Ferguson Plc Valuation
FERG Stock | USD 217.17 3.88 1.82% |
At this time, the firm appears to be overvalued. Ferguson Plc shows a prevailing Real Value of $204.02 per share. The current price of the firm is $217.17. Our model computes the value of Ferguson Plc from reviewing the firm fundamentals such as Shares Outstanding of 202.18 M, current valuation of 47.91 B, and Profit Margin of 0.06 % as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise locking in undervalued instruments and disposing overvalued instruments since, at some point, asset prices and their ongoing real values will submerge. Key fundamental drivers impacting Ferguson Plc's valuation include:
Price Book 8.0838 | Enterprise Value 47.9 B | Enterprise Value Ebitda 17.2535 | Price Sales 1.4918 | Forward PE 20.79 |
Overvalued
Today
Please note that Ferguson Plc's price fluctuation is very steady at this time. Calculation of the real value of Ferguson Plc is based on 3 months time horizon. Increasing Ferguson Plc's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Ferguson Plc is useful when determining the fair value of the Ferguson stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Ferguson Plc. Since Ferguson Plc is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Ferguson Stock. However, Ferguson Plc'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 217.17 | Real 204.02 | Target 168.33 | Hype 217.11 | Naive 223.7 |
The real value of Ferguson Stock, also known as its intrinsic value, is the underlying worth of Ferguson Plc Company, which is reflected in its stock price. It is based on Ferguson Plc's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Ferguson Plc'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 Ferguson Plc'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 Ferguson Plc helps investors to forecast how Ferguson 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 Ferguson Plc more accurately as focusing exclusively on Ferguson Plc'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 Ferguson Plc's intrinsic value based on its ongoing forecasts of Ferguson Plc's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Ferguson Plc's closest peers. When choosing an evaluation method for Ferguson Plc, 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.
Ferguson Plc Investments |
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Ferguson Valuation Drivers Correlation
Many accounts on the financial statements of Ferguson Plc are highly interrelated and sometimes correlated. Consequently, when conducting Ferguson's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Ferguson
Click cells to compare fundamentals
Ferguson Valuation Trend
Knowing Ferguson Plc's actual value is paramount for traders to make sound investment determinations. Ferguson Plc's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Ferguson Plc's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Ferguson Plc'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.
Ferguson Market Cap
Ferguson Plc is one of the top stocks in market capitalization category among related companies. Market capitalization of Industrials industry is currently estimated at about 72.28 Billion. Ferguson Plc totals roughly 43.12 Billion in market capitalization claiming about 60% of equities under Industrials industry.Ferguson Plc Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Ferguson Plc's current stock value. Our valuation model uses many indicators to compare Ferguson Plc value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Ferguson Plc competition to find correlations between indicators driving Ferguson Plc's intrinsic value. More Info.Ferguson Plc is rated below average in price to earning category among related companies. It is rated # 3 in price to book category among related companies fabricating about 0.52 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Ferguson Plc is roughly 1.92 . The current Price To Book Ratio is estimated to decrease to 7.24. Comparative valuation analysis is a catch-all model that can be used if you cannot value Ferguson Plc by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Ferguson Plc'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 Ferguson Plc'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 Ferguson Plc'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 Ferguson Plc and how it compares across the competition.
About Ferguson Plc Valuation
The stock valuation mechanism determines the current worth of Ferguson Plc on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Ferguson Plc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Ferguson Plc based exclusively on its fundamental and basic technical indicators. By analyzing Ferguson Plc'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 Ferguson Plc'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 Ferguson Plc. We calculate exposure to Ferguson Plc's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Ferguson Plc's related companies.Last Reported | Projected for Next Year | ||
Gross Profit | 10.4 B | 7 B | |
Pretax Profit Margin | 0.1 | 0.06 | |
Operating Profit Margin | 0.10 | 0.06 | |
Net Profit Margin | 0.06 | 0.06 | |
Gross Profit Margin | 0.27 | 0.22 |
Ferguson Plc Quarterly Retained Earnings |
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8 Steps to conduct Ferguson Plc's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Ferguson Plc'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 Ferguson Plc's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Ferguson Plc's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Ferguson Plc's revenue streams: Identify Ferguson Plc's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Ferguson Plc's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Ferguson Plc's growth potential: Evaluate Ferguson Plc's management, business model, and growth potential.
- Determine Ferguson Plc'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 Ferguson Plc'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 Ferguson Plc represents a small ownership stake in the entity. As a stockholder of Ferguson, 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.
Ferguson Plc Dividends Analysis For Valuation
At this time, Ferguson Plc's Dividend Payout Ratio is most likely to slightly decrease in the upcoming years. The Ferguson Plc's current Dividend Paid And Capex Coverage Ratio is estimated to increase to 9.53, while Dividends Paid is projected to decrease to roughly 511.6 M. . At this time, Ferguson Plc's Retained Earnings are most likely to increase significantly in the upcoming years. The Ferguson Plc's current Earnings Yield is estimated to increase to 0.05, while Retained Earnings Total Equity is projected to decrease to roughly 6.1 B.
Last Reported | Projected for Next Year | ||
Dividends Paid | 817.6 M | 511.6 M | |
Dividend Yield | 0.02 | 0.02 | |
Dividend Payout Ratio | 0.43 | 0.81 | |
Dividend Paid And Capex Coverage Ratio | 9.08 | 9.53 |
There are various types of dividends Ferguson Plc 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 Ferguson 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 Ferguson Plc directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Ferguson pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Ferguson Plc by the value of the dividends paid out.
Ferguson Plc 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 Ferguson Plc 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 | 207.2 M | |
Quarterly Earnings Growth Y O Y | -0.122 | |
Forward Price Earnings | 20.79 |
Ferguson Plc Current Valuation Indicators
Valuation refers to the process of determining the present value of Ferguson Plc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Ferguson we look at many different elements of the entity such as Ferguson's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Ferguson Plc'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 Ferguson Plc'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.
Book Value Per Share | ||
Tangible Book Value Per Share | ||
Enterprise Value Over E B I T D A | ||
Net Current Asset Value |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Ferguson Plc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area. For more detail on how to invest in Ferguson Stock please use our How to Invest in Ferguson Plc guide.You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Complementary Tools for Ferguson Stock analysis
When running Ferguson Plc's price analysis, check to measure Ferguson Plc'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 Ferguson Plc is operating at the current time. Most of Ferguson Plc's value examination focuses on studying past and present price action to predict the probability of Ferguson Plc's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ferguson Plc's price. Additionally, you may evaluate how the addition of Ferguson Plc to your portfolios can decrease your overall portfolio volatility.
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Is Ferguson Plc'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 Ferguson Plc. If investors know Ferguson 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 Ferguson Plc 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 (0.12) | Dividend Share 3.08 | Earnings Share 8.6 | Revenue Per Share 143.741 | Quarterly Revenue Growth (0.02) |
The market value of Ferguson Plc is measured differently than its book value, which is the value of Ferguson that is recorded on the company's balance sheet. Investors also form their own opinion of Ferguson Plc's value that differs from its market value or its book value, called intrinsic value, which is Ferguson Plc'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 Ferguson Plc's market value can be influenced by many factors that don't directly affect Ferguson Plc'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 Ferguson Plc's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ferguson Plc is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ferguson Plc'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.