Lifeway Foods Valuation
| LWAY Stock | USD 20.47 0.57 2.86% |
At this time, the firm appears to be overvalued. Lifeway Foods secures a last-minute Real Value of $15.24 per share. The latest price of the firm is $20.47. Our model forecasts the value of Lifeway Foods from analyzing the firm fundamentals such as Profit Margin of 0.07 %, return on equity of 0.21, and Current Valuation of 304.55 M as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend acquiring undervalued stocks and dropping overvalued stocks since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting Lifeway Foods' valuation include:
Price Book 5.027 | Enterprise Value 304.6 M | Enterprise Value Ebitda 14.5351 | Price Sales 1.8974 | Trailing PE 28.5733 |
Overvalued
Today
Please note that Lifeway Foods' price fluctuation is somewhat reliable at this time. Calculation of the real value of Lifeway Foods is based on 3 months time horizon. Increasing Lifeway Foods' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Lifeway Foods is useful when determining the fair value of the Lifeway stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Lifeway Foods. Since Lifeway Foods is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Lifeway Stock. However, Lifeway Foods' 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 20.47 | Real 15.24 | Target 12.0 | Hype 21.64 | Naive 17.86 |
The real value of Lifeway Stock, also known as its intrinsic value, is the underlying worth of Lifeway Foods Company, which is reflected in its stock price. It is based on Lifeway Foods' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Lifeway Foods' 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 Lifeway Foods' 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 Lifeway Foods helps investors to forecast how Lifeway 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 Lifeway Foods more accurately as focusing exclusively on Lifeway Foods' 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 Lifeway Foods' intrinsic value based on its ongoing forecasts of Lifeway Foods' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Lifeway Foods' closest peers. When choosing an evaluation method for Lifeway Foods, 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.
Lifeway Foods Investments |
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Lifeway Valuation Trend
Knowing Lifeway Foods' actual value is paramount for traders to make sound investment determinations. Lifeway Foods' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Lifeway Foods' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Lifeway Foods' 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.
Lifeway Market Cap
Lifeway Foods is currently regarded as number one stock in market capitalization category among related companies. Market capitalization of Consumer Staples industry is now estimated at about 362.89 Million. Lifeway Foods totals roughly 314.83 Million in market capitalization claiming about 87% of stocks in Consumer Staples industry.Lifeway Foods Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Lifeway Foods's current stock value. Our valuation model uses many indicators to compare Lifeway Foods value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Lifeway Foods competition to find correlations between indicators driving Lifeway Foods's intrinsic value. More Info.Lifeway Foods 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 0.16 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Lifeway Foods is roughly 6.36 . Price To Book Ratio is likely to rise to 4.57 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Lifeway Foods by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lifeway Foods' 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 Lifeway Foods' 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 Lifeway Foods' 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 Lifeway Foods and how it compares across the competition.
About Lifeway Foods Valuation
The stock valuation mechanism determines the current worth of Lifeway Foods on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Lifeway Foods. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Lifeway Foods based exclusively on its fundamental and basic technical indicators. By analyzing Lifeway Foods'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 Lifeway Foods'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 Lifeway Foods. We calculate exposure to Lifeway Foods's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Lifeway Foods's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 41.9 M | 44 M | |
| Pretax Profit Margin | 0.10 | 0.12 | |
| Operating Profit Margin | 0.11 | 0.10 | |
| Net Profit Margin | 0.07 | 0.07 | |
| Gross Profit Margin | 0.26 | 0.42 |
Lifeway Foods Quarterly Retained Earnings |
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8 Steps to conduct Lifeway Foods' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Lifeway Foods' 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 Lifeway Foods' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Lifeway Foods' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Lifeway Foods' revenue streams: Identify Lifeway Foods' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Lifeway Foods' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Lifeway Foods' growth potential: Evaluate Lifeway Foods' management, business model, and growth potential.
- Determine Lifeway Foods' 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 Lifeway Foods' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Lifeway Foods 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 Lifeway Foods 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 | 15.1 M | |
| Quarterly Earnings Growth Y O Y | 4.521 |
Lifeway Foods Current Valuation Indicators
Valuation refers to the process of determining the present value of Lifeway Foods and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Lifeway we look at many different elements of the entity such as Lifeway's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Lifeway Foods' 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 Lifeway Foods' 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 Lifeway Foods, 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 Lifeway Foods' 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 Lifeway Foods' worth.When determining whether Lifeway Foods offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Lifeway Foods' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Lifeway Foods Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lifeway Foods Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lifeway Foods. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. For more information on how to buy Lifeway Stock please use our How to Invest in Lifeway Foods guide.Note that the Lifeway Foods information on this page should be used as a complementary analysis to other Lifeway Foods' 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Complementary Tools for Lifeway Stock analysis
When running Lifeway Foods' price analysis, check to measure Lifeway Foods' 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 Lifeway Foods is operating at the current time. Most of Lifeway Foods' value examination focuses on studying past and present price action to predict the probability of Lifeway Foods' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lifeway Foods' price. Additionally, you may evaluate how the addition of Lifeway Foods to your portfolios can decrease your overall portfolio volatility.
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Is Lifeway Foods' 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 Lifeway Foods. If investors know Lifeway 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 Lifeway Foods 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 4.521 | Earnings Share 0.75 | Revenue Per Share 10.917 | Quarterly Revenue Growth 0.175 | Return On Assets 0.141 |
The market value of Lifeway Foods is measured differently than its book value, which is the value of Lifeway that is recorded on the company's balance sheet. Investors also form their own opinion of Lifeway Foods' value that differs from its market value or its book value, called intrinsic value, which is Lifeway Foods' 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 Lifeway Foods' market value can be influenced by many factors that don't directly affect Lifeway Foods' 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 Lifeway Foods' value and its price as these two are different measures arrived at by different means. Investors typically determine if Lifeway Foods is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lifeway Foods' 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.