Timken Stock Valuation

TMST -  USA Stock  

USD 20.44  0.59  2.97%

What would the acquisition value of Timken Steel Corp be 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 Timken Steel, is its stock price multiplied by the total number of shares outstanding, calculating Timken Steel's enterprise value requires a different approach. It uses Timken Steel's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Timken Steel Corp has a current Real Value of $21.18 per share. The regular price of the company is $20.44. At this time, the company appears to be undervalued. Our model measures the value of Timken Steel Corp from inspecting the company fundamentals such as Operating Margin of 15.75 %, shares outstanding of 46.21 M, and Return On Equity of 17.81 % as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend acquiring undervalued stocks and selling overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
  
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Timken Steel 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 Timken Steel'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 20.44
Share
Please note that Timken Steel's price fluctuation is not too volatile at this time. Calculation of the real value of Timken Steel Corp is based on 3 months time horizon. Increasing Timken Steel's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Timken Steel Corp is useful when determining the fair value of the Timken stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Timken Steel. Since Timken Steel is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Timken Stock. However, Timken Steel'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.
21.18
Real Value
25.77
Upside
Estimating the potential upside or downside of Timken Steel Corp helps investors to forecast how Timken 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 Timken Steel more accurately as focusing exclusively on Timken Steel's fundamentals will not take into account other important factors:
Earnings
Estimates (1)
LowProjected EPSHigh
3.033.033.03
Details
Hype
Prediction
LowEstimated ValueHigh
15.2919.8824.47
Details
1 Analysts
Consensus
LowTarget PriceHigh
20.0020.0020.00
Details

Timken Steel Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Timken Steel's current stock value. Our valuation model uses many indicators to compare Timken Steel value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Timken Steel competition to find correlations between indicators driving Timken Steel's intrinsic value. More Info.
Timken Steel Corp is rated second in price to earning category among related companies. It is rated fifth in price to book category among related companies fabricating about  0.15  of Price to Book per Price to Earning. The ratio of Price to Earning to Price to Book for Timken Steel Corp is roughly  6.80 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Timken Steel by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Timken Steel'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 Timken Steel'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 Timken Steel'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 Timken Steel and how it compares across the competition.

About Timken Steel Valuation

The equity valuation mechanism determines the current worth of Timken Steel Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Timken Steel Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Timken Steel Corp based exclusively on its fundamental and basic technical indicators. By analyzing Timken Steel'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 Timken Steel'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 Timken Steel. We calculate exposure to Timken Steel's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Timken Steel's related companies.
TimkenSteel Corporation manufactures and sells alloy steel, and carbon and micro-alloy steel products in the United States and internationally. TimkenSteel Corporation was incorporated in 2013 and is headquartered in Canton, Ohio. Timken Steel operates under Steel classification in the United States and is traded on New York Stock Exchange. It employs 2000 people.

Timken Steel 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 Timken Steel 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 Ratio1.25
Revenue Growth66.90%
Enterprise Value To Ebitda3.91
Enterprise Value To Revenue0.62
Additionally, take a look at World Market Map. Note that the Timken Steel Corp information on this page should be used as a complementary analysis to other Timken Steel'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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

Complementary Tools for Timken Stock analysis

When running Timken Steel Corp price analysis, check to measure Timken Steel'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 Timken Steel is operating at the current time. Most of Timken Steel's value examination focuses on studying past and present price action to predict the probability of Timken Steel's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Timken Steel's price. Additionally, you may evaluate how the addition of Timken Steel to your portfolios can decrease your overall portfolio volatility.
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Is Timken Steel'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 Timken Steel. If investors know Timken 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 Timken Steel listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Timken Steel Corp is measured differently than its book value, which is the value of Timken that is recorded on the company's balance sheet. Investors also form their own opinion of Timken Steel's value that differs from its market value or its book value, called intrinsic value, which is Timken Steel'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 Timken Steel's market value can be influenced by many factors that don't directly affect Timken Steel'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 Timken Steel's value and its price as these two are different measures arrived at by different means. Investors typically determine Timken Steel value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Timken Steel'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.