Northwest Natural Valuation

NWN Stock  USD 37.22  0.55  1.50%   
At this time, the firm appears to be undervalued. Northwest Natural Gas secures a last-minute Real Value of $43.19 per share. The latest price of the firm is $37.22. Our model forecasts the value of Northwest Natural Gas from analyzing the firm fundamentals such as Profit Margin of 0.08 %, return on equity of 0.0763, and Current Valuation of 3.05 B as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend obtaining undervalued stocks and abandoning overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
Price Book
1.0448
Enterprise Value
3.1 B
Enterprise Value Ebitda
9.3001
Price Sales
1.1201
Forward PE
14.0449
Undervalued
Today
37.22
Please note that Northwest Natural's price fluctuation is very steady at this time. Calculation of the real value of Northwest Natural Gas is based on 3 months time horizon. Increasing Northwest Natural's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Northwest Natural Gas is useful when determining the fair value of the Northwest stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Northwest Natural. Since Northwest Natural is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Northwest Stock. However, Northwest Natural'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  37.22 Real  43.19 Target  49.33 Hype  36.64
The real value of Northwest Stock, also known as its intrinsic value, is the underlying worth of Northwest Natural Gas Company, which is reflected in its stock price. It is based on Northwest Natural's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Northwest Natural'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 Northwest Natural'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.
43.19
Real Value
45.38
Upside
Estimating the potential upside or downside of Northwest Natural Gas helps investors to forecast how Northwest 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 Northwest Natural more accurately as focusing exclusively on Northwest Natural's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
1.831.891.99
Details
Hype
Prediction
LowEstimatedHigh
34.4536.6438.83
Details
5 Analysts
Consensus
LowTarget PriceHigh
44.8949.3354.76
Details

Northwest Natural Investments

(407.53 Million)

Northwest Natural Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Northwest Natural's current stock value. Our valuation model uses many indicators to compare Northwest Natural value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Northwest Natural competition to find correlations between indicators driving Northwest Natural's intrinsic value. More Info.
Northwest Natural Gas is considered to be number one stock in five year return category among related companies. It is considered to be number one stock in annual yield category among related companies fabricating about  0.02  of Annual Yield per Five Year Return. The ratio of Five Year Return to Annual Yield for Northwest Natural Gas is roughly  61.50 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Northwest Natural by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Northwest Natural'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 Northwest Natural'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 Northwest Natural'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 Northwest Natural and how it compares across the competition.

About Northwest Natural Valuation

The stock valuation mechanism determines the current worth of Northwest Natural Gas on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Northwest Natural Gas. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Northwest Natural Gas based exclusively on its fundamental and basic technical indicators. By analyzing Northwest Natural'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 Northwest Natural'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 Northwest Natural. We calculate exposure to Northwest Natural's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Northwest Natural's related companies.
Last ReportedProjected for 2024
Gross Profit152.6 M234 M
Pretax Profit Margin 0.11  0.14 
Operating Profit Margin 0.04  0.04 
Net Profit Margin 0.08  0.09 
Gross Profit Margin 0.13  0.12 

Northwest Natural Quarterly Retained Earnings

399.91 Million

8 Steps to conduct Northwest Natural's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Northwest Natural'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 Northwest Natural's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Northwest Natural's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Northwest Natural's revenue streams: Identify Northwest Natural's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Northwest Natural's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Northwest Natural's growth potential: Evaluate Northwest Natural's management, business model, and growth potential.
  • Determine Northwest Natural'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 Northwest Natural's 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.
Northwest Natural's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Northwest Natural's value is low or high relative to the company's performance and growth projections. Determining the market value of Northwest Natural can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Northwest Natural represents a small ownership stake in the entity. As a stockholder of Northwest, 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.

Northwest Natural Dividends Analysis For Valuation

As of the 28th of March 2024, Dividend Payout Ratio is likely to grow to 0.75, though Dividends Paid is likely to grow to (64 M). . As of the 28th of March 2024, Price Earnings To Growth Ratio is likely to grow to 8.01, while Retained Earnings are likely to drop about 289.3 M.
Last ReportedProjected for 2024
Dividends Paid-67.3 M-64 M
Dividend Yield 0.05  0.05 
Dividend Payout Ratio 0.72  0.75 
Dividend Paid And Capex Coverage Ratio(1.08)(1.13)
There are various types of dividends Northwest Natural 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 Northwest 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 Northwest Natural Gas directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Northwest pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Northwest Natural by the value of the dividends paid out.

Northwest Natural 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 Northwest Natural 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 Outstanding36.3 M
Quarterly Earnings Growth Y O Y-0.114
Forward Price Earnings14.0449

Northwest Natural Current Valuation Indicators

Valuation refers to the process of determining the present value of Northwest Natural Gas and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Northwest we look at many different elements of the entity such as Northwest's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Northwest Natural's 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 Northwest Natural's 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 Northwest Natural, 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 Northwest Natural's 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 Northwest Natural's worth.
When determining whether Northwest Natural Gas offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Northwest Natural's 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 Northwest Natural Gas Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Northwest Natural Gas Stock:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Northwest Natural Gas. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in housing.
You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

Complementary Tools for Northwest Stock analysis

When running Northwest Natural's price analysis, check to measure Northwest Natural'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 Northwest Natural is operating at the current time. Most of Northwest Natural's value examination focuses on studying past and present price action to predict the probability of Northwest Natural's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Northwest Natural's price. Additionally, you may evaluate how the addition of Northwest Natural to your portfolios can decrease your overall portfolio volatility.
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Content Syndication
Quickly integrate customizable finance content to your own investment portal
AI Investment Finder
Use AI to screen and filter profitable investment opportunities
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Is Northwest Natural'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 Northwest Natural. If investors know Northwest 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 Northwest Natural 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
(0.11)
Dividend Share
1.943
Earnings Share
2.59
Revenue Per Share
33.068
Quarterly Revenue Growth
(0.05)
The market value of Northwest Natural Gas is measured differently than its book value, which is the value of Northwest that is recorded on the company's balance sheet. Investors also form their own opinion of Northwest Natural's value that differs from its market value or its book value, called intrinsic value, which is Northwest Natural'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 Northwest Natural's market value can be influenced by many factors that don't directly affect Northwest Natural'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 Northwest Natural's value and its price as these two are different measures arrived at by different means. Investors typically determine if Northwest Natural is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Northwest Natural'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.