At this time, the company appears to be fairly valued. Viavi Solutions has a current Real Value of $19.62 per share. The regular price of the company is $19.57. Our model measures the value of Viavi Solutions from inspecting the company fundamentals such as Operating Margin of 0.10 %, shares outstanding of 223.2 M, and Return On Equity of 0.0213 as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Viavi Solutions' valuation include:
Price Book
6.034
Enterprise Value
4.7 B
Enterprise Value Ebitda
37.867
Price Sales
3.8142
Forward PE
26.8817
Fairly Valued
Today 19.57
Please note that Viavi Solutions' price fluctuation is not too volatile at this time. Calculation of the real value of Viavi Solutions is based on 3 months time horizon. Increasing Viavi Solutions' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Viavi stock is determined by what a typical buyer is willing to pay for full or partial control of Viavi Solutions. Since Viavi Solutions is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Viavi Stock. However, Viavi Solutions' 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 19.57
Real 19.62
Target 18.43
Hype 19.2
Naive 21.66
The intrinsic value of Viavi Solutions' 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 Viavi Solutions' 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 Viavi Solutions helps investors to forecast how Viavi 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 Viavi Solutions more accurately as focusing exclusively on Viavi Solutions' 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 Viavi Solutions' intrinsic value based on its ongoing forecasts of Viavi Solutions' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Viavi Solutions' closest peers.
Viavi Solutions Cash
386.52 Million
Viavi Revenue by Product
Viavi Solutions Total Value Analysis
Viavi Solutions is at this time forecasted to have valuation of 4.67 B with market capitalization of 4.37 B, debt of 692.3 M, and cash on hands of 561.3 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Viavi Solutions fundamentals before making equity appraisal based on enterprise value of the company
About 98.0% of the company outstanding shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 2.41. Viavi Solutions had not issued any dividends in recent years. The entity had 1758:1000 split on the 4th of August 2015. Based on the key indicators related to Viavi Solutions' liquidity, profitability, solvency, and operating efficiency, Viavi Solutions may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Viavi Solutions has an asset utilization ratio of 54.38 percent. This indicates that the Company is making $0.54 for each dollar of assets. An increasing asset utilization means that Viavi Solutions is more efficient with each dollar of assets it utilizes for everyday operations.
Dot-com Bubble
Housing Crash
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Covid
Viavi Solutions Ownership Allocation
The majority of Viavi Solutions outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Viavi Solutions to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Viavi Solutions. Please pay attention to any change in the institutional holdings of Viavi Solutions as this could imply that something significant has changed or is about to change at the company.
Viavi Solutions Profitability Analysis
The company reported the previous year's revenue of 1.08 B. Net Income was 34.8 M with profit before overhead, payroll, taxes, and interest of 681.4 M.
About Viavi Solutions Valuation
Our relative valuation model uses a comparative analysis of Viavi Solutions. We calculate exposure to Viavi Solutions's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Viavi Solutions's related companies.
Investing in growth stocks can be very risky. If the company such as Viavi Solutions 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
225.7 M
Quarterly Earnings Growth Y O Y
-0.734
Forward Price Earnings
26.8817
Viavi Solutions Current Valuation Indicators
Viavi Solutions' 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 Viavi Solutions' 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 Viavi Solutions, 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 Viavi Solutions' 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 Viavi Solutions' worth.
Additional Tools for Viavi Stock Analysis
When running Viavi Solutions' price analysis, check to measure Viavi Solutions' 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 Viavi Solutions is operating at the current time. Most of Viavi Solutions' value examination focuses on studying past and present price action to predict the probability of Viavi Solutions' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Viavi Solutions' price. Additionally, you may evaluate how the addition of Viavi Solutions to your portfolios can decrease your overall portfolio volatility.