Credo Technology Valuation
| CRDO Stock | USD 48.96 3.25 7.11% |
At this time, the firm appears to be overvalued. Credo Technology shows a prevailing Real Value of $41.93 per share. The current price of the firm is $48.96. Our model approximates the value of Credo Technology from analyzing the firm fundamentals such as profit margin of (0.12) %, and Return On Equity of -0.0582 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Credo Technology's valuation include:
Price Book 14.6998 | Enterprise Value 7.7 B | Enterprise Value Ebitda (790.40) | Price Sales 37.3663 | Forward PE 144.9275 |
Overvalued
Today
Please note that Credo Technology's price fluctuation is not too volatile at this time. Calculation of the real value of Credo Technology is based on 3 months time horizon. Increasing Credo Technology's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Credo Technology is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Credo Stock. However, Credo Technology'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 48.96 | Real 41.93 | Target 19.49 | Hype 48.96 | Naive 49.89 |
The intrinsic value of Credo Technology'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 Credo Technology'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 Credo Technology Group helps investors to forecast how Credo 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 Credo Technology more accurately as focusing exclusively on Credo Technology'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 Credo Technology's intrinsic value based on its ongoing forecasts of Credo Technology's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Credo Technology's closest peers.
Credo Technology Cash |
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Credo Valuation Trend
Knowing Credo Technology's actual value is paramount for traders when making sound investment determinations. Using both Credo Technology'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.
Credo Revenue by Product
Credo Technology Total Value Analysis
Credo Technology Group is currently forecasted to have valuation of 7.75 B with market capitalization of 8.13 B, debt of 11.13 M, and cash on hands of 243.78 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 Credo Technology fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
7.75 B | 8.13 B | 11.13 M | 243.78 M |
Credo Technology Investor Information
About 16.0% of the company shares are held by company insiders. The company has Price/Earnings To Growth (PEG) ratio of 0.9. Credo Technology recorded a loss per share of 0.16. The entity had not issued any dividends in recent years. Based on the key measurements obtained from Credo Technology's financial statements, Credo Technology Group is not in a good financial situation at this time. It has a very high probability of going through financial hardship in December.Credo Technology Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Credo Technology has an asset utilization ratio of 32.06 percent. This suggests that the Company is making $0.32 for each dollar of assets. An increasing asset utilization means that Credo Technology Group is more efficient with each dollar of assets it utilizes for everyday operations.Credo Technology Ownership Allocation
Credo Technology holds a total of 166.06 Million outstanding shares. The majority of Credo Technology Group outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Credo Technology to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Credo Technology. Please pay attention to any change in the institutional holdings of Credo Technology Group 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.Credo Technology Profitability Analysis
The company reported the previous year's revenue of 192.97 M. Net Loss for the year was (28.37 M) with profit before overhead, payroll, taxes, and interest of 65.77 M.About Credo Technology Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Credo Technology Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Credo Technology based exclusively on its fundamental and basic technical indicators. By analyzing Credo Technology's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Credo Technology's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Credo Technology. We calculate exposure to Credo Technology's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Credo Technology's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 119.4 M | 82.3 M | |
| Pretax Profit Margin | (0.12) | (0.21) | |
| Operating Profit Margin | (0.19) | (0.18) | |
| Net Loss | (0.15) | (0.21) | |
| Gross Profit Margin | 0.62 | 0.60 |
Credo Technology 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 | 155.1 M | |
| Quarterly Earnings Growth Y O Y | -0.867 | |
| Forward Price Earnings | 144.9275 |
Credo Technology Current Valuation Indicators
Credo Technology'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 Credo Technology'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 Credo Technology, 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 Credo Technology'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 Credo Technology's worth.When determining whether Credo Technology offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Credo Technology'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 Credo Technology Group Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Credo Technology Group Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Credo Technology Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Is Semiconductors & Semiconductor 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 Credo Technology. If investors know Credo 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 Credo Technology 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 (0.87) | Earnings Share (0.16) | Revenue Per Share 1.368 | Quarterly Revenue Growth 0.702 | Return On Assets (0.04) |
The market value of Credo Technology is measured differently than its book value, which is the value of Credo that is recorded on the company's balance sheet. Investors also form their own opinion of Credo Technology's value that differs from its market value or its book value, called intrinsic value, which is Credo Technology'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 Credo Technology's market value can be influenced by many factors that don't directly affect Credo Technology'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 Credo Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Credo Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Credo Technology'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.