Sirius Stock Valuation

SIRI -  USA Stock  

USD 6.48  0.23  3.43%

Do you want to know what the current value of Sirius XM Holdings is today? 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 Sirius XM, is its stock price multiplied by the total number of shares outstanding, calculating Sirius XM's enterprise value requires a different approach. It uses Sirius XM's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Sirius XM Free Cash Flow is most likely to increase significantly in the upcoming years. The last year's value of Free Cash Flow was reported at 1.36 Billion. The current Enterprise Value is estimated to increase to about 26.2 B, while Tangible Asset Value is projected to decrease to roughly 2.6 B.
Sirius XM Holdings has a current Real Value of $7.13 per share. The regular price of the company is $6.48. At this time, the company appears to be undervalued. Our model measures the value of Sirius XM Holdings from inspecting the company fundamentals such as Shares Outstanding of 4.09 B, operating margin of 29.45 %, and Return On Equity of 0.93 % as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend locking in undervalued stocks and disposing overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.

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Sirius XM 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 Sirius XM'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
28th of July 2021
Share
Please note that Sirius XM's price fluctuation is somewhat reliable at this time. Calculation of the real value of Sirius XM Holdings is based on 3 months time horizon. Increasing Sirius XM's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Sirius XM Holdings is useful when determining the fair value of the Sirius stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Sirius XM. Since Sirius XM is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Sirius Stock. However, Sirius XM'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.
7.13
Real Value
9.02
Upside
Estimating the potential upside or downside of Sirius XM Holdings helps investors to forecast how Sirius 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 Sirius XM more accurately as focusing exclusively on Sirius XM's fundamentals will not take into account other important factors:
Earnings
Estimates (5)
LowProjected EPSHigh
0.210.240.26
Details
Hype
Prediction
LowEstimated ValueHigh
4.606.498.38
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.0216290.0217670.021905
Details
8 Analysts
Consensus
LowTarget PriceHigh
6.757.8010.25
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. Some money managers use Sirius XM's intrinsic value based on its ongoing forecasts of Sirius XM's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by look to relative valuation against Sirius XM's closest peers. When choosing a valuation method Sirius XM Holdings, make sure it is appropriate for the firm given its current financial situation and market classification. If more than one is valuation category is appropriate, we suggest using both methods to arrive at a better estimate.

Sirius XM Investments

6.99 MillionShare

Sirius Valuation Drivers Correlation

Many accounts on the financial statements of Sirius XM Holdings are highly interrelated and sometimes correlated. Consequently, when conducting Sirius's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Sirius
Click cells to compare fundamentals

Sirius Market Cap

Sirius XM Holdings is rated below average in market capitalization category among related companies. Market capitalization of Broadcasting industry is at this time estimated at about 2.58 Trillion. Sirius XM claims roughly 26.3 Billion in market capitalization contributing just under 2% to stocks in Broadcasting industry.
Capitalization  Revenue  Total debt  Workforce  Valuation

Sirius XM Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Sirius XM's current stock value. Our valuation model uses many indicators to compare Sirius XM value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Sirius XM competition to find correlations between indicators driving Sirius XM's intrinsic value. More Info.
Sirius XM Holdings is rated below average in price to book category among related companies. It is rated below average in price to sales category among related companies fabricating about  0.02  of Price to Sales per Price to Book. The ratio of Price to Book to Price to Sales for Sirius XM Holdings is roughly  57.79 . The current Price to Sales Ratio is estimated to increase to 5.15

About Sirius XM Valuation

The equity valuation mechanism determines the current worth of Sirius XM Holdings on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Sirius XM Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Sirius XM Holdings based exclusively on its fundamental and basic technical indicators. By analyzing Sirius XM'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 Sirius XM'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 Sirius XM. We calculate exposure to Sirius XM's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Sirius XM's related companies.
Last ReportedProjected for 2021
Gross Profit2.7 B2.9 B
Profit Margin 1.63  1.67 
Sirius XM Holdings Inc. provides satellite radio services on a subscription fee basis in the United States. Sirius XM Holdings Inc. is a subsidiary of Liberty Media Corporation. Sirius XM operates under Broadcasting classification in the United States and is traded on NASDAQ Exchange. It employs 5726 people.

Sirius XM Dividends Analysis For Valuation

The current Preferred Dividends Income Statement Impact is estimated to increase to about 180.8 M, while Payment of Dividends and Other Cash Distributions is projected to decrease to (46.7 M). . Sirius XM Earnings per Diluted Share are most likely to slightly decrease in the upcoming years. The last year's value of Earnings per Diluted Share was reported at 0.03. The current Earnings Before Interest Taxes and Depreciation Amortization EBITDA is estimated to increase to about 1.2 B, while Accumulated Retained Earnings Deficit are projected to decrease to (4.8 B).
Last ReportedProjected for 2021
Preferred Dividends Income Statement Impact167.6 M180.8 M
Payment of Dividends and Other Cash Distributions-43.3 M-46.7 M
Dividend Yield 0.0153  0.0152 
Dividends per Basic Common Share 0.045  0.0447 
There are various types of dividends Sirius XM 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 Sirius 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 Sirius XM Holdings directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Sirius pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Sirius XM by the value of the dividends paid out.

Sirius XM 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 Sirius XM 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 Ratio0.23
Earnings Quarterly Growth-25.30%
Revenue Growth5.40%
Payout Ratio559.02%
Enterprise Value To Ebitda14.59
Earnings Growth-19.90%
Enterprise Value To Revenue4.30

Sirius XM Current Valuation Indicators

Valuation refers to the process of determining the present value of Sirius XM Holdings and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Sirius we look at many different elements of the entity such as Sirius's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Additionally, take a look at World Market Map. Note that the Sirius XM Holdings information on this page should be used as a complementary analysis to other Sirius XM's 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

Complementary Tools for Sirius Stock analysis

When running Sirius XM Holdings price analysis, check to measure Sirius XM'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 Sirius XM is operating at the current time. Most of Sirius XM's value examination focuses on studying past and present price action to predict the probability of Sirius XM's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Sirius XM's price. Additionally, you may evaluate how the addition of Sirius XM to your portfolios can decrease your overall portfolio volatility.
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The market value of Sirius XM Holdings is measured differently than its book value, which is the value of Sirius that is recorded on the company's balance sheet. Investors also form their own opinion of Sirius XM's value that differs from its market value or its book value, called intrinsic value, which is Sirius XM'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 Sirius XM's market value can be influenced by many factors that don't directly affect Sirius XM Holdings underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Sirius XM's value and its price as these two are different measures arrived at by different means. Investors typically determine Sirius XM value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sirius XM'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.