Solid Power Valuation
| SLDP Stock | USD 1.58 0.01 0.63% |
Based on Macroaxis valuation methodology, the company appears to be undervalued. Solid Power has a current Real Value of $2.06 per share. The regular price of the company is $1.58. Our model measures the value of Solid Power from inspecting the company fundamentals such as Current Valuation of 119.64 M, shares owned by insiders of 21.06 %, and Return On Equity of -0.12 as well as reviewing 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 draw towards each other. Key fundamental drivers impacting Solid Power's valuation include:
Price Book 0.5767 | Enterprise Value 119.6 M | Enterprise Value Ebitda (2.35) | Price Sales 16.6722 | Enterprise Value Revenue 7.1094 |
Undervalued
Today
Please note that Solid Power's price fluctuation is dangerous at this time. Calculation of the real value of Solid Power is based on 3 months time horizon. Increasing Solid Power's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Solid Power is useful when determining the fair value of the Solid stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Solid Power. Since Solid Power is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Solid Stock. However, Solid Power'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 1.58 | Real 2.06 | Target 3.5 | Hype 1.59 |
The real value of Solid Stock, also known as its intrinsic value, is the underlying worth of Solid Power Company, which is reflected in its stock price. It is based on Solid Power's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Solid Power'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 Solid Power'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 Solid Power helps investors to forecast how Solid 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 Solid Power more accurately as focusing exclusively on Solid Power's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Solid Power's intrinsic value based on its ongoing forecasts of Solid Power's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Solid Power's closest peers. When choosing an evaluation method for Solid Power, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Solid Power Investments |
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Solid Valuation Trend
Knowing Solid Power's actual value is paramount for traders to make sound investment determinations. Solid Power's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Solid Power's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Solid Power's 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.
Solid Market Cap
Solid Power is rated second in market capitalization category among related companies. Market capitalization of Industrials industry is at this time estimated at about 2.16 Billion. Solid Power retains roughly 284.86 Million in market capitalization claiming about 13% of equities under Industrials industry.Solid Power Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Solid Power's current stock value. Our valuation model uses many indicators to compare Solid Power value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Solid Power competition to find correlations between indicators driving Solid Power's intrinsic value. More Info.Solid Power is rated second in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.02 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Solid Power is roughly 47.49 . As of 04/19/2024, Price To Book Ratio is likely to drop to 0.49. Comparative valuation analysis is a catch-all model that can be used if you cannot value Solid Power by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Solid Power'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 Solid Power'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 Solid Power'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 Solid Power and how it compares across the competition.
About Solid Power Valuation
The stock valuation mechanism determines the current worth of Solid Power on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Solid Power. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Solid Power based exclusively on its fundamental and basic technical indicators. By analyzing Solid Power'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 Solid Power'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 Solid Power. We calculate exposure to Solid Power's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Solid Power's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | -10.3 M | -9.8 M | |
| Pretax Profit Margin | (3.77) | (3.58) | |
| Operating Profit Margin | (5.21) | (5.47) | |
| Net Loss | (3.77) | (3.58) | |
| Gross Profit Margin | (0.59) | (0.56) |
8 Steps to conduct Solid Power's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Solid Power'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 Solid Power's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Solid Power's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Solid Power's revenue streams: Identify Solid Power's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Solid Power's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Solid Power's growth potential: Evaluate Solid Power's management, business model, and growth potential.
- Determine Solid Power'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 Solid Power's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Solid Power 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 Solid Power 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 | 178 M |
Solid Power Current Valuation Indicators
Valuation refers to the process of determining the present value of Solid Power and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Solid we look at many different elements of the entity such as Solid's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Solid Power'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 Solid Power'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 Solid Power, 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 Solid Power'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 Solid Power's worth.When determining whether Solid Power is a strong investment it is important to analyze Solid Power's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Solid Power's future performance. For an informed investment choice regarding Solid Stock, refer to the following important reports: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Solid Power. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment. To learn how to invest in Solid Stock, please use our How to Invest in Solid Power guide.Note that the Solid Power information on this page should be used as a complementary analysis to other Solid Power'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 the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Complementary Tools for Solid Stock analysis
When running Solid Power's price analysis, check to measure Solid Power'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 Solid Power is operating at the current time. Most of Solid Power's value examination focuses on studying past and present price action to predict the probability of Solid Power's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Solid Power's price. Additionally, you may evaluate how the addition of Solid Power to your portfolios can decrease your overall portfolio volatility.
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Is Solid Power'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 Solid Power. If investors know Solid 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 Solid Power listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.37) | Revenue Per Share 0.098 | Quarterly Revenue Growth (0.44) | Return On Assets (0.10) | Return On Equity (0.12) |
The market value of Solid Power is measured differently than its book value, which is the value of Solid that is recorded on the company's balance sheet. Investors also form their own opinion of Solid Power's value that differs from its market value or its book value, called intrinsic value, which is Solid Power'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 Solid Power's market value can be influenced by many factors that don't directly affect Solid Power'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 Solid Power's value and its price as these two are different measures arrived at by different means. Investors typically determine if Solid Power is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Solid Power'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.