Highway Stock Valuation

HIHO Stock  USD 2.37  0.02  0.85%   
What is the current enterprise value of Highway Holdings? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Highway Holdings, is its stock price multiplied by the total number of shares outstanding, calculating Highway Holdings' enterprise value requires a different approach. It uses Highway Holdings' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Highway Holdings retains a regular Real Value of $2.3 per share. The prevalent price of the firm is $2.37. Based on Macroaxis valuation methodology, the firm appears to be fairly valued. Our model calculates the value of Highway Holdings from evaluating the firm fundamentals such as Return On Asset of 0.032 %, return on equity of 0.07 %, and Current Valuation of 3.97 M as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage picking up undervalued assets and discarding overvalued assets since, at some point, asset prices and their ongoing real values will come together.
  
Highway Holdings Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Highway Holdings's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Highway Most Recent Valuation Data

Dividend Share
0.26
Beta
0.2689
Fiscal Year End
March
Property Plant And Equipment Net
2.4 M
Enterprise Value
M
Fairly Valued
Today 2.37
Please note that Highway Holdings' price fluctuation is risky at this time. Calculation of the real value of Highway Holdings is based on 3 months time horizon. Increasing Highway Holdings' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Highway Holdings Limited is useful when determining the fair value of the Highway stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Highway Holdings. Since Highway Holdings is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Highway Stock. However, Highway Holdings' 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.
2.29
Real Value
5.39
Upside
Estimating the potential upside or downside of Highway Holdings Limited helps investors to forecast how Highway 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 Highway Holdings more accurately as focusing exclusively on Highway Holdings' fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
2.132.292.46
Details
Hype
Prediction
LowEstimated ValueHigh
0.122.415.50
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.110.130.15
Details

Highway Holdings Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Highway Holdings's current stock value. Our valuation model uses many indicators to compare Highway Holdings value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Highway Holdings competition to find correlations between indicators driving Highway Holdings's intrinsic value. More Info.
Highway Holdings Limited is one of the top stocks in five year return category among related companies. It is one of the top stocks in price to earning category among related companies reporting about  1.56  of Price to Earning per Five Year Return. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Highway Holdings by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Highway Holdings' 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 Highway Holdings' 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 Highway Holdings' 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 Highway Holdings and how it compares across the competition.

About Highway Holdings Valuation

The stock valuation mechanism determines the current worth of Highway Holdings Limited on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Highway Holdings Limited. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Highway Holdings based exclusively on its fundamental and basic technical indicators. By analyzing Highway Holdings'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 Highway Holdings'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 Highway Holdings. We calculate exposure to Highway Holdings's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Highway Holdings's related companies.
Fiscal Year End
March
Industry
Metal Fabrication
Concentration
Industrial Machinery
Service Category
Machinery
Highway Holdings Limited, together with its subsidiaries, manufactures and supplies metal, plastic, electric, and electronic components, subassemblies, and finished products for original equipment manufacturers and contract manufacturers. Highway Holdings Limited was incorporated in 1990 and is headquartered in Sheung Shui, Hong Kong. Highway Hlds operates under Fabricated Metal And Composite Products classification in the United States and is traded on NASDAQ Exchange.

8 Steps to conduct Highway Holdings' Valuation Analysis

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

Highway Holdings Dividends Analysis For Valuation

There are various types of dividends Highway Holdings 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 Highway 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 Highway Holdings Limited directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Highway pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Highway Holdings by the value of the dividends paid out.

Highway Holdings Valuation Growth Rates

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 Highway Holdings 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.
Quarterly Earnings Growth Y O Y0.621
Please check Risk vs Return Analysis. Note that the Highway Holdings information on this page should be used as a complementary analysis to other Highway Holdings' 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

Complementary Tools for Highway Stock analysis

When running Highway Holdings price analysis, check to measure Highway Holdings' 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 Highway Holdings is operating at the current time. Most of Highway Holdings' value examination focuses on studying past and present price action to predict the probability of Highway Holdings' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Highway Holdings' price. Additionally, you may evaluate how the addition of Highway Holdings to your portfolios can decrease your overall portfolio volatility.
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Is Highway Holdings' 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 Highway Holdings. If investors know Highway 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 Highway Holdings 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
0.621
Market Capitalization
9.7 M
Quarterly Revenue Growth
(0.1) 
Return On Assets
0.032
Return On Equity
0.0673
The market value of Highway Holdings is measured differently than its book value, which is the value of Highway that is recorded on the company's balance sheet. Investors also form their own opinion of Highway Holdings' value that differs from its market value or its book value, called intrinsic value, which is Highway Holdings' 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 Highway Holdings' market value can be influenced by many factors that don't directly affect Highway Holdings' 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 Highway Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine Highway Holdings value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Highway Holdings' 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.