Essity AB Valuation
| ESSITY-A | SEK 274.00 2.50 0.90% |
At this time, the firm appears to be undervalued. Essity AB shows a prevailing Real Value of kr310.78 per share. The current price of the firm is kr274.0. Our model computes the value of Essity AB from reviewing the firm fundamentals such as Shares Outstanding of 61.16 M, profit margin of 0.04 %, and Current Valuation of 240.68 B as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise taking in undervalued instruments and trading overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
Undervalued
Today
Please note that Essity AB's price fluctuation is very steady at this time. Calculation of the real value of Essity AB is based on 3 months time horizon. Increasing Essity AB's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Essity AB is useful when determining the fair value of the Essity stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Essity AB. Since Essity AB is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Essity Stock. However, Essity AB'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 274.0 | Real 310.78 | Hype 274.0 | Naive 284.7 |
The real value of Essity Stock, also known as its intrinsic value, is the underlying worth of Essity AB Company, which is reflected in its stock price. It is based on Essity AB's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Essity AB'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 Essity AB'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 Essity AB helps investors to forecast how Essity 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 Essity AB more accurately as focusing exclusively on Essity AB's fundamentals will not take into account other important factors: Essity AB Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Essity AB's current stock value. Our valuation model uses many indicators to compare Essity AB value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Essity AB competition to find correlations between indicators driving Essity AB's intrinsic value. More Info.Essity AB is one of the top stocks in price to earning category among related companies. It is one of the top stocks 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 Essity AB is roughly 9.44 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Essity AB by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Essity AB'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 Essity AB'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 Essity AB'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 Essity AB and how it compares across the competition.
About Essity AB Valuation
The stock valuation mechanism determines the current worth of Essity AB on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Essity AB. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Essity AB based exclusively on its fundamental and basic technical indicators. By analyzing Essity AB'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 Essity AB'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 Essity AB. We calculate exposure to Essity AB's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Essity AB's related companies.Essity AB develops, produces, and sells personal care, consumer tissue, and professional hygiene products and solutions worldwide. Essity AB was founded in 1849 and is headquartered in Stockholm, Sweden. Essity AB operates under Household Personal Products classification in Sweden and is traded on Stockholm Stock Exchange. It employs 47000 people.
8 Steps to conduct Essity AB's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Essity AB'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 Essity AB's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Essity AB's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Essity AB's revenue streams: Identify Essity AB's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Essity AB's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Essity AB's growth potential: Evaluate Essity AB's management, business model, and growth potential.
- Determine Essity AB'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 Essity AB's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Essity AB. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Complementary Tools for Essity Stock analysis
When running Essity AB's price analysis, check to measure Essity AB'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 Essity AB is operating at the current time. Most of Essity AB's value examination focuses on studying past and present price action to predict the probability of Essity AB's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Essity AB's price. Additionally, you may evaluate how the addition of Essity AB to your portfolios can decrease your overall portfolio volatility.
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