CNH Industrial Valuation

CNHI Stock  USD 12.96  0.41  3.27%   
At this time, the firm appears to be undervalued. CNH Industrial NV shows a prevailing Real Value of $13.98 per share. The current price of the firm is $12.96. Our model approximates the value of CNH Industrial NV from reviewing the firm fundamentals such as Return On Equity of 0.31, operating margin of 0.11 %, and Profit Margin of 0.1 % as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors favor purchasing undervalued instruments and trading away overvalued instruments since, in the future, asset prices and their ongoing real values will blend.
Price Book
1.9262
Enterprise Value
38.9 B
Enterprise Value Ebitda
8.4417
Price Sales
0.6331
Forward PE
7.8927
Undervalued
Today
12.96
Please note that CNH Industrial's price fluctuation is not too volatile at this time. Calculation of the real value of CNH Industrial NV is based on 3 months time horizon. Increasing CNH Industrial's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for CNH Industrial NV is useful when determining the fair value of the CNH stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of CNH Industrial. Since CNH Industrial is currently traded on the exchange, buyers and sellers on that exchange determine the market value of CNH Stock. However, CNH Industrial'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  12.96 Real  13.98 Target  17.39 Hype  12.97 Naive  13.04
The real value of CNH Stock, also known as its intrinsic value, is the underlying worth of CNH Industrial NV Company, which is reflected in its stock price. It is based on CNH Industrial's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of CNH Industrial'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 CNH Industrial'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.
13.98
Real Value
15.69
Upside
Estimating the potential upside or downside of CNH Industrial NV helps investors to forecast how CNH 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 CNH Industrial more accurately as focusing exclusively on CNH Industrial's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.150.270.33
Details
Hype
Prediction
LowEstimatedHigh
11.2612.9714.68
Details
Potential
Annual Dividend
LowForecastedHigh
0.210.220.23
Details
20 Analysts
Consensus
LowTarget PriceHigh
15.8217.3919.30
Details

CNH Industrial Investments

(3.29 Billion)

CNH Industrial Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining CNH Industrial's current stock value. Our valuation model uses many indicators to compare CNH Industrial value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across CNH Industrial competition to find correlations between indicators driving CNH Industrial's intrinsic value. More Info.
CNH Industrial NV is rated fifth in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about  0.17  of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for CNH Industrial NV is roughly  6.04 . The CNH Industrial's current Price To Book Ratio is estimated to increase to 2.28. Comparative valuation analysis is a catch-all model that can be used if you cannot value CNH Industrial by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for CNH Industrial'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 CNH Industrial'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 CNH Industrial'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 CNH Industrial and how it compares across the competition.

About CNH Industrial Valuation

The stock valuation mechanism determines the current worth of CNH Industrial NV on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of CNH Industrial NV. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of CNH Industrial NV based exclusively on its fundamental and basic technical indicators. By analyzing CNH Industrial'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 CNH Industrial'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 CNH Industrial. We calculate exposure to CNH Industrial's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to CNH Industrial's related companies.
Last ReportedProjected for 2024
Gross Profit7.9 B7.2 B
Pretax Profit Margin 0.11  0.11 
Operating Profit Margin 0.20  0.21 
Net Profit Margin 0.1  0.10 
Gross Profit Margin 0.32  0.18 

CNH Industrial Quarterly Retained Earnings

9.75 Billion

8 Steps to conduct CNH Industrial's Valuation Analysis

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

CNH Industrial Dividends Analysis For Valuation

Please note that CNH Industrial has scaled down on payment of dividends at this time. The CNH Industrial's current Retained Earnings is estimated to increase to about 10.2 B. The CNH Industrial's current Price Earnings Ratio is estimated to increase to 12.35
There are various types of dividends CNH Industrial 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 CNH 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 CNH Industrial NV directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When CNH pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of CNH Industrial by the value of the dividends paid out.

CNH Industrial 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 CNH Industrial 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 Outstanding1.4 B
Quarterly Earnings Growth Y O Y0.065
Forward Price Earnings7.8927

CNH Industrial Current Valuation Indicators

Valuation refers to the process of determining the present value of CNH Industrial NV and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value CNH we look at many different elements of the entity such as CNH's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. CNH Industrial'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 CNH Industrial'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 CNH Industrial, 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 CNH Industrial'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 CNH Industrial's worth.
When determining whether CNH Industrial NV offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of CNH Industrial'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 Cnh Industrial Nv Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cnh Industrial Nv Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in CNH Industrial NV. 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.
Note that the CNH Industrial NV information on this page should be used as a complementary analysis to other CNH Industrial'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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

Complementary Tools for CNH Stock analysis

When running CNH Industrial's price analysis, check to measure CNH Industrial'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 CNH Industrial is operating at the current time. Most of CNH Industrial's value examination focuses on studying past and present price action to predict the probability of CNH Industrial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CNH Industrial's price. Additionally, you may evaluate how the addition of CNH Industrial to your portfolios can decrease your overall portfolio volatility.
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Is CNH Industrial'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 CNH Industrial. If investors know CNH 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 CNH Industrial 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
0.065
Earnings Share
1.76
Revenue Per Share
18.534
Quarterly Revenue Growth
(0.02)
Return On Assets
0.043
The market value of CNH Industrial NV is measured differently than its book value, which is the value of CNH that is recorded on the company's balance sheet. Investors also form their own opinion of CNH Industrial's value that differs from its market value or its book value, called intrinsic value, which is CNH Industrial'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 CNH Industrial's market value can be influenced by many factors that don't directly affect CNH Industrial'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 CNH Industrial's value and its price as these two are different measures arrived at by different means. Investors typically determine if CNH Industrial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CNH Industrial'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.