Lifeway Foods Valuation

LWAY Stock  USD 12.19  0.58  4.54%   
At this time, the firm appears to be overvalued. Lifeway Foods secures a last-minute Real Value of $11.55 per share. The latest price of the firm is $12.19. Our model forecasts the value of Lifeway Foods from analyzing the firm fundamentals such as Profit Margin of 0.08 %, current valuation of 178.45 M, and Return On Equity of 0.23 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Lifeway Foods' valuation include:
Price Book
5.027
Enterprise Value
178.4 M
Enterprise Value Ebitda
14.5351
Price Sales
1.8974
Trailing PE
15.0235
Overvalued
Today
12.19
Please note that Lifeway Foods' price fluctuation is slightly risky 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.
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  12.19 Real  11.55 Target  12.0 Hype  12.26 Naive  16.96
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.
11.55
Real Value
18.71
Upside
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:
Earnings
Estimates (0)
LowProjectedHigh
0.170.200.24
Details
Hype
Prediction
LowEstimatedHigh
5.1012.2619.42
Details
Naive
Forecast
LowNext ValueHigh
9.8016.9624.12
Details
2 Analysts
Consensus
LowTarget PriceHigh
10.9212.0013.32
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 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.

Lifeway Foods Investments

(3.84 Million)

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 rated fifth overall in market capitalization category among its peers. Market capitalization of Consumer Staples industry is now estimated at about 30.88 Billion. Lifeway Foods maintains roughly 187.81 Million in market capitalization contributing less than 1% to stocks in Consumer Staples industry.
Capitalization  Valuation  Revenue  Total debt  Workforce

Lifeway Foods Total Value Analysis

Lifeway Foods is now forecasted to have valuation of 178.45 M with market capitalization of 187.81 M, debt of 2.92 M, and cash on hands of 6.49 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Lifeway Foods fundamentals before making equity appraisal based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
178.45 M187.81 M2.92 M6.49 M

Lifeway Foods Investor Information

About 69.0% of the company outstanding shares are owned by corporate insiders. The company last dividend was issued on the 29th of May 2013. Lifeway Foods had 2:1 split on the 16th of August 2006. Lifeway Foods, Inc. produces and markets probiotic-based products in the United States and internationally. The company was founded in 1986 and is based in Morton Grove, Illinois. Lifeway Foods operates under Packaged Foods classification in the United States and is traded on NASDAQ Exchange. It employs 280 people. To find out more about Lifeway Foods contact Julie Smolyansky at 847 967 1010 or learn more at https://lifewaykefir.com.

Lifeway Foods Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Lifeway Foods has an asset utilization ratio of 193.76 percent. This suggests that the Company is making $1.94 for each dollar of assets. An increasing asset utilization means that Lifeway Foods is more efficient with each dollar of assets it utilizes for everyday operations.

Lifeway Foods Ownership Allocation

Lifeway Foods secures majority of its outstanding shares owned by insiders. An insider is usually defined as a corporate executive, director, member of the board or institutional investor who own at least 10% of the company's outstanding shares. 68.93 % of Lifeway Foods outstanding shares that are owned by insiders conveys that they have been buying or selling the stock in recent months in anticipation of some upcoming event.

Lifeway Foods Profitability Analysis

The company reported the previous year's revenue of 160.12 M. Net Income was 11.37 M with profit before overhead, payroll, taxes, and interest of 29.22 M.

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 ReportedProjected for Next Year
Gross Profit41.9 M44 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

68.22 Million

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.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

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.
Common Stock Shares Outstanding15.1 M
Quarterly Earnings Growth Y O Y1.823

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.

Additional 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.