Shockwave Medical Valuation

SWAV Stock  USD 322.61  6.54  2.07%   
At this time, the company appears to be overvalued. Shockwave Medical has a current Real Value of $305.81 per share. The regular price of the company is $322.61. Our model measures the value of Shockwave Medical from inspecting the company fundamentals such as Return On Equity of 0.25, operating margin of 0.22 %, and Shares Outstanding of 37.4 M as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend buying undervalued stocks and disposing overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
Price Book
17.6767
Enterprise Value
11.6 B
Enterprise Value Ebitda
60.5608
Price Sales
16.1867
Forward PE
66.2252
Overvalued
Today
322.61
Please note that Shockwave Medical's price fluctuation is very steady at this time. Calculation of the real value of Shockwave Medical is based on 3 months time horizon. Increasing Shockwave Medical's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Shockwave Medical is useful when determining the fair value of the Shockwave stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Shockwave Medical. Since Shockwave Medical is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Shockwave Stock. However, Shockwave Medical'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  322.61 Real  305.81 Target  270.82 Hype  319.45 Naive  342.65
The real value of Shockwave Stock, also known as its intrinsic value, is the underlying worth of Shockwave Medical Company, which is reflected in its stock price. It is based on Shockwave Medical's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Shockwave Medical'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 Shockwave Medical'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.
303.20
Downside
305.81
Real Value
354.87
Upside
Estimating the potential upside or downside of Shockwave Medical helps investors to forecast how Shockwave 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 Shockwave Medical more accurately as focusing exclusively on Shockwave Medical's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.830.961.25
Details
Hype
Prediction
LowEstimatedHigh
316.84319.45354.87
Details
Naive
Forecast
LowNext ValueHigh
340.04342.65345.27
Details
11 Analysts
Consensus
LowTarget PriceHigh
246.45270.82300.61
Details

Shockwave Medical Investments

(594.44 Million)

Shockwave Medical Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Shockwave Medical's current stock value. Our valuation model uses many indicators to compare Shockwave Medical value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Shockwave Medical competition to find correlations between indicators driving Shockwave Medical's intrinsic value. More Info.
Shockwave Medical is currently regarded as top stock in price to book category among related companies. It is rated below average in net asset category among related companies making up about  88,623,046  of Net Asset per Price To Book. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Shockwave Medical by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Shockwave Medical'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 Shockwave Medical'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 Shockwave Medical'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 Shockwave Medical and how it compares across the competition.

About Shockwave Medical Valuation

The stock valuation mechanism determines the current worth of Shockwave Medical on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Shockwave Medical. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Shockwave Medical based exclusively on its fundamental and basic technical indicators. By analyzing Shockwave Medical'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 Shockwave Medical'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 Shockwave Medical. We calculate exposure to Shockwave Medical's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Shockwave Medical's related companies.
Last ReportedProjected for 2024
Gross Profit634.8 M666.6 M
Pretax Profit Margin 0.24  0.25 
Operating Profit Margin 0.23  0.24 
Net Profit Margin 0.20  0.21 
Gross Profit Margin 0.87  0.91 

8 Steps to conduct Shockwave Medical's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Shockwave Medical'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 Shockwave Medical's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Shockwave Medical's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Shockwave Medical's revenue streams: Identify Shockwave Medical's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Shockwave Medical's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Shockwave Medical's growth potential: Evaluate Shockwave Medical's management, business model, and growth potential.
  • Determine Shockwave Medical'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 Shockwave Medical'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.

Shockwave Medical 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 Shockwave Medical 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 Outstanding38.2 M
Quarterly Earnings Growth Y O Y-0.689
Forward Price Earnings66.2252

Shockwave Medical Current Valuation Indicators

Valuation refers to the process of determining the present value of Shockwave Medical and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Shockwave we look at many different elements of the entity such as Shockwave's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Shockwave Medical'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 Shockwave Medical'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 Shockwave Medical, 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 Shockwave Medical'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 Shockwave Medical's worth.
When determining whether Shockwave Medical is a strong investment it is important to analyze Shockwave Medical'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 Shockwave Medical's future performance. For an informed investment choice regarding Shockwave 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 Shockwave Medical. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
For more information on how to buy Shockwave Stock please use our How to Invest in Shockwave Medical guide.
Note that the Shockwave Medical information on this page should be used as a complementary analysis to other Shockwave Medical'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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

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When running Shockwave Medical's price analysis, check to measure Shockwave Medical'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 Shockwave Medical is operating at the current time. Most of Shockwave Medical's value examination focuses on studying past and present price action to predict the probability of Shockwave Medical's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Shockwave Medical's price. Additionally, you may evaluate how the addition of Shockwave Medical to your portfolios can decrease your overall portfolio volatility.
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Is Shockwave Medical'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 Shockwave Medical. If investors know Shockwave 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 Shockwave Medical 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
(0.69)
Earnings Share
3.86
Revenue Per Share
19.894
Quarterly Revenue Growth
0.409
Return On Assets
0.0938
The market value of Shockwave Medical is measured differently than its book value, which is the value of Shockwave that is recorded on the company's balance sheet. Investors also form their own opinion of Shockwave Medical's value that differs from its market value or its book value, called intrinsic value, which is Shockwave Medical'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 Shockwave Medical's market value can be influenced by many factors that don't directly affect Shockwave Medical'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 Shockwave Medical's value and its price as these two are different measures arrived at by different means. Investors typically determine if Shockwave Medical is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Shockwave Medical'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.