Lifeway Stock Valuation

LWAY
 Stock
  

USD 6.48  0.76  13.29%   

Do you wonder what the value of Lifeway Foods 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 Lifeway Foods, is its stock price multiplied by the total number of shares outstanding, calculating Lifeway Foods' enterprise value requires a different approach. It uses Lifeway Foods' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Lifeway Foods secures a last-minute Real Value of $8.63 per share. The latest price of the firm is $6.48. At this time, the firm appears to be undervalued. Our model forecasts the value of Lifeway Foods from analyzing the firm fundamentals such as Profit Margin of 2.78 %, return on equity of 6.90 %, and Current Valuation of 80.55 M as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend acquiring undervalued stocks and dropping overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
  
Lifeway Foods 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 Lifeway Foods'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 6.48
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.
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.
8.62
Real Value
13.50
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:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
5.485.966.45
Details
Hype
Prediction
LowEstimated ValueHigh
1.506.3711.24
Details
Naive
Forecast
LowNext ValueHigh
1.336.2011.08
Details
2 Analysts
Consensus
LowTarget PriceHigh
14.3515.1816.00
Details

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 beta category among related companies. It is currently regarded as number one stock in price to sales category among related companies fabricating about  0.48  of Price to Sales per Beta. The ratio of Beta to Price to Sales for Lifeway Foods is roughly  2.10 . 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.
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 2 people.

Lifeway Foods 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 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.
Quick Ratio1.62
Revenue Growth21.10%
Enterprise Value To Ebitda9.20
Enterprise Value To Revenue0.68
Additionally, see Correlation Analysis. 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 CEO Directory module to screen CEOs from public companies around the world.

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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 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.
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 Lifeway Foods value 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.