SM Energy Valuation

SM Stock  USD 49.85  0.80  1.63%   
At this time, the company appears to be fairly valued. SM Energy owns a latest Real Value of $50.74 per share. The recent price of the company is $49.85. Our model measures the value of SM Energy from examining the company fundamentals such as Current Valuation of 6.59 B, return on equity of 0.24, and Profit Margin of 0.36 % as well as evaluating its technical indicators and probability of bankruptcy. In general, most investors recommend obtaining undervalued equities and abandoning overvalued equities since, sooner or later, asset prices and their ongoing real values will merge together.
Price Book
1.5583
Enterprise Value
6.6 B
Enterprise Value Ebitda
3.8871
Price Sales
2.4835
Forward PE
7.622
Fairly Valued
Today
49.85
Please note that SM Energy's price fluctuation is very steady at this time. Calculation of the real value of SM Energy is based on 3 months time horizon. Increasing SM Energy's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for SM Energy Co is useful when determining the fair value of the SM Energy stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of SM Energy. Since SM Energy is currently traded on the exchange, buyers and sellers on that exchange determine the market value of SM Energy Stock. However, SM Energy'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  49.85 Real  50.74 Target  49.75 Hype  49.04 Naive  49.3
The real value of SM Energy Stock, also known as its intrinsic value, is the underlying worth of SM Energy Company, which is reflected in its stock price. It is based on SM Energy's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of SM Energy'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 SM Energy'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.
50.74
Real Value
52.48
Upside
Estimating the potential upside or downside of SM Energy Co helps investors to forecast how SM Energy 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 SM Energy more accurately as focusing exclusively on SM Energy's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
1.081.241.34
Details
Hype
Prediction
LowEstimatedHigh
47.3049.0450.78
Details
Potential
Annual Dividend
LowForecastedHigh
0.310.310.32
Details
14 Analysts
Consensus
LowTarget PriceHigh
45.2749.7555.22
Details

SM Energy Investments

(1.22 Billion)

SM Energy Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining SM Energy's current stock value. Our valuation model uses many indicators to compare SM Energy value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across SM Energy competition to find correlations between indicators driving SM Energy's intrinsic value. More Info.
SM Energy Co is currently regarded as top stock in last dividend paid category among related companies. It is currently regarded as top stock in annual yield category among related companies fabricating about  0.02  of Annual Yield per Last Dividend Paid. The ratio of Last Dividend Paid to Annual Yield for SM Energy Co is roughly  42.57 . Comparative valuation analysis is a catch-all model that can be used if you cannot value SM Energy by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for SM Energy'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 SM Energy'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 SM Energy'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 SM Energy and how it compares across the competition.

About SM Energy Valuation

The stock valuation mechanism determines the current worth of SM Energy Co on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of SM Energy Co. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of SM Energy based exclusively on its fundamental and basic technical indicators. By analyzing SM Energy'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 SM Energy'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 SM Energy. We calculate exposure to SM Energy's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to SM Energy's related companies.
Last ReportedProjected for 2024
Gross Profit1.1 B1.2 B
Pretax Profit Margin 0.39  0.41 
Operating Profit Margin 0.42  0.44 
Net Profit Margin 0.35  0.36 
Gross Profit Margin 0.47  0.56 

8 Steps to conduct SM Energy's Valuation Analysis

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

SM Energy Dividends Analysis For Valuation

At this time, SM Energy's Dividend Yield is very stable compared to the past year. As of the 28th of March 2024, Dividend Payout Ratio is likely to grow to 0.09, though Dividends Paid is likely to grow to (68 M). . As of the 28th of March 2024, Retained Earnings is likely to grow to about 2.2 B, while Retained Earnings Total Equity is likely to drop about 846.1 M.
Last ReportedProjected for 2024
Dividends Paid-71.6 M-68 M
Dividend Yield 0.02  0.02 
Dividend Payout Ratio 0.09  0.09 
Dividend Paid And Capex Coverage Ratio(1.53)(1.61)
There are various types of dividends SM Energy 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 SM Energy 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 SM Energy Co directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When SM Energy pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of SM Energy by the value of the dividends paid out.

SM Energy 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 SM Energy 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 Outstanding119.2 M
Quarterly Earnings Growth Y O Y0.013
Forward Price Earnings7.622

SM Energy Current Valuation Indicators

Valuation refers to the process of determining the present value of SM Energy Co and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value SM Energy we look at many different elements of the entity such as SM Energy's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. SM Energy'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 SM Energy'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 SM Energy, 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 SM Energy'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 SM Energy's worth.
When determining whether SM Energy is a strong investment it is important to analyze SM Energy'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 SM Energy's future performance. For an informed investment choice regarding SM Energy 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 SM Energy Co. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.
You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

Complementary Tools for SM Energy Stock analysis

When running SM Energy's price analysis, check to measure SM Energy'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 SM Energy is operating at the current time. Most of SM Energy's value examination focuses on studying past and present price action to predict the probability of SM Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move SM Energy's price. Additionally, you may evaluate how the addition of SM Energy to your portfolios can decrease your overall portfolio volatility.
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Is SM Energy'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 SM Energy. If investors know SM Energy 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 SM Energy 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
0.013
Dividend Share
0.63
Earnings Share
6.86
Revenue Per Share
19.117
Quarterly Revenue Growth
(0.09)
The market value of SM Energy is measured differently than its book value, which is the value of SM Energy that is recorded on the company's balance sheet. Investors also form their own opinion of SM Energy's value that differs from its market value or its book value, called intrinsic value, which is SM Energy'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 SM Energy's market value can be influenced by many factors that don't directly affect SM Energy'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 SM Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if SM Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SM Energy'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.