Nutrien Valuation
| NTR Stock | USD 51.81 0.14 0.27% |
At this time, the firm appears to be overvalued. Nutrien secures a last-minute Real Value of $43.82 per share. The latest price of the firm is $51.81. Our model forecasts the value of Nutrien from analyzing the firm fundamentals such as Current Valuation of 37.22 B, profit margin of 0.04 %, and Return On Equity of 0.0502 as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend buying undervalued stocks and selling overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
Overvalued
Today
Please note that Nutrien's price fluctuation is very steady at this time. Calculation of the real value of Nutrien is based on 3 months time horizon. Increasing Nutrien's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Nutrien is useful when determining the fair value of the Nutrien stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Nutrien. Since Nutrien is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Nutrien Stock. However, Nutrien'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. | Historical | Market 51.81 | Real 43.82 | Hype 51.81 | Naive 49.39 |
The real value of Nutrien Stock, also known as its intrinsic value, is the underlying worth of Nutrien Company, which is reflected in its stock price. It is based on Nutrien's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Nutrien's 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 Nutrien's 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 Nutrien helps investors to forecast how Nutrien 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 Nutrien more accurately as focusing exclusively on Nutrien's fundamentals will not take into account other important factors: Nutrien Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Nutrien's current stock value. Our valuation model uses many indicators to compare Nutrien value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Nutrien competition to find correlations between indicators driving Nutrien's intrinsic value. More Info.Nutrien is regarded second in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.01 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Nutrien is roughly 72.56 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Nutrien by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Nutrien's 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 Nutrien's 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 Nutrien's 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 Nutrien and how it compares across the competition.
About Nutrien Valuation
The stock valuation mechanism determines the current worth of Nutrien on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Nutrien. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Nutrien based exclusively on its fundamental and basic technical indicators. By analyzing Nutrien'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 Nutrien'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 Nutrien. We calculate exposure to Nutrien's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Nutrien's related companies.It offers potash, nitrogen, phosphate, and sulfate products and financial solutions. The company was founded in 2017 and is headquartered in Saskatoon, Canada. Nutrien operates under Agricultural Inputs classification in the United States and is traded on New York Stock Exchange. It employs 23500 people.
8 Steps to conduct Nutrien's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Nutrien's 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 Nutrien's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Nutrien's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Nutrien's revenue streams: Identify Nutrien's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Nutrien's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Nutrien's growth potential: Evaluate Nutrien's management, business model, and growth potential.
- Determine Nutrien's 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 Nutrien's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Nutrien represents a small ownership stake in the entity. As a stockholder of Nutrien, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Nutrien Dividends Analysis For Valuation
There are various types of dividends Nutrien 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 Nutrien 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 Nutrien directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Nutrien pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Nutrien by the value of the dividends paid out.
Nutrien 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 Nutrien 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 | 497 M | |
| Quarterly Earnings Growth Y O Y | -0.838 | |
| Forward Price Earnings | 13.3333 |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Nutrien. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate. To learn how to invest in Nutrien Stock, please use our How to Invest in Nutrien guide.You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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When running Nutrien's price analysis, check to measure Nutrien'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 Nutrien is operating at the current time. Most of Nutrien's value examination focuses on studying past and present price action to predict the probability of Nutrien's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Nutrien's price. Additionally, you may evaluate how the addition of Nutrien to your portfolios can decrease your overall portfolio volatility.
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Is Nutrien's 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 Nutrien. If investors know Nutrien 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 Nutrien 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 Nutrien is measured differently than its book value, which is the value of Nutrien that is recorded on the company's balance sheet. Investors also form their own opinion of Nutrien's value that differs from its market value or its book value, called intrinsic value, which is Nutrien'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 Nutrien's market value can be influenced by many factors that don't directly affect Nutrien's 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 Nutrien's value and its price as these two are different measures arrived at by different means. Investors typically determine if Nutrien is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nutrien'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.