Heritage Stock Valuation

HTBK -  USA Stock  

USD 11.83  0.01  0.08%

What is the current Heritage valuation? 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 Heritage Commerce, is its stock price multiplied by the total number of shares outstanding, calculating Heritage Commerce's enterprise value requires a different approach. It uses Heritage Commerce's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current Free Cash Flow is estimated to decrease to about 46.5 M. Enterprise Value is estimated to decrease to about (399.4 M).
Heritage Commerce retains a regular Real Value of $12.27 per share. The prevalent price of the firm is $11.83. At this time, the firm appears to be fairly valued. Our model calculates the value of Heritage Commerce from evaluating the firm fundamentals such as Return On Equity of 7.40 %, return on asset of 0.88 %, and Current Valuation of (573.36 M) as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage purchasing undervalued assets and trading away overvalued assets since, at some point, asset prices and their ongoing real values will come together.

Heritage Valuation 

 
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Heritage Commerce 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 Heritage Commerce's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Fairly Valued
Today
11.83
16th of October 2021
Share
Please note that Heritage Commerce's price fluctuation is not too volatile at this time. Calculation of the real value of Heritage Commerce is based on 3 months time horizon. Increasing Heritage Commerce's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Heritage Commerce is useful when determining the fair value of the Heritage stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Heritage Commerce. Since Heritage Commerce is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Heritage Stock. However, Heritage Commerce'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.
12.27
Real Value
13.79
Upside
Estimating the potential upside or downside of Heritage Commerce helps investors to forecast how Heritage 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 Heritage Commerce more accurately as focusing exclusively on Heritage Commerce's fundamentals will not take into account other important factors:
Earnings
Estimates (4)
LowProjected EPSHigh
0.730.780.80
Details
Hype
Prediction
LowEstimated ValueHigh
10.2911.8113.33
Details
4 Analysts
Consensus
LowTarget PriceHigh
12.0013.0014.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Heritage Commerce's intrinsic value based on its ongoing forecasts of Heritage Commerce's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Heritage Commerce's closest peers. When choosing an evaluation method for Heritage Commerce, 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.

Heritage Commerce Investments

2.79 BillionShare

Heritage Valuation Drivers Correlation

Many accounts on the financial statements of Heritage Commerce are highly interrelated and sometimes correlated. Consequently, when conducting Heritage's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Heritage
Click cells to compare fundamentals

Heritage Valuation Trend

Knowing Heritage Commerce's actual value is paramount for traders to make sound investment determinations. Heritage Commerce's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Heritage Commerce's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Heritage Commerce'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.

Heritage Market Cap

Heritage Commerce is rated # 2 in market capitalization category among related companies. Market capitalization of Banks—Regional industry is currently estimated at about 2.22 Billion. Heritage Commerce totals roughly 711.02 Million in market capitalization claiming about 32% of stocks in Banks—Regional industry.
Capitalization  Revenue  Valuation  Workforce  Total debt

Heritage Commerce Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Heritage Commerce's current stock value. Our valuation model uses many indicators to compare Heritage Commerce value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Heritage Commerce competition to find correlations between indicators driving Heritage Commerce's intrinsic value. More Info.
Heritage Commerce is one of the top stocks in price to sales category among related companies. It is one of the top stocks in price to earning category among related companies reporting about  3.35  of Price to Earning per Price to Sales. . The current Price to Earnings Ratio is estimated to increase to 18.33, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to decrease to under 44.2 M.

About Heritage Commerce Valuation

The equity valuation mechanism determines the current worth of Heritage Commerce on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Heritage Commerce. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Heritage Commerce based exclusively on its fundamental and basic technical indicators. By analyzing Heritage Commerce'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 Heritage Commerce'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 Heritage Commerce. We calculate exposure to Heritage Commerce's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Heritage Commerce's related companies.
Last ReportedProjected for 2021
Gross Profit138.6 M123.3 M
Profit Margin 0.26  0.28 
Heritage Commerce Corp operates as the bank holding company for Heritage Bank of Commerce that provides various commercial and personal banking services to residents and the businessprofessional community in California. Its deposit products for business banking and retail markets include interest and non-interest bearing demand, savings, and money market accounts, as well as certificates of deposit and time deposits. The companys loan portfolio comprises commercial loans, such as operating secured and unsecured loans advanced for working capital, equipment purchases, and other business purposes commercial real estate loans commercial construction loans for rental properties, commercial buildings, and homes small business administration loans home equity lines of credit multifamily loans on residential properties residential mortgage loans and consumer loans consisting of loans for financing automobiles, various consumer goods, and other personal purposes. In addition, it offers other banking services, including cashiers checks, bank by mail, night depositories, safe deposit boxes, direct deposit, automated payroll, electronic funds transfer, online bill pay, homeowner association, remote deposit capture, automated clearing house origination, electronic data interchange, and check imaging services, as well as other customary banking, factoring financing, and electronic banking services. The company operates through nineteen full-service branch offices located in the general San Francisco Bay Area of California. Heritage Commerce Corp was founded in 1994 and is headquartered in San Jose, California.

Heritage Commerce Quarterly Enterprise Value

(734.32 Million)Share

Heritage Commerce Dividends Analysis For Valuation

The current Preferred Dividends Income Statement Impact is estimated to decrease to about 1.4 M. The current Payment of Dividends and Other Cash Distributions is estimated to decrease to about (31.9 M). Heritage Commerce Earnings per Basic Share are increasing as compared to previous years. The last year's value of Earnings per Basic Share was reported at 0.59. The current Earnings per Diluted Share is estimated to increase to 0.64, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to decrease to under 44.2 M.
Last ReportedProjected for 2021
Preferred Dividends Income Statement Impact1.4 M1.4 M
Payment of Dividends and Other Cash Distributions-31.1 M-31.9 M
Dividend Yield 0.06  0.0484 
Dividends per Basic Common Share 0.52  0.48 
There are various types of dividends Heritage Commerce 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 Heritage 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 Heritage Commerce directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Heritage pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Heritage Commerce by the value of the dividends paid out.

Heritage Commerce 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 Heritage Commerce 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.
Earnings Quarterly Growth-17.00%
Revenue Growth4.60%
Payout Ratio73.24%
Earnings Growth-17.90%
Enterprise Value To Revenue-3.81

Heritage Commerce Current Valuation Indicators

Valuation refers to the process of determining the present value of Heritage Commerce and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Heritage we look at many different elements of the entity such as Heritage's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Please check Risk vs Return Analysis. Note that the Heritage Commerce information on this page should be used as a complementary analysis to other Heritage Commerce'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 Global Correlations module to find global opportunities by holding instruments from different markets.

Complementary Tools for Heritage Stock analysis

When running Heritage Commerce price analysis, check to measure Heritage Commerce'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 Heritage Commerce is operating at the current time. Most of Heritage Commerce's value examination focuses on studying past and present price action to predict the probability of Heritage Commerce's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Heritage Commerce's price. Additionally, you may evaluate how the addition of Heritage Commerce to your portfolios can decrease your overall portfolio volatility.
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The market value of Heritage Commerce is measured differently than its book value, which is the value of Heritage that is recorded on the company's balance sheet. Investors also form their own opinion of Heritage Commerce's value that differs from its market value or its book value, called intrinsic value, which is Heritage Commerce'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 Heritage Commerce's market value can be influenced by many factors that don't directly affect Heritage Commerce underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Heritage Commerce's value and its price as these two are different measures arrived at by different means. Investors typically determine Heritage Commerce value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Heritage Commerce'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.