FormFactor Valuation

FORM Stock  USD 44.85  1.46  3.36%   
At this time, the firm appears to be overvalued. FormFactor shows a prevailing Real Value of $41.45 per share. The current price of the firm is $44.85. Our model computes the value of FormFactor from reviewing the firm fundamentals such as Current Valuation of 3.09 B, shares outstanding of 77.6 M, and Profit Margin of 0.12 % as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise obtaining undervalued instruments and abandoning overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
Price Book
3.7049
Enterprise Value
3.1 B
Enterprise Value Ebitda
24.2787
Price Sales
5.0776
Forward PE
24.5098
Overvalued
Today
44.85
Please note that FormFactor's price fluctuation is very steady at this time. Calculation of the real value of FormFactor is based on 3 months time horizon. Increasing FormFactor's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for FormFactor is useful when determining the fair value of the FormFactor stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of FormFactor. Since FormFactor is currently traded on the exchange, buyers and sellers on that exchange determine the market value of FormFactor Stock. However, FormFactor'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  44.85 Real  41.45 Target  39.5 Hype  44.96 Naive  44.2
The real value of FormFactor Stock, also known as its intrinsic value, is the underlying worth of FormFactor Company, which is reflected in its stock price. It is based on FormFactor's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of FormFactor'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 FormFactor'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.
41.45
Real Value
49.34
Upside
Estimating the potential upside or downside of FormFactor helps investors to forecast how FormFactor 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 FormFactor more accurately as focusing exclusively on FormFactor's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.180.190.20
Details
Hype
Prediction
LowEstimatedHigh
42.0444.9647.88
Details
Naive
Forecast
LowNext ValueHigh
41.2844.2047.12
Details
11 Analysts
Consensus
LowTarget PriceHigh
35.9539.5043.85
Details

FormFactor Investments

(70 Million)

FormFactor Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining FormFactor's current stock value. Our valuation model uses many indicators to compare FormFactor value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across FormFactor competition to find correlations between indicators driving FormFactor's intrinsic value. More Info.
FormFactor is one of the top stocks in price to earning category among related companies. It is rated # 2 in price to sales category among related companies fabricating about  0.24  of Price To Sales per Price To Earning. The ratio of Price To Earning to Price To Sales for FormFactor is roughly  4.16 . As of the 28th of March 2024, Price To Sales Ratio is likely to grow to 3.40. Comparative valuation analysis is a catch-all model that can be used if you cannot value FormFactor by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for FormFactor'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 FormFactor'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 FormFactor'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 FormFactor and how it compares across the competition.

About FormFactor Valuation

The stock valuation mechanism determines the current worth of FormFactor on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of FormFactor. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of FormFactor based exclusively on its fundamental and basic technical indicators. By analyzing FormFactor'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 FormFactor'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 FormFactor. We calculate exposure to FormFactor's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to FormFactor's related companies.
Last ReportedProjected for 2024
Gross Profit258.6 M134.9 M
Pretax Profit Margin 0.07  0.07 
Operating Profit Margin 0.07  0.07 
Net Profit Margin 0.06  0.06 
Gross Profit Margin 0.46  0.37 

8 Steps to conduct FormFactor's Valuation Analysis

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

FormFactor 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 FormFactor 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 Outstanding78.2 M
Forward Price Earnings24.5098

FormFactor Current Valuation Indicators

Valuation refers to the process of determining the present value of FormFactor and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value FormFactor we look at many different elements of the entity such as FormFactor's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. FormFactor'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 FormFactor'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 FormFactor, 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 FormFactor'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 FormFactor's worth.
When determining whether FormFactor is a strong investment it is important to analyze FormFactor'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 FormFactor's future performance. For an informed investment choice regarding FormFactor Stock, refer to the following important reports:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in FormFactor. 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.
To learn how to invest in FormFactor Stock, please use our How to Invest in FormFactor guide.
You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

Complementary Tools for FormFactor Stock analysis

When running FormFactor's price analysis, check to measure FormFactor'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 FormFactor is operating at the current time. Most of FormFactor's value examination focuses on studying past and present price action to predict the probability of FormFactor's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move FormFactor's price. Additionally, you may evaluate how the addition of FormFactor to your portfolios can decrease your overall portfolio volatility.
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Is FormFactor'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 FormFactor. If investors know FormFactor 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 FormFactor listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
1.05
Revenue Per Share
8.571
Quarterly Revenue Growth
0.013
Return On Assets
0.0072
Return On Equity
0.096
The market value of FormFactor is measured differently than its book value, which is the value of FormFactor that is recorded on the company's balance sheet. Investors also form their own opinion of FormFactor's value that differs from its market value or its book value, called intrinsic value, which is FormFactor'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 FormFactor's market value can be influenced by many factors that don't directly affect FormFactor'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 FormFactor's value and its price as these two are different measures arrived at by different means. Investors typically determine if FormFactor is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, FormFactor'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.