Adaro Energy Valuation
| ADRO Stock | IDR 1,785 15.00 0.83% |
At this time, the firm appears to be overvalued. Adaro Energy Tbk shows a prevailing Real Value of 1655.85 per share. The current price of the firm is 1785.0. Our model approximates the value of Adaro Energy Tbk from analyzing the firm fundamentals such as return on equity of 0.51, and Profit Margin of 0.33 % as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Adaro Energy's price fluctuation is very steady at this time. Calculation of the real value of Adaro Energy Tbk is based on 3 months time horizon. Increasing Adaro Energy's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Adaro Energy's intrinsic value may or may not be the same as its current market price of 1,785, 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 1785.0 | Real 1655.85 | Hype 1785.0 | Naive 1808.86 |
The intrinsic value of Adaro Energy's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Adaro Energy's stock price.
Estimating the potential upside or downside of Adaro Energy Tbk helps investors to forecast how Adaro 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 Adaro Energy more accurately as focusing exclusively on Adaro Energy's fundamentals will not take into account other important factors: Adaro Energy Total Value Analysis
Adaro Energy Tbk is presently forecasted to have takeover price of 92.3 T with market capitalization of 88.3 T, debt of 1.34 B, and cash on hands of 1.33 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Adaro Energy fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
92.3 T | 88.3 T | 1.34 B | 1.33 B |
Adaro Energy Investor Information
About 56.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 1.33. Some equities with similar Price to Book (P/B) outperform the market in the long run. Adaro Energy Tbk recorded earning per share (EPS) of 1174.83. The entity last dividend was issued on the 2nd of January 2023. Based on the key measurements obtained from Adaro Energy's financial statements, Adaro Energy Tbk is not in a good financial situation at the moment. It has a very high risk of going through financial straits in April.Adaro Energy Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Adaro Energy has an asset utilization ratio of 52.63 percent. This suggests that the Company is making 0.53 for each dollar of assets. An increasing asset utilization means that Adaro Energy Tbk is more efficient with each dollar of assets it utilizes for everyday operations.Adaro Energy Ownership Allocation
Adaro Energy holds a total of 31.2 Billion outstanding shares. Adaro Energy Tbk retains 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. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Adaro Energy Profitability Analysis
The company reported the revenue of 3.99 B. Net Income was 933.49 M with profit before overhead, payroll, taxes, and interest of 1.77 B.About Adaro Energy Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Adaro Energy Tbk. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Adaro Energy Tbk based exclusively on its fundamental and basic technical indicators. By analyzing Adaro Energy's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Adaro Energy's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Adaro Energy. We calculate exposure to Adaro Energy's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Adaro Energy's related companies.PT Adaro Energy Tbk, together with its subsidiaries, operates as an integrated coal mining and energy company in Indonesia. PT Adaro Energy Tbk was founded in 2004 and is headquartered in Jakarta, Indonesia. Adaro Energy operates under Thermal Coal classification in Indonesia and is traded on Jakarta Stock Exchange. It employs 9550 people.
8 Steps to conduct Adaro Energy's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Adaro Energy'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 Adaro Energy's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Adaro Energy's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Adaro Energy's revenue streams: Identify Adaro Energy's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Adaro Energy's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Adaro Energy's growth potential: Evaluate Adaro Energy's management, business model, and growth potential.
- Determine Adaro Energy'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 Adaro Energy's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Other Information on Investing in Adaro Stock
Adaro Energy financial ratios help investors to determine whether Adaro Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Adaro with respect to the benefits of owning Adaro Energy security.