Renesas Electronics Valuation

RNECY Stock  USD 8.90  0.14  1.60%   
At this time, the company appears to be overvalued. Renesas Electronics Corp holds a recent Real Value of $7.86 per share. The prevailing price of the company is $8.9. Our model determines the value of Renesas Electronics Corp from analyzing the company fundamentals such as Return On Equity of 0.19, operating margin of 0.28 %, and Shares Outstanding of 3.58 B as well as examining its technical indicators and probability of bankruptcy. In general, most investors support acquiring undervalued entities and dropping overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
Overvalued
Today
8.90
Please note that Renesas Electronics' price fluctuation is somewhat reliable at this time. Calculation of the real value of Renesas Electronics Corp is based on 3 months time horizon. Increasing Renesas Electronics' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Renesas Electronics Corp is useful when determining the fair value of the Renesas pink sheet, which is usually determined by what a typical buyer is willing to pay for full or partial control of Renesas Electronics. Since Renesas Electronics is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Renesas Pink Sheet. However, Renesas Electronics' 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  8.9 Real  7.86 Hype  8.9 Naive  8.97
The real value of Renesas Pink Sheet, also known as its intrinsic value, is the underlying worth of Renesas Electronics Corp Company, which is reflected in its stock price. It is based on Renesas Electronics' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Renesas Electronics' 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 Renesas Electronics' 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.
7.86
Real Value
10.59
Upside
Estimating the potential upside or downside of Renesas Electronics Corp helps investors to forecast how Renesas pink sheet's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Renesas Electronics more accurately as focusing exclusively on Renesas Electronics' fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
7.948.549.13
Details
Hype
Prediction
LowEstimatedHigh
6.178.9011.63
Details
Naive
Forecast
LowNext ValueHigh
6.258.9711.70
Details

Renesas Electronics Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Renesas Electronics's current stock value. Our valuation model uses many indicators to compare Renesas Electronics value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Renesas Electronics competition to find correlations between indicators driving Renesas Electronics's intrinsic value. More Info.
Renesas Electronics Corp is currently regarded as top stock in beta category among related companies. It is currently regarded as top stock in price to sales category among related companies fabricating about  0.01  of Price To Sales per Beta. The ratio of Beta to Price To Sales for Renesas Electronics Corp is roughly  115.12 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Renesas Electronics by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Renesas Electronics' Pink Sheet . 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 Renesas Electronics' 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 Renesas Electronics' 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 Renesas Electronics and how it compares across the competition.

About Renesas Electronics Valuation

The pink sheet valuation mechanism determines the current worth of Renesas Electronics Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Renesas Electronics Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Renesas Electronics Corp based exclusively on its fundamental and basic technical indicators. By analyzing Renesas Electronics'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 Renesas Electronics'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 Renesas Electronics. We calculate exposure to Renesas Electronics's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Renesas Electronics's related companies.
Renesas Electronics Corporation researches, develops, designs, manufactures, sells, and services semiconductors in Japan, China, North America, Europe, rest of Asia, and internationally. The company was incorporated in 2002 and is headquartered in Tokyo, Japan. RENESAS ELECTRONICS operates under Semiconductors classification in the United States and is traded on OTC Exchange.

8 Steps to conduct Renesas Electronics' Valuation Analysis

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

Renesas Electronics 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 Renesas Electronics 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 Outstanding3.8 B
Quarterly Earnings Growth Y O Y1.152
Forward Price Earnings14.5138
Retained Earnings578 B
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Renesas Electronics Corp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in main economic indicators.
Note that the Renesas Electronics Corp information on this page should be used as a complementary analysis to other Renesas Electronics' 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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When running Renesas Electronics' price analysis, check to measure Renesas Electronics' 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 Renesas Electronics is operating at the current time. Most of Renesas Electronics' value examination focuses on studying past and present price action to predict the probability of Renesas Electronics' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Renesas Electronics' price. Additionally, you may evaluate how the addition of Renesas Electronics to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Renesas Electronics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Renesas Electronics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Renesas Electronics' 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.