Diamond Hill Valuation
| DHIL Stock | USD 150.83 2.43 1.64% |
At this time, the firm appears to be fairly valued. Diamond Hill Investment shows a prevailing Real Value of $151.41 per share. The current price of the firm is $150.83. Our model computes the value of Diamond Hill Investment from reviewing the firm fundamentals such as Operating Margin of 0.13 %, profit margin of 0.31 %, and Current Valuation of 378.22 M as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise picking up undervalued instruments and discarding overvalued instruments since, at some point, asset prices and their ongoing real values will submerge. Key fundamental drivers impacting Diamond Hill's valuation include:
Price Book 2.6413 | Enterprise Value 378.2 M | Enterprise Value Ebitda 10.2314 | Price Sales 3.1053 | Trailing PE 10.4159 |
Fairly Valued
Today
Please note that Diamond Hill's price fluctuation is very steady at this time. Calculation of the real value of Diamond Hill Investment is based on 3 months time horizon. Increasing Diamond Hill's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Diamond Hill Investment is useful when determining the fair value of the Diamond stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Diamond Hill. Since Diamond Hill is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Diamond Stock. However, Diamond Hill'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 150.83 | Real 151.41 | Hype 149.04 |
The real value of Diamond Stock, also known as its intrinsic value, is the underlying worth of Diamond Hill Investment Company, which is reflected in its stock price. It is based on Diamond Hill's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Diamond Hill'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 Diamond Hill'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 Diamond Hill Investment helps investors to forecast how Diamond 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 Diamond Hill more accurately as focusing exclusively on Diamond Hill'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 Diamond Hill's intrinsic value based on its ongoing forecasts of Diamond Hill's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Diamond Hill's closest peers. When choosing an evaluation method for Diamond Hill Investment, 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.
Diamond Hill Investments |
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Diamond Valuation Trend
Knowing Diamond Hill's actual value is paramount for traders to make sound investment determinations. Diamond Hill's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Diamond Hill's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Diamond Hill'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.
Diamond Market Cap
Diamond Hill Investment is rated # 2 in market capitalization category among related companies. Market capitalization of Financials industry is currently estimated at about 9.65 Billion. Diamond Hill holds roughly 420.85 Million in market capitalization claiming about 4% of equities under Financials industry.Diamond Hill Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Diamond Hill's current stock value. Our valuation model uses many indicators to compare Diamond Hill value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Diamond Hill competition to find correlations between indicators driving Diamond Hill's intrinsic value. More Info.Diamond Hill Investment is rated # 3 in price to earning category among related companies. It is rated # 3 in price to book category among related companies fabricating about 0.24 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Diamond Hill Investment is roughly 4.18 . Price To Book Ratio is expected to rise to 4.55 this year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Diamond Hill by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Diamond Hill'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 Diamond Hill'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 Diamond Hill'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 Diamond Hill and how it compares across the competition.
About Diamond Hill Valuation
The stock valuation mechanism determines the current worth of Diamond Hill Investment on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Diamond Hill Investment. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Diamond Hill Investment based exclusively on its fundamental and basic technical indicators. By analyzing Diamond Hill'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 Diamond Hill'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 Diamond Hill. We calculate exposure to Diamond Hill's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Diamond Hill's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 132 M | 138.6 M | |
| Pretax Profit Margin | 0.43 | 0.45 | |
| Operating Profit Margin | 0.37 | 0.39 | |
| Net Profit Margin | 0.31 | 0.32 | |
| Gross Profit Margin | 0.97 | 0.49 |
8 Steps to conduct Diamond Hill's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Diamond Hill'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 Diamond Hill's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Diamond Hill's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Diamond Hill's revenue streams: Identify Diamond Hill's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Diamond Hill's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Diamond Hill's growth potential: Evaluate Diamond Hill's management, business model, and growth potential.
- Determine Diamond Hill'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 Diamond Hill'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 Diamond Hill represents a small ownership stake in the entity. As a stockholder of Diamond, 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.
Diamond Hill Dividends Analysis For Valuation
Dividends Paid is expected to rise to about (16.8 M) this year. The value of Dividend Yield is estimated to slide to 0.03. Retained Earnings is expected to rise to about 161.2 M this year. Retained Earnings Total Equity is expected to rise to about 155.8 M this year
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -17.7 M | -16.8 M | |
| Dividend Yield | 0.04 | 0.03 | |
| Dividend Payout Ratio | 0.42 | 0.40 | |
| Dividend Paid And Capex Coverage Ratio | 2.58 | 2.09 |
There are various types of dividends Diamond Hill 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 Diamond 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 Diamond Hill Investment directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Diamond pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Diamond Hill by the value of the dividends paid out.
Diamond Hill 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 Diamond Hill 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 | 2.9 M | |
| Quarterly Earnings Growth Y O Y | -0.036 |
Diamond Hill Current Valuation Indicators
Valuation refers to the process of determining the present value of Diamond Hill Investment and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Diamond we look at many different elements of the entity such as Diamond's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Diamond Hill'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 Diamond Hill'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 Diamond Hill, 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 Diamond Hill'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 Diamond Hill's worth.When determining whether Diamond Hill Investment is a strong investment it is important to analyze Diamond Hill's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Diamond Hill's future performance. For an informed investment choice regarding Diamond Stock, refer to the following important reports: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Diamond Hill Investment. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Complementary Tools for Diamond Stock analysis
When running Diamond Hill's price analysis, check to measure Diamond Hill'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 Diamond Hill is operating at the current time. Most of Diamond Hill's value examination focuses on studying past and present price action to predict the probability of Diamond Hill's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Diamond Hill's price. Additionally, you may evaluate how the addition of Diamond Hill to your portfolios can decrease your overall portfolio volatility.
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Is Diamond Hill'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 Diamond Hill. If investors know Diamond 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 Diamond Hill 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 (0.04) | Dividend Share 6 | Earnings Share 14.33 | Revenue Per Share 46.366 | Quarterly Revenue Growth (0.03) |
The market value of Diamond Hill Investment is measured differently than its book value, which is the value of Diamond that is recorded on the company's balance sheet. Investors also form their own opinion of Diamond Hill's value that differs from its market value or its book value, called intrinsic value, which is Diamond Hill'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 Diamond Hill's market value can be influenced by many factors that don't directly affect Diamond Hill'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 Diamond Hill's value and its price as these two are different measures arrived at by different means. Investors typically determine if Diamond Hill is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Diamond Hill'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.