L Brands Stock Valuation

LB -  USA Stock  

USD 77.85  1.50  1.96%

Do you wonder what the value of L Brands is? 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 L Brands, is its stock price multiplied by the total number of shares outstanding, calculating L Brands' enterprise value requires a different approach. It uses L Brands' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current year Enterprise Value is expected to grow to about 24.9 B, whereas Free Cash Flow is forecasted to decline to about 1.5 B.
L Brands owns a latest Real Value of $77.14 per share. The recent price of the entity is $77.85. At this time, the entity appears to be fairly valued. Our model forecasts the value of L Brands from analyzing the entity fundamentals such as Return On Asset of 10.80 %, current valuation of 23.95 B, and Profit Margin of 7.12 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend taking in undervalued equities and trading overvalued equities since, sooner or later, asset prices and their ongoing real values will come together.

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L Brands 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 L Brands'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
77.85
25th of July 2021
Share
L Brands is very steady asset. Calculation of real value of L Brands is based on 3 months time horizon. Increasing L Brands time horizon generally increases accuracy of value calculation and significantly improves predictive power of the methodology used.
Our valuation method for L Brands is useful when determining the fair value of the L Brands stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of L Brands. Since L Brands is currently traded on the exchange, buyers and sellers on that exchange determine the market value of L Brands Stock. However, L Brands' 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.
77.14
Real Value
79.55
Upside
Estimating the potential upside or downside of L Brands helps investors to forecast how L Brands 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 L Brands more accurately as focusing exclusively on L Brands' fundamentals will not take into account other important factors:
Earnings
Estimates (9)
LowProjected EPSHigh
5.576.136.57
Details
Hype
Prediction
LowEstimated ValueHigh
74.8777.2879.69
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.300.300.30
Details
17 Analysts
Consensus
LowTarget PriceHigh
32.0072.21102.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. Some money managers use L Brands' intrinsic value based on its ongoing forecasts of L Brands' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by look to relative valuation against L Brands' closest peers. When choosing a valuation method L Brands, make sure it is appropriate for the firm given its current financial situation and market classification. If more than one is valuation category is appropriate, we suggest using both methods to arrive at a better estimate.

L Brands Valuation Drivers Correlation

Many accounts on the financial statements of L Brands are highly interrelated and sometimes correlated. Consequently, when conducting L Brands'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 L Brands
Click cells to compare fundamentals

L Brands Market Cap

L Brands is currently regarded as number one stock in market capitalization category among related companies. Market capitalization of Apparel Retail industry is now estimated at about 25.14 Billion. L Brands totals roughly 20.77 Billion in market capitalization claiming about 83% of stocks in Apparel Retail industry.
Capitalization  Workforce  Valuation  Revenue  Total debt

L Brands Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining L Brands's current stock value. Our valuation model uses many indicators to compare L Brands value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across L Brands competition to find correlations between indicators driving L Brands's intrinsic value. More Info.
L Brands is currently regarded as number one stock in price to sales category among related companies. It is currently regarded as number one stock in five year return category among related companies reporting about  3.13  of Five Year Return per Price to Sales.

About L Brands Valuation

The equity valuation mechanism determines the current worth of L Brands on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of L Brands. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of L Brands based exclusively on its fundamental and basic technical indicators. By analyzing L Brands'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 L Brands'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 L Brands. We calculate exposure to L Brands's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to L Brands's related companies.
Last ReportedProjected for 2021
Gross Profit4.7 BB
Profit Margin 0.07  0.09 
L Brands, Inc. operates as a retailer of home fragrance products, body care products, soaps and sanitizers, womens intimate and other apparel, and personal and beauty care products. L Brands, Inc. was founded in 1963 and is headquartered in Columbus, Ohio. L Brands operates under Apparel Retail classification in the United States and is traded on New York Stock Exchange. It employs 22400 people.

L Brands Quarterly Enterprise Value

23.93 BillionShare

L Brands Dividends Analysis For Valuation

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

L Brands 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 L Brands 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.
Quick Ratio1.48
Revenue Growth2.40%
Payout Ratio10.00%
Enterprise Value To Ebitda10.00
Enterprise Value To Revenue2.02

L Brands Current Valuation Indicators

Valuation refers to the process of determining the present value of L Brands and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value L Brands we look at many different elements of the entity such as L Brands's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Additionally, see Stocks Correlation. Note that the L Brands information on this page should be used as a complementary analysis to other L Brands' 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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