Lamb Weston Stock Valuation

LW -  USA Stock  

USD 75.50  0.92  1.23%

What is the acquisition price tag of Lamb Weston 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 Lamb Weston, is its stock price multiplied by the total number of shares outstanding, calculating Lamb Weston's enterprise value requires a different approach. It uses Lamb Weston's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Enterprise Value is likely to climb to about 13 B in 2021, whereas Free Cash Flow is likely to drop slightly above 390.2 M in 2021.
Lamb Weston Holdings secures a last-minute Real Value of $82.01 per share. The latest price of the firm is $75.5. At this time, the firm appears to be undervalued. Our model forecasts the value of Lamb Weston Holdings from analyzing the firm fundamentals such as Current Valuation of 13.73 B, profit margin of 7.14 %, and Return On Equity of 69.44 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend buying undervalued stocks and disposing overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.

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Lamb Weston 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 Lamb Weston's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today
75.50
25th of July 2021
Share
Lamb Weston is very steady asset. Calculation of real value of Lamb Weston Holdings is based on 3 months time horizon. Increasing Lamb Weston Holdings time horizon generally increases accuracy of value calculation and significantly improves predictive power of the methodology used.
Our valuation method for Lamb Weston Holdings is useful when determining the fair value of the Lamb Weston stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Lamb Weston. Since Lamb Weston is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Lamb Weston Stock. However, Lamb Weston'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.
82.01
Real Value
83.41
Upside
Estimating the potential upside or downside of Lamb Weston Holdings helps investors to forecast how Lamb Weston 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 Lamb Weston more accurately as focusing exclusively on Lamb Weston's fundamentals will not take into account other important factors:
Earnings
Estimates (4)
LowProjected EPSHigh
2.092.142.19
Details
Hype
Prediction
LowEstimated ValueHigh
73.9775.3776.77
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.360.360.37
Details
4 Analysts
Consensus
LowTarget PriceHigh
89.0095.25100.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. Some money managers use Lamb Weston's intrinsic value based on its ongoing forecasts of Lamb Weston's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by look to relative valuation against Lamb Weston's closest peers. When choosing a valuation method Lamb Weston Holdings, 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.

Lamb Weston Investments

270.51 MillionShare

Lamb Weston Valuation Drivers Correlation

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

Lamb Weston Market Cap

Lamb Weston Holdings is currently regarded as number one stock in market capitalization category among related companies. Market capitalization of Packaged Foods industry is now estimated at about 11.45 Billion. Lamb Weston totals roughly 11.36 Billion in market capitalization claiming about 99% of equities listed under Packaged Foods industry.
Capitalization  Total debt  Workforce  Revenue  Valuation

Lamb Weston Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Lamb Weston's current stock value. Our valuation model uses many indicators to compare Lamb Weston value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Lamb Weston competition to find correlations between indicators driving Lamb Weston's intrinsic value. More Info.
Lamb Weston Holdings is rated second overall in beta category among related companies. It is currently regarded as number one stock in price to sales category among related companies fabricating about  4.21  of Price to Sales per Beta. . Price to Sales Ratio is likely to climb to 2.79 in 2021

About Lamb Weston Valuation

The equity valuation mechanism determines the current worth of Lamb Weston Holdings on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Lamb Weston Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Lamb Weston Holdings based exclusively on its fundamental and basic technical indicators. By analyzing Lamb Weston'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 Lamb Weston'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 Lamb Weston. We calculate exposure to Lamb Weston's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Lamb Weston's related companies.
Last ReportedProjected for 2021
Gross ProfitB982.1 M
Profit Margin 0.11  0.11 
Lamb Weston Holdings, Inc. produces, distributes, and markets value-added frozen potato products worldwide. Lamb Weston Holdings, Inc. was founded in 1950 and is headquartered in Eagle, Idaho. Lamb Weston operates under Packaged Foods classification in the United States and is traded on New York Stock Exchange. It employs 7700 people.

Lamb Weston Quarterly Enterprise Value

13.66 BillionShare

Lamb Weston Dividends Analysis For Valuation

Payment of Dividends and Other Cash Distributions is likely to drop to about (117.8 M) in 2021. Dividend Yield is likely to drop to 0.0153 in 2021. Lamb Weston Earnings per Basic Share are fairly stable at the moment as compared to the past year. Lamb Weston reported Earnings per Basic Share of 2.88 in 2020. Earnings per Diluted Share is likely to climb to 2.90 in 2021, whereas Earning Before Interest and Taxes EBIT is likely to drop slightly above 658.8 M in 2021.
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-109.2 M-117.8 M
Dividend Yield 0.0161  0.0153 
Dividends per Basic Common Share 0.99  0.92 
There are various types of dividends Lamb Weston 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 Lamb Weston 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 Lamb Weston Holdings directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Lamb Weston pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Lamb Weston by the value of the dividends paid out.

Lamb Weston 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 Lamb Weston 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 Ratio1.85
Earnings Quarterly Growth-40.70%
Revenue Growth-4.40%
Payout Ratio54.09%
Enterprise Value To Ebitda20.95
Earnings Growth-40.80%
Enterprise Value To Revenue3.91

Lamb Weston Current Valuation Indicators

Valuation refers to the process of determining the present value of Lamb Weston Holdings and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Lamb Weston we look at many different elements of the entity such as Lamb Weston'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 Lamb Weston Holdings information on this page should be used as a complementary analysis to other Lamb Weston'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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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