Today we’re going to be going over one way to estimate the intrinsic value of Highway Holdings Limited (NASDAQ: HIHO) by forecasting future cash flows and then discounting them to today’s value. This is done according to the DCF model (Discounted Cash Flow). Believe it or not, it’s not too difficult to follow as you will see from our example!
Remember, however, that there are many ways to appreciate a company’s value, and a DCF is only one way. For those who are familiar with stock analysis, the Simply Wall St analytical model might be of interest here.
We have to calculate the value of Highway Holdings a little differently than other stocks because it is a machinery company. This approach uses dividends per share (DPS) because free cash flow is difficult to estimate and is often not reported by analysts. This often underestimates the value of a stock, but it can still be good compared to competitors. The « Gordon growth model » is used, which only assumes that dividend payments will continue to rise forever at a sustained growth rate. A very conservative growth rate is used for a number of reasons, and it cannot exceed that of a company’s gross domestic product (GDP). . In this case, we used the 5-year average 10-year government bond yield (2nd. 0%). The expected dividend per share is then discounted to today’s value at a cost of equity of 9. 8th%. Based on the current share price of $ 4. 3, the company appears above the fair value with a discount of 17% compared to the current trading price. However, remember that this is only an approximate rating, and like any complex formula – garbage in, garbage out.
We would like to point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of the investment is making your own assessment of a company’s future performance. So try the calculation yourself and check your own assumptions. The DCF also does not take into account the possible cyclical nature of an industry or the future capital requirements of a company, so it does not give a complete picture of a company’s potential performance. Given that we view Highway Holdings as a potential shareholder, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) that makes up debt. In this calculation we used 9. 8% based on a leverage beta of 1. 263. Beta is a measure of the volatility of a stock compared to the overall market. We get our beta from the industry-standard average beta of comparable companies worldwide with an imposed limit between 0. 8 and 2. 0, which is a reasonable range for a stable business.
While important, the DCF calculation is just one of many factors that you need to evaluate for a business. The DCF model is not a perfect tool for stock valuation. Rather, it should be seen as a guide to « what assumptions must be made for this stock to be undervalued or overvalued? » For example, changes in the company’s cost of equity or the risk-free rate can significantly affect the valuation. There are three relevant aspects of Highway Holdings to consider:
Risks: To do this, be sure to read up on the 5 warning signs we spotted at Highway Holdings (including one which is a little uncomfortable). .
Other high quality alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else you might be missing!
Other Top Analyst Tips: Want to see what the analysts think? Take a look at our interactive list of analysts’ top stock picks to find out what they think has an attractive future outlook!
PS. Simply Wall St updates its DCF calculation for every American share daily. So if you want to find out the intrinsic value of another stock, just search here.
This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell shares and does not take into account your goals or your financial situation. We want to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned. Do you have any feedback on this article? Concerned about the content? Contact us. Alternatively, you can also send an email to the editorial team (at) simplywallst. com.
The Dow Jones, S&P 500 and Nasdaq Composite saw modest losses in afternoon trading, but small caps fell sharply, with the Russell falling more than 2% in 2000.
Moderna stock has fallen sharply, falling 40% from this month’s high to its recent low. The charts show an opportunity for investors.
When you lose $ 609 billion when everyone else is 14 years old. 5% – this is a bad year. That’s exactly what happened to some giant S&P 500 stocks in 2020.
The best dividend stocks give income and age portfolios a big boost. These stocks offer solid returns as well as strong performance.
