CTS Valuation
| CTS Stock | USD 45.49 1.72 3.93% |
At this time, the firm appears to be overvalued. CTS Corporation shows a prevailing Real Value of $37.57 per share. The current price of the firm is $45.49. Our model approximates the value of CTS Corporation from analyzing the firm fundamentals such as return on equity of 0.12, and Profit Margin of 0.11 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor acquiring undervalued instruments and selling overvalued instruments since, at some point future time, asset prices and their ongoing real values will blend.
Overvalued
Today
Please note that CTS's price fluctuation is very steady at this time. Calculation of the real value of CTS Corporation is based on 3 months time horizon. Increasing CTS's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for CTS Corporation is useful when determining the fair value of the CTS stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of CTS. Since CTS is currently traded on the exchange, buyers and sellers on that exchange determine the market value of CTS Stock. However, CTS'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 45.49 | Real 37.57 | Hype 45.49 | Naive 44.11 |
The real value of CTS Stock, also known as its intrinsic value, is the underlying worth of CTS Corporation Company, which is reflected in its stock price. It is based on CTS's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of CTS'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 CTS'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 CTS Corporation helps investors to forecast how CTS 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 CTS more accurately as focusing exclusively on CTS's fundamentals will not take into account other important factors: CTS Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining CTS's current stock value. Our valuation model uses many indicators to compare CTS value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across CTS competition to find correlations between indicators driving CTS's intrinsic value. More Info.CTS Corporation is number one stock in price to earning category among related companies. It is rated fourth in price to book category among related companies fabricating about 0.08 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for CTS Corporation is roughly 12.10 . Comparative valuation analysis is a catch-all model that can be used if you cannot value CTS by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for CTS'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 CTS'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 CTS'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 CTS and how it compares across the competition.
About CTS Valuation
The stock valuation mechanism determines the current worth of CTS Corporation on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of CTS Corporation. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of CTS Corporation based exclusively on its fundamental and basic technical indicators. By analyzing CTS'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 CTS'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 CTS. We calculate exposure to CTS's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to CTS's related companies.CTS Corporation manufactures and sells sensors, actuators, and connectivity components in North America, Europe, and Asia. CTS Corporation was founded in 1896 and is headquartered in Lisle, Illinois. Cts Corp operates under Electronic Components classification in the United States and is traded on New York Stock Exchange. It employs 3820 people.
8 Steps to conduct CTS's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates CTS'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 CTS's valuation analysis, follow these 8 steps:- Gather financial information: Obtain CTS's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine CTS's revenue streams: Identify CTS's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research CTS's industry and market trends, including the size of the market, growth rate, and competition.
- Establish CTS's growth potential: Evaluate CTS's management, business model, and growth potential.
- Determine CTS'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 CTS'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 CTS represents a small ownership stake in the entity. As a stockholder of CTS, 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.
CTS Dividends Analysis For Valuation
There are various types of dividends CTS 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 CTS 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 CTS Corporation directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When CTS pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of CTS by the value of the dividends paid out.
CTS 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 CTS 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 | 31.6 M | |
| Quarterly Earnings Growth Y O Y | 0.044 | |
| Forward Price Earnings | 14.3678 |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in CTS Corporation. 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. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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When running CTS's price analysis, check to measure CTS'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 CTS is operating at the current time. Most of CTS's value examination focuses on studying past and present price action to predict the probability of CTS's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CTS's price. Additionally, you may evaluate how the addition of CTS to your portfolios can decrease your overall portfolio volatility.
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Is CTS'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 CTS. If investors know CTS 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 CTS listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of CTS Corporation is measured differently than its book value, which is the value of CTS that is recorded on the company's balance sheet. Investors also form their own opinion of CTS's value that differs from its market value or its book value, called intrinsic value, which is CTS'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 CTS's market value can be influenced by many factors that don't directly affect CTS'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 CTS's value and its price as these two are different measures arrived at by different means. Investors typically determine if CTS is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CTS'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.