Direct Line Valuation
| D1LN Stock | EUR 3.37 0.01 0.30% |
At this time, the firm appears to be undervalued. Direct Line Insurance shows a prevailing Real Value of €3.88 per share. The current price of the firm is €3.37. Our model computes the value of Direct Line Insurance from reviewing the firm fundamentals such as Shares Outstanding of 1.31 B, current valuation of 2.71 B, and Profit Margin of 0.09 % as well as analyzing its technical indicators and probability of bankruptcy.
Undervalued
Today
Please note that Direct Line's price fluctuation is somewhat reliable at this time. Calculation of the real value of Direct Line Insurance is based on 3 months time horizon. Increasing Direct Line's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Direct stock is determined by what a typical buyer is willing to pay for full or partial control of Direct Line Insurance. Since Direct Line is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Direct Stock. However, Direct Line'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 3.37 | Real 3.88 | Hype 3.37 | Naive 3.38 |
The real value of Direct Stock, also known as its intrinsic value, is the underlying worth of Direct Line Insurance Company, which is reflected in its stock price. It is based on Direct Line's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Direct Line'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, or news.
Estimating the potential upside or downside of Direct Line Insurance helps investors to forecast how Direct 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 Direct Line more accurately as focusing exclusively on Direct Line's fundamentals will not take into account other important factors: Direct Line Total Value Analysis
Direct Line Insurance is currently expected to have takeover price of 2.71 B with market capitalization of 2.59 B, debt of 513.6 M, and cash on hands of 859.5 M. 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 Direct Line fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
2.71 B | 2.59 B | 513.6 M | 859.5 M |
Direct Line Investor Information
About 83.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.04. Some equities with similar Price to Book (P/B) outperform the market in the long run. Direct Line Insurance has Price/Earnings To Growth (PEG) ratio of 1.58. The entity last dividend was issued on the 11th of August 2022. The firm had 11:12 split on the 30th of June 2015. Based on the measurements of operating efficiency obtained from Direct Line's historical financial statements, Direct Line Insurance is not in a good financial situation at the moment. It has a very high risk of going through financial straits in April.Direct Line Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Direct Line has an asset utilization ratio of 34.85 percent. This implies that the Company is making €0.35 for each dollar of assets. An increasing asset utilization means that Direct Line Insurance is more efficient with each dollar of assets it utilizes for everyday operations.Direct Line Ownership Allocation
Direct Line holds a total of 1.31 Billion outstanding shares. The majority of Direct Line Insurance outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Direct Line Insurance to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Direct Line. Please pay attention to any change in the institutional holdings of Direct Line Insurance 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.Direct Line Profitability Analysis
The company reported the revenue of 3.24 B. Net Income was 343.7 M with profit before overhead, payroll, taxes, and interest of 1.25 B.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Direct Line'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 Direct Line and how it compares across the competition.
About Direct Line Valuation
The stock valuation mechanism determines Direct Line's current worth on a weekly basis. Our valuation model uses a comparative analysis of Direct Line. We calculate exposure to Direct Line's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Direct Line's related companies.Direct Line Insurance Group plc provides general insurance products and services in the United Kingdom. Direct Line Insurance Group plc was founded in 1985 and is headquartered in Bromley, the United Kingdom. DIR LINE operates under InsuranceDiversified classification in Germany and is traded on Frankfurt Stock Exchange. It employs 10807 people.
8 Steps to conduct Direct Line's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Direct Line'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 Direct Line's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Direct Line's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Direct Line's revenue streams: Identify Direct Line's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Direct Line's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Direct Line's growth potential: Evaluate Direct Line's management, business model, and growth potential.
- Determine Direct Line'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 Direct Line's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Complementary Tools for Direct Stock analysis
When running Direct Line's price analysis, check to measure Direct Line'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 Direct Line is operating at the current time. Most of Direct Line's value examination focuses on studying past and present price action to predict the probability of Direct Line's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Direct Line's price. Additionally, you may evaluate how the addition of Direct Line to your portfolios can decrease your overall portfolio volatility.
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