Wall Street has mixed feelings about penny stocks. These tickers, which change hands for less than $ 5 per share, either attract investors with their high return potential or make them run into the mountains, but why? When we talk about high potential returns, we are not exaggerating. The cheap price points allow investors to buy more stocks than possible when investing in other better-known names. In addition, even a trivial appreciation of the stock price can lead to massive percentage gains. However, there is a legitimate reason some investors are wary of penny stocks. The risk associated with these games puts the faint of heart off, as very real issues such as weak fundamentals or overwhelming headwinds could be masked by the low stock prices. How should investors approach a potential penny stock investment? By aligning with the analyst community. These experts bring in-depth knowledge of the industries they cover and extensive experience. With that in mind, according to Wall Street analysts, we used the TipRanks database to find two compelling penny stocks. Both tickers have a strong buy consensus rating and a lot of upside potential. Matinas BioPharma (MTNB) Matinas BioPharma hopes to use its LNC (Lipid Nano-Crystal Platform) delivery technology to solve complex challenges related to oral small molecule delivery, gene therapies, vaccines, proteins and peptides. Currently for $ 0. 87 apiece, several members of the street believe their stock price is an attractive entry point. The 5-star analyst Robert Hazlett, who writes for BTIG, points to MAT2203 as a key component of his bullish thesis. The therapy was developed as a liposomal nanocrystal (LNC) version of the broad spectrum antifungal drug Amphotericin B, which enables the drug to be administered orally. Ahead of the Phase 2 EnACT trial to evaluate the candidate for cryptococcal meningitis, where registration for Cohort 2 is expected to begin shortly and the next DSMB dates are expected in mid-2021, Hazlett points out that this will be the “first of possibly several “are indications with the novel antifungal agent. Continuing his optimism about the therapy, Hazlett stated, “The independent DSMB unanimously recommended moving to the second cohort of patients in EnACT, which is a validation event for MAT2203 as progression through the cohorts depends on the rate of CSF -Fungal clearance and the lack of rebound in fungal count as well as progression through the cohorts of EnACT therefore signal the activity of MAT2203 and the successful crossing of the blood-brain barrier (BBB) to maintain a decreased fungal count in the CSF. In addition, registration has been completed for ENHANCE-IT, a head-to-head trial of MAT9001 versus Amarin’s Vascepa. MAT9001 is MTNB’s free fatty acid formulation of EPA and DPA and, according to Hazlett, produces significantly higher EPA blood levels than Vascepa. If that’s not enough, the company recently announced a collaboration with NIAID to investigate a liposomal nanocrystal (LNC) formulation of Gilead’s remdesivir for an oral formulation of COVID-19 therapy. « We believe this collaboration further validates Matinas’ LNC technology, » commented Hazlett. In keeping with his bullish stance, Hazlett is looking to buy MTNB and his target price of $ 5 implies room for an impressive upside of 474% over the next 12 months. (To see Hazlett’s track record, click here. If we turn to the rest of the road, other analysts agree with Hazlett’s opinion. Since only buy recommendations were published in the last three months, MTNB achieved a strong buy analyst consensus. With an average price target of $ 4, stocks could be 359% above current levels. (See MTNB stock analysis on TipRanks) Equillium (EQ) Equillium has a thorough understanding of immunology and its role in disease and develops innovative therapies for severe autoimmune and inflammatory disorders. With stocks that trade for $ 4. 25, some analysts think now is the time to pull the trigger. After the company’s analyst day, on which the clinical programs for the anti-CD6 monoclonal antibody itolizumab were presented, Leerink analyst Thomas Smith remains optimistic about its long-term growth prospects. During the event, EQ published individual patient responses as well as biomarker analyzes that followed the most recent positive interim data from the first three cohorts of the Phase 1b EQUATE study investigating itolizumab in acute graft versus host disease (aGVHD). . Going forward, the company plans to expand the dose in cohorts 2 and 3 by adding three more patients to each cohort. The main results of the study are expected in 1H21. Looking at the first data from the Phase 1b EQUATE study, Smith felt that there was a rapid, deep, and lasting response to itolizumab in aGVHD. In the updated data, the overall response rate (ORR) was across all doses up to 57. Day in 80%, with 8 out of 10 patients achieving a total of complete remission (CR). . In addition, therapy was also tied to the ability to reduce and decrease systemic steroid use in patients. “These results are consistent with biomarker data showing that itolizumab rapidly decreased CD6 expression on CD4 and CD8 T cells. We believe these results are compelling and support EQ’s plans to extend the dosage to additional GVHD patients at 0. 8 mg / kg and 1. 6 mg / kg dose, ”explained Smith. If that wasn’t enough, EQ presented preclinical and translational research to support the Phase 1b EQUALIZE trial of itolizumab in systemic lupus erythematosus (SLE) and lupus nephritis (LN), and Smith expects first results in SLE in the first quarter 21 and interim results will be available in LN in 2H21. To do this, Smith rates EQ a Buy along with a price target of $ 18. Should this goal be achieved in the coming year, investors could pocket a profit of ~ 328%. (To see Smith’s track record, click here. ) What does the rest of the street have to say? 3 buys and no holds or sells results in a strong buy consensus rating. Given the average price target of $ 15, stocks could rise 328% over the coming year. (See EQ stock analysis on TipRanks. ) To find great ideas for trading penny stocks at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that brings together all of the insights into TipRanks stocks. Disclaimer: The opinions expressed in this article are solely those of the presented analysts. The content is intended to be used for informational purposes only. It is very important that you do your own analysis before making any investment.
