Babcock Wilcox Valuation

BW Stock  USD 0.78  0.21  21.21%   
Babcock Wilcox is undervalued. Babcock Wilcox Enter shows a prevailing Real Value of $3.01 per share. The current price of the firm is $0.78. Our model approximates the value of Babcock Wilcox Enter from analyzing the firm fundamentals such as profit margin of (0.20) %, and Return On Equity of -3.47 as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor buying undervalued instruments and disposing overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Price Book
60.5649
Enterprise Value
474.5 M
Enterprise Value Ebitda
8.3729
Price Sales
0.0743
Forward PE
140.8451
Undervalued
Today
0.78
Please note that Babcock Wilcox's price fluctuation is dangerous at this time. Calculation of the real value of Babcock Wilcox Enter is based on 3 months time horizon. Increasing Babcock Wilcox's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Babcock Wilcox Enterprises is useful when determining the fair value of the Babcock stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Babcock Wilcox. Since Babcock Wilcox is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Babcock Stock. However, Babcock Wilcox'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  0.78 Real  3.01 Target  9.75 Hype  0.92
The real value of a stock, also known as the intrinsic value, is the underlying worth of a company that is reflected in its stock price. It is based on the company's financial performance, assets, liabilities, growth prospects, management team, industry conditions, and other relevant factors. The real value of a stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, price-to-book ratio, and other valuation metrics. The real value of a stock 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 the stock's price. It is important to note that the real value of a stock is not a fixed number and may change over time based on changes in the company's performance and other relevant factors.
3.01
Real Value
10.42
Upside
Estimating the potential upside or downside of Babcock Wilcox Enterprises helps investors to forecast how Babcock 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 Babcock Wilcox more accurately as focusing exclusively on Babcock Wilcox's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
-0.2-0.14-0.07
Details
Hype
Prediction
LowEstimatedHigh
0.050.928.33
Details
4 Analysts
Consensus
LowTarget PriceHigh
8.879.7510.82
Details

Babcock Wilcox Investments

(8.33 Million)

Babcock Wilcox Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Babcock Wilcox's current stock value. Our valuation model uses many indicators to compare Babcock Wilcox value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Babcock Wilcox competition to find correlations between indicators driving Babcock Wilcox's intrinsic value. More Info.
Babcock Wilcox Enterprises is number one stock in price to earning category among related companies. It is rated below average in net asset category among related companies making up about  18,115,320  of Net Asset per Price To Earning. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Babcock Wilcox by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Babcock Wilcox'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 Babcock Wilcox'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 Babcock Wilcox'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 Babcock Wilcox and how it compares across the competition.

About Babcock Wilcox Valuation

The stock valuation mechanism determines the current worth of Babcock Wilcox Enterprises on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Babcock Wilcox Enterprises. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Babcock Wilcox Enter based exclusively on its fundamental and basic technical indicators. By analyzing Babcock Wilcox'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 Babcock Wilcox'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 Babcock Wilcox. We calculate exposure to Babcock Wilcox's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Babcock Wilcox's related companies.
Last ReportedProjected for 2024
Gross Profit224.1 M166.7 M
Pretax Profit Margin(0.07)(0.07)
Operating Profit Margin 0.03  0.03 
Net Loss(0.20)(0.21)
Gross Profit Margin 0.22  0.14 

8 Steps to conduct Babcock Wilcox's Valuation Analysis

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

Babcock Wilcox 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 Babcock Wilcox 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 Outstanding89 M
Quarterly Earnings Growth Y O Y-0.935
Forward Price Earnings140.8451

Babcock Wilcox Current Valuation Indicators

Valuation refers to the process of determining the present value of Babcock Wilcox Enterprises and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Babcock we look at many different elements of the entity such as Babcock's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Babcock Wilcox'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 Babcock Wilcox'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 Babcock Wilcox, 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 Babcock Wilcox'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 Babcock Wilcox's worth.
When determining whether Babcock Wilcox Enter offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Babcock Wilcox's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Babcock Wilcox Enterprises Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Babcock Wilcox Enterprises Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Babcock Wilcox Enterprises. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in housing.
You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

Complementary Tools for Babcock Stock analysis

When running Babcock Wilcox's price analysis, check to measure Babcock Wilcox'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 Babcock Wilcox is operating at the current time. Most of Babcock Wilcox's value examination focuses on studying past and present price action to predict the probability of Babcock Wilcox's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Babcock Wilcox's price. Additionally, you may evaluate how the addition of Babcock Wilcox to your portfolios can decrease your overall portfolio volatility.
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Is Babcock Wilcox'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 Babcock Wilcox. If investors know Babcock 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 Babcock Wilcox 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
(0.94)
Earnings Share
(0.49)
Revenue Per Share
11.227
Quarterly Revenue Growth
(0.04)
Return On Assets
(0.01)
The market value of Babcock Wilcox Enter is measured differently than its book value, which is the value of Babcock that is recorded on the company's balance sheet. Investors also form their own opinion of Babcock Wilcox's value that differs from its market value or its book value, called intrinsic value, which is Babcock Wilcox'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 Babcock Wilcox's market value can be influenced by many factors that don't directly affect Babcock Wilcox'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 Babcock Wilcox's value and its price as these two are different measures arrived at by different means. Investors typically determine if Babcock Wilcox is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Babcock Wilcox'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.