Hovnanian Enterprises Valuation
| HOV Stock | USD 138.88 8.62 6.62% |
At this time, the firm appears to be overvalued. Hovnanian Enterprises retains a regular Real Value of $71.83 per share. The prevalent price of the firm is $138.88. Our model calculates the value of Hovnanian Enterprises from evaluating the firm fundamentals such as Return On Equity of 0.42, current valuation of 1.89 B, and Return On Asset of 0.0721 as well as inspecting its technical indicators and probability of bankruptcy. In general, most investors encourage buying undervalued assets and disposing overvalued assets since, at some point, asset prices and their ongoing real values will come together. Key fundamental drivers impacting Hovnanian Enterprises' valuation include:
Price Book 1.83 | Enterprise Value 1.9 B | Enterprise Value Ebitda 5.7001 | Price Sales 0.3134 | Forward PE 4.902 |
Overvalued
Today
Please note that Hovnanian Enterprises' price fluctuation is very steady at this time. Calculation of the real value of Hovnanian Enterprises is based on 3 months time horizon. Increasing Hovnanian Enterprises' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Hovnanian Enterprises is useful when determining the fair value of the Hovnanian stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Hovnanian Enterprises. Since Hovnanian Enterprises is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Hovnanian Stock. However, Hovnanian Enterprises' 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 138.88 | Real 71.83 | Target 27.0 | Hype 138.53 |
The real value of Hovnanian Stock, also known as its intrinsic value, is the underlying worth of Hovnanian Enterprises Company, which is reflected in its stock price. It is based on Hovnanian Enterprises' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Hovnanian Enterprises' 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 Hovnanian Enterprises' 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 Hovnanian Enterprises helps investors to forecast how Hovnanian 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 Hovnanian Enterprises more accurately as focusing exclusively on Hovnanian Enterprises' 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 Hovnanian Enterprises' intrinsic value based on its ongoing forecasts of Hovnanian Enterprises' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Hovnanian Enterprises' closest peers. When choosing an evaluation method for Hovnanian Enterprises, 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.
Hovnanian Enterprises Investments |
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Hovnanian Valuation Trend
Knowing Hovnanian Enterprises' actual value is paramount for traders to make sound investment determinations. Hovnanian Enterprises' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Hovnanian Enterprises' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Hovnanian Enterprises' 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.
Hovnanian Market Cap
Hovnanian Enterprises is rated below average in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is currently estimated at about 173.28 Billion. Hovnanian Enterprises adds roughly 827.53 Million in market capitalization claiming only tiny portion of stocks in Consumer Discretionary industry.Hovnanian Enterprises Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Hovnanian Enterprises's current stock value. Our valuation model uses many indicators to compare Hovnanian Enterprises value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Hovnanian Enterprises competition to find correlations between indicators driving Hovnanian Enterprises's intrinsic value. More Info.Hovnanian Enterprises is rated below average in price to earning category among related companies. It is rated # 4 in price to book category among related companies fabricating about 1.21 of Price To Book per Price To Earning. Price To Book Ratio is likely to drop to 0.79 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Hovnanian Enterprises by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Hovnanian Enterprises' 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 Hovnanian Enterprises' 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 Hovnanian Enterprises' 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 Hovnanian Enterprises and how it compares across the competition.
About Hovnanian Enterprises Valuation
The stock valuation mechanism determines the current worth of Hovnanian Enterprises on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Hovnanian Enterprises. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Hovnanian Enterprises based exclusively on its fundamental and basic technical indicators. By analyzing Hovnanian Enterprises'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 Hovnanian Enterprises'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 Hovnanian Enterprises. We calculate exposure to Hovnanian Enterprises's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Hovnanian Enterprises's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 667.2 M | 343.9 M | |
| Pretax Profit Margin | 0.09 | 0.11 | |
| Operating Profit Margin | (1.87) | (1.77) | |
| Net Profit Margin | 0.09 | 0.09 | |
| Gross Profit Margin | 0.24 | 0.17 |
8 Steps to conduct Hovnanian Enterprises' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Hovnanian Enterprises' 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 Hovnanian Enterprises' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Hovnanian Enterprises' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Hovnanian Enterprises' revenue streams: Identify Hovnanian Enterprises' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Hovnanian Enterprises' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Hovnanian Enterprises' growth potential: Evaluate Hovnanian Enterprises' management, business model, and growth potential.
- Determine Hovnanian Enterprises' 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 Hovnanian Enterprises' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Hovnanian Enterprises 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 Hovnanian Enterprises 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 | 6.7 M | |
| Quarterly Earnings Growth Y O Y | 0.288 | |
| Forward Price Earnings | 4.902 |
Hovnanian Enterprises Current Valuation Indicators
Valuation refers to the process of determining the present value of Hovnanian Enterprises and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Hovnanian we look at many different elements of the entity such as Hovnanian's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Hovnanian Enterprises' 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 Hovnanian Enterprises' 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 Hovnanian Enterprises, 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 Hovnanian Enterprises' 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 Hovnanian Enterprises' worth.When determining whether Hovnanian Enterprises is a strong investment it is important to analyze Hovnanian Enterprises' 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 Hovnanian Enterprises' future performance. For an informed investment choice regarding Hovnanian Stock, refer to the following important reports: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Hovnanian Enterprises. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in persons. For more information on how to buy Hovnanian Stock please use our How to Invest in Hovnanian Enterprises guide.You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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Is Hovnanian Enterprises' 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 Hovnanian Enterprises. If investors know Hovnanian 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 Hovnanian Enterprises 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 0.288 | Earnings Share 27.52 | Revenue Per Share 449.441 | Quarterly Revenue Growth 0.153 | Return On Assets 0.0721 |
The market value of Hovnanian Enterprises is measured differently than its book value, which is the value of Hovnanian that is recorded on the company's balance sheet. Investors also form their own opinion of Hovnanian Enterprises' value that differs from its market value or its book value, called intrinsic value, which is Hovnanian Enterprises' 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 Hovnanian Enterprises' market value can be influenced by many factors that don't directly affect Hovnanian Enterprises' 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 Hovnanian Enterprises' value and its price as these two are different measures arrived at by different means. Investors typically determine if Hovnanian Enterprises is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hovnanian Enterprises' 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.