DEEP DIVE During the stock market slump in March, you may have had a hard time expecting 2020 to be a good year for stocks, but incredibly low Federal Reserve interest rates, unprecedented federal spending in support of the economy, and investor excitement for Tech stocks did just that.
Congress passed the relief bill on Monday, waiting for President Donald Trump, among other things, to voice his concerns about the relatively modest indication of the incentive. On Sunday he signed the law on massive pandemic aid to prevent government shutdown in the EU. At the same time, there are some new rules for certain scenarios for the new stimulus tests, e.g.. B.. for people who are in arrears with child benefit or who are married to a non-national. Treasury Secretary Steven Mnuchin said Monday these economic impact payments could hit bank accounts next week.
The Dow Jones futures were little changed late Tuesday after the stock market rally hit an economic blockade. Apple stock has reached a new buy point.
(Bloomberg) – Sheila Patel, Chair of Goldman Sachs Group Inc. . The asset management unit leaves the USD 1. 8 trillion division after almost two decades in the company. Patel, 51, is one of the company’s oldest women and has led some of Goldman’s best-known relationships with investors around the world. She will leave the partnership and become an advisory director in the new year, CEO David Solomon said in a memo to employees on Monday. « Sheila has contributed to our culture, including serving as a mentor to many Goldman Sachs experts around the world, » Solomon said in the memo. “I look forward to benefiting from your continued advice. Patel rose to Goldman’s highest rank in 2006 when she was made a partner within three years of joining the company. As part of the Bank’s Management Committee in Europe, she oversaw the rapidly growing areas of Environment, Social & Governance and Impact Investing. Before joining the asset management department, she held various positions in the equity sector, including co-sales manager in Asia and head of U. . S.. . Selling derivatives. The number of Goldman partnerships has dwindled and a number of long-standing executives have left the company in recent years. This year the company added the lowest number of partners since 1998, which can limit costs as the elite ranking tends to bring significant benefits. The asset management unit has also seen enormous changes. Tim O’Neill, a key head of the division since 2008 and a partner since 1990 who turned the business into a juggernaut, has been promoted to a senior advisory role over the past few months, with Eric Lane and Julian Salisbury being co-lead assets were management as it strengthened the merchant banking functions. The bank aims to strengthen its presence in private fundraising. Meanwhile, company executives including Gary Chropuvka, co-head of quantitative investing, and Kane Brenan, who oversaw a company that worked with pension funds, have announced their departures since mid-2019. Patel was appointed to the company’s Management Committee in 2018 as part of Solomon’s first major change in personnel after his appointment as CEO, which increased the number of women on the company’s top governance body. (Updates with earlier departures from the sixth paragraph. ) For more articles like this, please visit us on Bloomberg. comSubscribe now to stay one step ahead with the most trusted business news source. © 2020 Bloomberg L. . P. .
2020 was a year of monster earnings for individual stocks, with companies like Tesla seeing triple-digit gains.
Alibaba Group and other Chinese stocks rose on Tuesday as the e-commerce leader indicated progress was being made in overhauling the operations of online financial giant Ant Group.
Apple stock hit a record high on Tuesday after an analyst predicted it will be the best-performing FAANG stock in 2021. For Apple, it would be the third year in a row in the group.
The long-ailing Ford is facing new coronavirus challenges with demand and supply chains. But is Ford prepared for a comeback? Here’s what you should know:.
