Encore Wire Valuation

WIRE Stock  USD 284.40  2.60  0.91%   
At this time, the firm appears to be overvalued. Encore Wire shows a prevailing Real Value of $239.54 per share. The current price of the firm is $284.4. Our model computes the value of Encore Wire from reviewing the firm fundamentals such as Profit Margin of 0.14 %, current valuation of 3.92 B, and Operating Margin of 0.13 % as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise purchasing undervalued instruments and exiting overvalued instruments since, at some point, asset prices and their ongoing real values will submerge. Key fundamental drivers impacting Encore Wire's valuation include:
Price Book
2.3583
Enterprise Value
3.9 B
Enterprise Value Ebitda
7.3656
Price Sales
1.6043
Trailing PE
13.1545
Overvalued
Today
284.40
Please note that Encore Wire's price fluctuation is very steady at this time. Calculation of the real value of Encore Wire is based on 3 months time horizon. Increasing Encore Wire's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Encore Wire is useful when determining the fair value of the Encore stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Encore Wire. Since Encore Wire is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Encore Stock. However, Encore Wire'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  284.4 Real  239.54 Target  238.67 Hype  284.4 Naive  286.03
The real value of Encore Stock, also known as its intrinsic value, is the underlying worth of Encore Wire Company, which is reflected in its stock price. It is based on Encore Wire's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Encore Wire'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 Encore Wire'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.
236.98
Downside
239.54
Real Value
312.84
Upside
Estimating the potential upside or downside of Encore Wire helps investors to forecast how Encore 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 Encore Wire more accurately as focusing exclusively on Encore Wire's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
3.513.713.91
Details
Hype
Prediction
LowEstimatedHigh
281.84284.40286.96
Details
Potential
Annual Dividend
LowForecastedHigh
0.050.050.05
Details
3 Analysts
Consensus
LowTarget PriceHigh
217.19238.67264.92
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Encore Wire's intrinsic value based on its ongoing forecasts of Encore Wire's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Encore Wire's closest peers. When choosing an evaluation method for Encore Wire, 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.

Encore Wire Investments

(153.32 Million)

Encore Valuation Trend

Knowing Encore Wire's actual value is paramount for traders to make sound investment determinations. Encore Wire's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Encore Wire's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Encore Wire'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.

Encore Market Cap

Encore Wire is rated below average in market capitalization category among related companies. Market capitalization of Industrials industry is at this time estimated at about 83.04 Billion. Encore Wire holds roughly 4.49 Billion in market capitalization claiming about 5% of equities under Industrials industry.
Capitalization  Workforce  Total debt  Valuation  Revenue

Encore Wire Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Encore Wire's current stock value. Our valuation model uses many indicators to compare Encore Wire value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Encore Wire competition to find correlations between indicators driving Encore Wire's intrinsic value. More Info.
Encore Wire is rated third in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about  0.08  of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Encore Wire is roughly  13.27 . The current year's Price To Book Ratio is expected to grow to 3.53. Comparative valuation analysis is a catch-all model that can be used if you cannot value Encore Wire by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Encore Wire'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 Encore Wire'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 Encore Wire'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 Encore Wire and how it compares across the competition.

About Encore Wire Valuation

The stock valuation mechanism determines the current worth of Encore Wire on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Encore Wire. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Encore Wire based exclusively on its fundamental and basic technical indicators. By analyzing Encore Wire'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 Encore Wire'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 Encore Wire. We calculate exposure to Encore Wire's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Encore Wire's related companies.
Last ReportedProjected for Next Year
Gross Profit655.9 M688.7 M
Pretax Profit Margin 0.19  0.20 
Operating Profit Margin 0.18  0.18 
Net Profit Margin 0.15  0.15 
Gross Profit Margin 0.26  0.13 

Encore Wire Quarterly Retained Earnings

2.51 Billion

8 Steps to conduct Encore Wire's Valuation Analysis

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

Encore Wire Dividends Analysis For Valuation

The current year's Dividend Payout Ratio is expected to grow to 0, whereas Dividends Paid is forecasted to decline to about 1.3 M. . At present, Encore Wire's Retained Earnings Total Equity is projected to increase significantly based on the last few years of reporting. The current year's Price Earnings Ratio is expected to grow to 14.36, whereas Earnings Yield is forecasted to decline to 0.06.
Last ReportedProjected for Next Year
Dividends Paid1.4 M1.3 M
Dividend Yield 0.0004  0.0004 
Dividend Payout Ratio 0  0 
Dividend Paid And Capex Coverage Ratio(2.79)(2.93)
There are various types of dividends Encore Wire 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 Encore 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 Encore Wire directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Encore pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Encore Wire by the value of the dividends paid out.

Encore Wire 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 Encore Wire 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 Outstanding17.2 M
Quarterly Earnings Growth Y O Y-0.504

Encore Wire Current Valuation Indicators

Valuation refers to the process of determining the present value of Encore Wire and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Encore we look at many different elements of the entity such as Encore's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Encore Wire'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 Encore Wire'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 Encore Wire, 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 Encore Wire'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 Encore Wire's worth.
When determining whether Encore Wire is a strong investment it is important to analyze Encore Wire'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 Encore Wire's future performance. For an informed investment choice regarding Encore Stock, refer to the following important reports:
Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Encore Wire. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area.
For information on how to trade Encore Stock refer to our How to Trade Encore Stock guide.
You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

Complementary Tools for Encore Stock analysis

When running Encore Wire's price analysis, check to measure Encore Wire'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 Encore Wire is operating at the current time. Most of Encore Wire's value examination focuses on studying past and present price action to predict the probability of Encore Wire's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Encore Wire's price. Additionally, you may evaluate how the addition of Encore Wire to your portfolios can decrease your overall portfolio volatility.
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Is Encore Wire'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 Encore Wire. If investors know Encore 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 Encore Wire 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
(0.50)
Dividend Share
0.08
Earnings Share
21.62
Revenue Per Share
152.179
Quarterly Revenue Growth
(0.09)
The market value of Encore Wire is measured differently than its book value, which is the value of Encore that is recorded on the company's balance sheet. Investors also form their own opinion of Encore Wire's value that differs from its market value or its book value, called intrinsic value, which is Encore Wire'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 Encore Wire's market value can be influenced by many factors that don't directly affect Encore Wire'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 Encore Wire's value and its price as these two are different measures arrived at by different means. Investors typically determine if Encore Wire is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Encore Wire'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.