ADTRAN Valuation
| ADTN Stock | USD 9.03 0.15 1.63% |
At this time, the firm appears to be undervalued. ADTRAN Inc shows a prevailing Real Value of $10.03 per share. The current price of the firm is $9.03. Our model approximates the value of ADTRAN Inc from reviewing the firm fundamentals such as profit margin of (0.49) %, and Return On Equity of -0.55 as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting ADTRAN's valuation include:
Price Book 5.4126 | Enterprise Value | Enterprise Value Ebitda (5.03) | Price Sales 0.7945 | Forward PE 41.4938 |
Undervalued
Today
Please note that ADTRAN's price fluctuation is somewhat reliable at this time. Calculation of the real value of ADTRAN Inc is based on 3 months time horizon. Increasing ADTRAN's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since ADTRAN is currently traded on the exchange, buyers and sellers on that exchange determine the market value of ADTRAN Stock. However, ADTRAN'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 9.03 | Real 10.03 | Target 10.67 | Hype 8.62 | Naive 8.64 |
The intrinsic value of ADTRAN'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 ADTRAN'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 ADTRAN Inc helps investors to forecast how ADTRAN 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 ADTRAN more accurately as focusing exclusively on ADTRAN'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 ADTRAN's intrinsic value based on its ongoing forecasts of ADTRAN's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against ADTRAN's closest peers.
ADTRAN Cash |
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ADTRAN Valuation Trend
Knowing ADTRAN's actual value is paramount for traders when making sound investment determinations. Using both ADTRAN'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.
ADTRAN Total Value Analysis
ADTRAN Inc is presently anticipated to have valuation of 865.46 M with market capitalization of 733.11 M, debt of 215.5 M, and cash on hands of 111.9 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 ADTRAN fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
865.46 M | 733.11 M | 215.5 M | 111.9 M |
ADTRAN Investor Information
About 88.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings (P/E) ratio of 405.0. ADTRAN Inc recorded a loss per share of 5.67. The entity last dividend was issued on the 18th of August 2023. The firm had 2:1 split on the 16th of December 2003. Based on the analysis of ADTRAN's profitability, liquidity, and operating efficiency, ADTRAN Inc is not in a good financial situation at this time. It has a very high probability of going through financial hardship in April.ADTRAN Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. ADTRAN has an asset utilization ratio of 78.24 percent. This suggests that the Company is making $0.78 for each dollar of assets. An increasing asset utilization means that ADTRAN Inc is more efficient with each dollar of assets it utilizes for everyday operations.ADTRAN Ownership Allocation
ADTRAN holds a total of 79.86 Million outstanding shares. The majority of ADTRAN Inc outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in ADTRAN Inc to benefit from reduced commissions. Thus, institutional investors are subject to a different set of regulations than regular investors in ADTRAN. Please pay attention to any change in the institutional holdings of ADTRAN Inc as this could imply that something significant has changed or is about to change at the company. 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.ADTRAN Profitability Analysis
The company reported the previous year's revenue of 922.72 M. Net Loss for the year was (441.05 M) with profit before overhead, payroll, taxes, and interest of 336.3 M.ADTRAN Past Distributions to stockholders
About ADTRAN Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of ADTRAN Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of ADTRAN Inc based exclusively on its fundamental and basic technical indicators. By analyzing ADTRAN's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of ADTRAN's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of ADTRAN. We calculate exposure to ADTRAN's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of ADTRAN's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 330.3 M | 265.5 M | |
| Pretax Profit Margin | (0.47) | (0.45) | |
| Operating Profit Margin | (0.13) | (0.13) | |
| Net Loss | (0.49) | (0.46) | |
| Gross Profit Margin | 0.36 | 0.54 |
A single share of ADTRAN represents a small ownership stake in the entity. As a stockholder of ADTRAN, 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.
ADTRAN Dividends Analysis For Valuation
Please note that ADTRAN has scaled down on payment of dividends at this time. As of the 19th of March 2025, Retained Earnings is likely to grow to about (646.9 M). In addition to that, Retained Earnings Total Equity is likely to drop to about 47.3 M
There are various types of dividends ADTRAN 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 ADTRAN 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 ADTRAN Inc directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When ADTRAN pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of ADTRAN by the value of the dividends paid out.
ADTRAN 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.
| Common Stock Shares Outstanding | 78.9 M | |
| Quarterly Earnings Growth Y O Y | -0.6 | |
| Forward Price Earnings | 41.4938 |
ADTRAN Current Valuation Indicators
ADTRAN'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 ADTRAN'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 ADTRAN, 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 ADTRAN'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 ADTRAN's worth.When determining whether ADTRAN Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of ADTRAN's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Adtran Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Adtran Inc Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in ADTRAN Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Is Communications Equipment 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 ADTRAN. If investors know ADTRAN 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 ADTRAN 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 (0.60) | Earnings Share (5.67) | Revenue Per Share | Quarterly Revenue Growth 0.077 | Return On Assets |
The market value of ADTRAN Inc is measured differently than its book value, which is the value of ADTRAN that is recorded on the company's balance sheet. Investors also form their own opinion of ADTRAN's value that differs from its market value or its book value, called intrinsic value, which is ADTRAN'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 ADTRAN's market value can be influenced by many factors that don't directly affect ADTRAN'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 ADTRAN's value and its price as these two are different measures arrived at by different means. Investors typically determine if ADTRAN is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ADTRAN'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.