeake Energy 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 rate. For more information on how to buy Chesapeake Stock please use our How to buy in Chesapeake Stock guide.Note that the Chesapeake Energy Corp information on this page should be used as a complementary analysis to other Chesapeake Energy's 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Complementary Tools for Chesapeake Stock analysis
When running Chesapeake Energy's price analysis, check to measure Chesapeake Energy'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 Chesapeake Energy is operating at the current time. Most of Chesapeake Energy's value examination focuses on studying past and present price action to predict the probability of Chesapeake Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Chesapeake Energy's price. Additionally, you may evaluate how the addition of Chesapeake Energy to your portfolios can decrease your overall portfolio volatility.
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |
Is Chesapeake Energy'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 Chesapeake Energy. If investors know Chesapeake 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 Chesapeake Energy 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 (0.83) | Dividend Share 3.62 | Earnings Share 16.92 | Revenue Per Share 45.521 | Quarterly Revenue Growth (0.59) |
The market value of Chesapeake Energy Corp is measured differently than its book value, which is the value of Chesapeake that is recorded on the company's balance sheet. Investors also form their own opinion of Chesapeake Energy's value that differs from its market value or its book value, called intrinsic value, which is Chesapeake Energy'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 Chesapeake Energy's market value can be influenced by many factors that don't directly affect Chesapeake Energy'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 Chesapeake Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Chesapeake Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chesapeake Energy'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.