In terms of returns, Novavax (NVAX) was hands down the most successful coronavirus stock of all. The profits for 2020 reached an amazing 2920%. However, the vaccine specialist’s COVID-19 vaccine candidate NVX-CoV2373 was at risk of being cut off from the competition en route to the final phase of the year. Both Moderna mRNA-1273 (MRNA) and Pfizer (PFE) / BioNTech (BNTX) BNT162b2 BNT162b2 have already received emergency approval and are already being distributed across the United States. S.. . and the world. But now Novavax can finally work to fill the void. Finally, on Monday, the company announced the U. S.. . and Mexico phase 3 trial stand out. The PREVENT-19 study to evaluate NVX-CoV2373 was started at 115 locations. 30th. 000 participants are expected to take part in the program. With more than 25% of participants over 65 and black / African American patients making up an additional 15%, the study was specifically designed to assess the vaccine candidate’s impact on a diverse population. Novavax already has a fully enrolled Phase 3 clinical trial in the U in processing. K. . expected shortly with a preliminary data readout. The company may lag behind the competition, but its offering has unique properties that set it apart from the vaccines already available. Unlike Moderna’s vaccine, which must be kept in a freezer, and Pfizer / BioNTech’s offering, which requires even more extreme ultra-cold temperatures, NVX-CoV2373 can be kept in the refrigerator. B.. . Riley analyst Mayank Mamtani says an initial interim reading of the data from the U. . S.. . Study is likely in early 2. Quarter 21. The analyst believes Novavax’s offering could continue to play a major role in the spread of Covid-19 vaccines around the world, and urges investors to buy the recent decline. « We remain positive on our bull-case scenario in which NVAX’s best immunogenicity in the industry results in 90% VE and a differentiated target product profile in terms of reactogenicity to position 2373 as the preferred global vaccine solution, » said the 5 Star analyst. “We believe the stock weakness on the NVAX 12/28 (-10%) is mainly due to AZ’s positive comments on AZD1222, which U reviewed. K. . Regulators this week offers a compelling buying opportunity. Accordingly, Mamtani’s rating remains a Buy, while the price target of USD 223 is also retained. Profits of 85% could be in the cards if the goal is achieved in the next 12 months. (To see Mamtani’s track record, click here. ) Except for 1 sale, all 5 other recent analyst reviews rate Novavax a Buy. The consensus rating for moderate buy from NVAX is supported at $ 183. 20 average target price, which means a potential plus of 52% in the coming year. (See NVAX stock analysis on TipRanks. ) To find great ideas for trading coronavirus stocks at attractive valuations, visit TipRanks ‘Best Stocks to Buy, a newly launched tool that brings together all of the insights into TipRanks’ stocks. Disclaimer: The opinions expressed in this article are solely those of the presented analyst. The content is intended to be used for informational purposes only. It is very important that you do your own analysis before making any investment.
The Dow Jones fell from a record high as Senate majority leader Mitch McConnell came under pressure to put in place major stimulus controls. Apple stock has passed a buy point.
(INTC) shares received a bid on Tuesday after it was revealed that Third Point’s activist investor Daniel Loeb had acquired a significant stake in the chipmaker and urged it to explore strategic alternatives. Loeb, who recently urged (DIS) (DIS) to focus more on its streaming platform and permanently suspend its dividend, is calling on Intel (ticker: INTC) to hire an investment advisor to help the chipmaker decide whether it should remain integrated into device manufacturers and whether it should divest some of its recent acquisitions. The activist investor added that it was critical that Intel keep customers like Apple (AAPL), (MSFT) (MSFT) and (AMZN) (AMZN) rather than allowing them to ship their manufacturing overseas.
Intrinsic Value, Stock, Valuation
World News – AU – A Look at the Intrinsic Value of Highway Holdings Limited (NASDAQ: HIHO)
. . Related Title :
– A Look At The Intrinsic Value Of Highway Holdings Limited (NASDAQ: HIHO)
– Estimate of the Intrinsic Value of Euronet Worldwide, Inc. . (NASDAQ: EEFT)
– Are Advantage Oil & Gas Ltd. . (TSE: AAV) Investors who pay over the intrinsic value?
– Is Flux Power Holdings, Inc. . (NASDAQ: FLUX) Trade with a 27% discount?
– Is FLEETCOR Technologies, Inc. . (NYSE: FLT) Worth $ 273 based on intrinsic value?
– Is BRP Inc. . (TSE: DOO) worth CA $ 84. 7 Based on intrinsic value?
– Estimating the Fair Value of the Portland General Electric Company (NYSE: POR)
– Is there a chance with Infomedia Ltd& (ASX: IFM) 34% Undervaluation?
– Is there a chance at BWX Technologies, Inc. . & # 39; s (NYSE: BWXT) 25% Undervaluation?
– ENAV SpA (BIT: ENAV) shares could be 35% below theirs inner appreciation
Donnez votre avis et abonnez-vous pour plus d’infos
Vidéo du jour: