Encore Stock Valuation

WIRE
 Stock
  

USD 138.77  8.04  5.48%   

What is the value of Encore Wire 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 Encore Wire, is its stock price multiplied by the total number of shares outstanding, calculating Encore Wire's enterprise value requires a different approach. It uses Encore Wire's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
As of December 5, 2022, Free Cash Flow is expected to decline to about 15.1 M. In addition to that, Enterprise Value is expected to decline to about 614.6 M.
Encore Wire shows a prevailing Real Value of $142.85 per share. The current price of the firm is $138.77. At this time, the firm appears to be fairly valued. Our model computes the value of Encore Wire from reviewing the firm fundamentals such as Operating Margin of 0.30 %, profit margin of 0.23 %, and Current Valuation of 2.12 B as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we advise purchasing undervalued instruments and exiting overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
  
Encore Wire 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 Encore Wire's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Encore Most Recent Valuation Data

Dividend Share
0.08
Beta
1.32
change Receivables
-216.8 M
Fiscal Year End
December
property Plant And Equipment Net
494.9 M
Enterprise Value
2.1 B
Fairly Valued
Today 138.77
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.
124.89
Downside
142.85
Real Value
145.73
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 (1)
LowProjected EPSHigh
21.7621.7621.76
Details
Hype
Prediction
LowEstimated ValueHigh
135.86138.74141.62
Details
2 Analysts
Consensus
LowTarget PriceHigh
150.00150.00150.00
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 Valuation Drivers Correlation

Many accounts on the financial statements of Encore Wire are highly interrelated and sometimes correlated. Consequently, when conducting Encore's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Encore
Click cells to compare fundamentals

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 second in market capitalization category among related companies. Market capitalization of Industrials industry is at this time estimated at about 7.09 Billion. Encore Wire totals roughly 2.69 Billion in market capitalization claiming about 38% of equities under Industrials industry.
Capitalization  Total debt  Valuation  Workforce  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 first in price to earning category among related companies. It is rated third in beta category among related companies totaling about  0.04  of Beta per Price to Earning. The ratio of Price to Earning to Beta for Encore Wire is roughly  23.79 . 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.
Fiscal Year End
December
Industry
Electrical Equipment & Parts
Concentration
Electrical Components & Equipment
Full Time Employees
1.4 K
Service Category
Electrical Equipment
Employer Id Number
75-2274963
Last ReportedProjected for 2022
Gross Profit138.1 M134.7 M
Profit Margin 20.88  22.53 
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

Encore Wire Dividends per Basic Common Share is projected to increase slightly based on the last few years of reporting. The past year's Dividends per Basic Common Share was at 0.09. Encore Wire Earning Before Interest and Taxes EBIT is projected to increase significantly based on the last few years of reporting. The past year's Earning Before Interest and Taxes EBIT was at 58.44 Million. The current year Earnings per Basic Share is expected to grow to 28.58, whereas Price to Earnings Ratio are forecasted to decline to 23.43.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-1.5 M-1.6 M
Dividend Yield 0.0023  0.002947 
Dividends per Basic Common Share 0.09  0.09 
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 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 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.
DescriptionEncore Wire Corporation manufactures and sells electrical building wires and cables for interior electrical wiring in the United States. The companys products include NM-B cables for use as interior wiring in homes, a
Quarterly Earnings Growth Y O Y0.172

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.
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When running Encore Wire 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 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.
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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 YOY
0.17
Market Capitalization
2.7 B
Quarterly Revenue Growth YOY
0.064
Return On Assets
0.35
Return On Equity
0.49
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 Encore Wire value 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.