Lithium Americas Valuation
| LAC Stock | CAD 6.41 0.11 1.69% |
At this time, the firm appears to be overvalued. Lithium Americas Corp secures a last-minute Real Value of C$5.89 per share. The latest price of the firm is C$6.41. Our model forecasts the value of Lithium Americas Corp from analyzing the firm fundamentals such as Shares Owned By Insiders of 10.26 %, return on equity of -0.0211, and Current Valuation of 863.24 M as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend obtaining undervalued stocks and abandoning overvalued stocks since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting Lithium Americas' valuation include:
Price Book 2.8283 | Enterprise Value 863.2 M | Enterprise Value Ebitda (401.81) | Price Sales 89.1597 | Forward PE 39.8406 |
Overvalued
Today
Please note that Lithium Americas' price fluctuation is unstable at this time. Calculation of the real value of Lithium Americas Corp is based on 3 months time horizon. Increasing Lithium Americas' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Lithium Americas Corp is useful when determining the fair value of the Lithium stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Lithium Americas. Since Lithium Americas is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Lithium Stock. However, Lithium Americas' 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 6.41 | Real 5.89 | Hype 6.45 |
The real value of Lithium Stock, also known as its intrinsic value, is the underlying worth of Lithium Americas Corp Company, which is reflected in its stock price. It is based on Lithium Americas' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Lithium Americas' 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 Lithium Americas' 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 Lithium Americas Corp helps investors to forecast how Lithium 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 Lithium Americas more accurately as focusing exclusively on Lithium Americas' 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 Lithium Americas' intrinsic value based on its ongoing forecasts of Lithium Americas' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Lithium Americas' closest peers. When choosing an evaluation method for Lithium Americas Corp, 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.
Lithium Americas Investments |
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Lithium Valuation Drivers Correlation
Many accounts on the financial statements of Lithium Americas Corp are highly interrelated and sometimes correlated. Consequently, when conducting Lithium'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 Lithium
Click cells to compare fundamentals
Lithium Valuation Trend
Knowing Lithium Americas' actual value is paramount for traders to make sound investment determinations. Lithium Americas' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Lithium Americas' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Lithium Americas' 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.
Lithium Market Cap
Lithium Americas Corp is currently regarded as number one stock in market capitalization category among related companies. Market capitalization of Materials industry is now estimated at about 12.4 Billion. Lithium Americas retains roughly 1.42 Billion in market capitalization claiming about 11% of all equities under Materials industry.Lithium Americas Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Lithium Americas's current stock value. Our valuation model uses many indicators to compare Lithium Americas value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Lithium Americas competition to find correlations between indicators driving Lithium Americas's intrinsic value. More Info.Lithium Americas Corp is currently regarded as number one stock in price to earning category among related companies. It is currently regarded as number one stock in price to book category among related companies fabricating about 0.09 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Lithium Americas Corp is roughly 10.72 . As of the 24th of April 2024, Price To Book Ratio is likely to grow to 3.05. Comparative valuation analysis is a catch-all model that can be used if you cannot value Lithium Americas by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lithium Americas' 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 Lithium Americas' 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 Lithium Americas' 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 Lithium Americas and how it compares across the competition.
About Lithium Americas Valuation
The stock valuation mechanism determines the current worth of Lithium Americas Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Lithium Americas Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Lithium Americas Corp based exclusively on its fundamental and basic technical indicators. By analyzing Lithium Americas'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 Lithium Americas'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 Lithium Americas. We calculate exposure to Lithium Americas's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Lithium Americas's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | -415 K | -435.8 K | |
| Pretax Profit Margin | (5.25) | (5.52) | |
| Operating Profit Margin | (3.32) | (3.48) | |
| Net Loss | (5.25) | (5.52) | |
| Gross Profit Margin | (0.36) | (0.38) |
8 Steps to conduct Lithium Americas' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Lithium Americas' 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 Lithium Americas' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Lithium Americas' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Lithium Americas' revenue streams: Identify Lithium Americas' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Lithium Americas' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Lithium Americas' growth potential: Evaluate Lithium Americas' management, business model, and growth potential.
- Determine Lithium Americas' 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 Lithium Americas' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lithium Americas Corp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. Note that the Lithium Americas Corp information on this page should be used as a complementary analysis to other Lithium Americas' 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 the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Complementary Tools for Lithium Stock analysis
When running Lithium Americas' price analysis, check to measure Lithium Americas' 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 Lithium Americas is operating at the current time. Most of Lithium Americas' value examination focuses on studying past and present price action to predict the probability of Lithium Americas' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lithium Americas' price. Additionally, you may evaluate how the addition of Lithium Americas to your portfolios can decrease your overall portfolio volatility.
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