Community West Valuation
| CWBC Stock | USD 17.83 0.17 0.94% |
At this time, the firm appears to be overvalued. Community West Bancshares shows a prevailing Real Value of $15.41 per share. The current price of the firm is $17.83. Our model approximates the value of Community West Bancshares from analyzing the firm fundamentals such as Return On Equity of 0.11, profit margin of 0.26 %, and Current Valuation of 286.79 M as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor purchasing undervalued instruments and exiting overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting Community West's valuation include:
Price Book 1.6285 | Enterprise Value 286.8 M | Price Sales 3.7808 | Forward PE 6.8213 | Trailing PE 9.484 |
Overvalued
Today
Please note that Community West's price fluctuation is somewhat reliable at this time. Calculation of the real value of Community West Bancshares is based on 3 months time horizon. Increasing Community West's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Community West Bancshares is useful when determining the fair value of the Community stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Community West. Since Community West is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Community Stock. However, Community West'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 17.83 | Real 15.41 | Target 13.5 | Hype 17.85 | Naive 16.99 |
The real value of Community Stock, also known as its intrinsic value, is the underlying worth of Community West Bancshares Company, which is reflected in its stock price. It is based on Community West's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Community West'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 Community West'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.
Estimating the potential upside or downside of Community West Bancshares helps investors to forecast how Community 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 Community West more accurately as focusing exclusively on Community West's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Community West's intrinsic value based on its ongoing forecasts of Community West's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Community West's closest peers. When choosing an evaluation method for Community West Bancshares, 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.
Community West Investments |
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Community Valuation Trend
Knowing Community West's actual value is paramount for traders to make sound investment determinations. Community West's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Community West's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Community West'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.
Community Market Cap
Community West Bancshares is rated second in market capitalization category among related companies. Market capitalization of Financials industry is currently estimated at about 1.73 Billion. Community West retains roughly 336.46 Million in market capitalization claiming about 19% of equities under Financials industry.Community West Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Community West's current stock value. Our valuation model uses many indicators to compare Community West value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Community West competition to find correlations between indicators driving Community West's intrinsic value. More Info.Community West Bancshares is rated fourth in price to earning category among related companies. It is rated second in price to book category among related companies fabricating about 0.11 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Community West Bancshares is roughly 9.37 . The current year's Price To Book Ratio is expected to grow to 1.35. Comparative valuation analysis is a catch-all model that can be used if you cannot value Community West by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Community West'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 Community West'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 Community West'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 Community West and how it compares across the competition.
About Community West Valuation
The stock valuation mechanism determines the current worth of Community West Bancshares on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Community West Bancshares. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Community West Bancshares based exclusively on its fundamental and basic technical indicators. By analyzing Community West'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 Community West'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 Community West. We calculate exposure to Community West's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Community West's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 61.4 M | 35 M | |
| Pretax Profit Margin | 0.31 | 0.33 | |
| Operating Profit Margin | (0) | (0) | |
| Net Profit Margin | 0.23 | 0.25 | |
| Gross Profit Margin | 0.65 | 0.95 |
Community West Quarterly Retained Earnings |
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8 Steps to conduct Community West's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Community West'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 Community West's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Community West's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Community West's revenue streams: Identify Community West's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Community West's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Community West's growth potential: Evaluate Community West's management, business model, and growth potential.
- Determine Community West'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 Community West's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Community West represents a small ownership stake in the entity. As a stockholder of Community, 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.
Community West Dividends Analysis For Valuation
The current year's Dividends Paid is expected to grow to about 5.9 M, whereas Dividend Yield is forecasted to decline to 0.02. . At present, Community West's Retained Earnings Total Equity is projected to increase significantly based on the last few years of reporting. The current year's Earnings Yield is expected to grow to 0.13, whereas Earning Assets are forecasted to decline to about 151.2 M.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 5.7 M | 5.9 M | |
| Dividend Yield | 0.03 | 0.02 | |
| Dividend Payout Ratio | 0.22 | 0.18 | |
| Dividend Paid And Capex Coverage Ratio | (6.71) | (6.38) |
There are various types of dividends Community West 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 Community 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 Community West Bancshares directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Community pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Community West by the value of the dividends paid out.
Community West 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 Community West 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 Outstanding | 11.8 M | |
| Quarterly Earnings Growth Y O Y | -0.475 | |
| Forward Price Earnings | 6.8213 |
Community West Current Valuation Indicators
Valuation refers to the process of determining the present value of Community West Bancshares and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Community we look at many different elements of the entity such as Community's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Community West'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 Community West'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 Community West, 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 Community West'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 Community West's worth.When determining whether Community West Bancshares offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Community West'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 Community West Bancshares Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Community West Bancshares Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Community West Bancshares. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics. Note that the Community West Bancshares information on this page should be used as a complementary analysis to other Community West's 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Complementary Tools for Community Stock analysis
When running Community West's price analysis, check to measure Community West'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 Community West is operating at the current time. Most of Community West's value examination focuses on studying past and present price action to predict the probability of Community West's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Community West's price. Additionally, you may evaluate how the addition of Community West to your portfolios can decrease your overall portfolio volatility.
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Is Community West'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 Community West. If investors know Community 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 Community West 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 (0.47) | Dividend Share 0.48 | Earnings Share 1.88 | Revenue Per Share 7.389 | Quarterly Revenue Growth (0.11) |
The market value of Community West Bancshares is measured differently than its book value, which is the value of Community that is recorded on the company's balance sheet. Investors also form their own opinion of Community West's value that differs from its market value or its book value, called intrinsic value, which is Community West'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 Community West's market value can be influenced by many factors that don't directly affect Community West'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 Community West's value and its price as these two are different measures arrived at by different means. Investors typically determine if Community West is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Community West'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.