Giga Media Valuation

GIGM Stock  USD 1.46  0.03  2.01%   
Based on Macroaxis valuation methodology, the firm appears to be fairly valued. Giga Media retains a regular Real Value of $1.44 per share. The prevalent price of the firm is $1.46. Our model calculates the value of Giga Media from evaluating the firm fundamentals such as Return On Asset of -0.0501, current valuation of (21.84 M), and Return On Equity of -0.0865 as well as inspecting its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Giga Media's valuation include:
Price Book
0.3863
Enterprise Value
-21.8 M
Enterprise Value Ebitda
7.124
Price Sales
5.2305
Fairly Valued
Today
1.46
Please note that Giga Media's price fluctuation is unstable at this time. Calculation of the real value of Giga Media is based on 3 months time horizon. Increasing Giga Media's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Giga stock is determined by what a typical buyer is willing to pay for full or partial control of Giga Media. Since Giga Media is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Giga Stock. However, Giga Media'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  1.46 Real  1.44 Hype  1.46 Naive  1.39
The intrinsic value of Giga Media'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 Giga Media'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.
1.44
Real Value
3.14
Upside
Estimating the potential upside or downside of Giga Media helps investors to forecast how Giga 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 Giga Media more accurately as focusing exclusively on Giga Media's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
1.441.471.50
Details
Hype
Prediction
LowEstimatedHigh
0.071.463.16
Details
Naive
Forecast
LowNext ValueHigh
0.031.393.09
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Giga Media's intrinsic value based on its ongoing forecasts of Giga Media's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Giga Media's closest peers.

Giga Media Cash

55.6 Million

Giga Valuation Trend

Knowing Giga Media's actual value is paramount for traders when making sound investment determinations. Using both Giga Media's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.

Giga Media Total Value Analysis

Giga Media is currently forecasted to have valuation of (21.84 M) with market capitalization of 16.14 M, debt of 495 K, and cash on hands of 39.32 M. The negative valuation of Giga Media may imply that the market is not capable to price the future growth of the company or it is pricing it at zero value. It may also suggest that takeover valuation may not have captured all of the outstanding financial obligations of the company both on and off balance sheet. Investors should vigilantly validate all of the Giga Media fundamentals.
  Takeover PriceMarket CapDebt ObligationsCash
(21.84 M)
16.14 M
495 K
39.32 M

Giga Media Investor Information

About 46.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 0.39. Some equities with similar Price to Book (P/B) outperform the market in the long run. Giga Media recorded a loss per share of 0.36. The entity last dividend was issued on the 1st of April 2002. The firm had 1:5 split on the 16th of December 2015. Based on the key measurements obtained from Giga Media's financial statements, Giga Media may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.

Giga Media Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Giga Media has an asset utilization ratio of 9.23 percent. This suggests that the Company is making $0.0923 for each dollar of assets. An increasing asset utilization means that Giga Media is more efficient with each dollar of assets it utilizes for everyday operations.
 
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Giga Media Ownership Allocation

The market capitalization of Giga Media is $16.14 Million. Giga Media secures significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Note, that even with negative profits, if the true value of the firm is larger than the current market value, you may still be able to generate positive returns on investment in this company.

Giga Media Profitability Analysis

The company reported the previous year's revenue of 4.29 M. Net Loss for the year was (3.4 M) with profit before overhead, payroll, taxes, and interest of 3.25 M.

About Giga Media Valuation

We use absolute and relative valuation methodologies to arrive at the intrinsic value of Giga Media. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Giga Media based exclusively on its fundamental and basic technical indicators. By analyzing Giga Media's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Giga Media's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Giga Media. We calculate exposure to Giga Media's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Giga Media's related companies.
Last ReportedProjected for Next Year
Gross Profit2.4 M2.3 M
Pretax Profit Margin(0.79)(0.83)
Operating Profit Margin(0.74)(0.77)
Net Loss(0.79)(0.83)
Gross Profit Margin 0.57  0.60 

Giga Media Growth Indicators

Investing in growth stocks can be very risky. If the company such as Giga Media 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 Outstanding11.1 M

Giga Media Current Valuation Indicators

Giga Media's valuation analysis is 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 Giga Media'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 Giga Media, 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 Giga Media'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 Giga Media's worth.
When determining whether Giga Media is a strong investment it is important to analyze Giga Media'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 Giga Media's future performance. For an informed investment choice regarding Giga Stock, refer to the following important reports:
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Giga Media. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price.
To learn how to invest in Giga Stock, please use our How to Invest in Giga Media guide.
You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Is Interactive Home Entertainment space 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 Giga Media. If investors know Giga 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 Giga Media listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.36)
Revenue Per Share
0.279
Quarterly Revenue Growth
(0.28)
Return On Assets
(0.05)
Return On Equity
(0.09)
The market value of Giga Media is measured differently than its book value, which is the value of Giga that is recorded on the company's balance sheet. Investors also form their own opinion of Giga Media's value that differs from its market value or its book value, called intrinsic value, which is Giga Media'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 Giga Media's market value can be influenced by many factors that don't directly affect Giga Media'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 Giga Media's value and its price as these two are different measures arrived at by different means. Investors typically determine if Giga Media is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Giga Media'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.