Discover Financial Valuation
| DC7 Stock | EUR 152.34 1.92 1.28% |
At this time, the firm appears to be overvalued. Discover Financial shows a prevailing Real Value of €136.88 per share. The current price of the firm is €152.34. Our model computes the value of Discover Financial from reviewing the firm fundamentals such as Profit Margin of 0.31 %, current valuation of 38.32 B, and Shares Outstanding of 267 M as well as analyzing its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Discover Financial's price fluctuation is very steady at this time. Calculation of the real value of Discover Financial is based on 3 months time horizon. Increasing Discover Financial'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 Discover stock is determined by what a typical buyer is willing to pay for full or partial control of Discover Financial Services. Since Discover Financial is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Discover Stock. However, Discover Financial'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 152.34 | Real 136.88 | Hype 150.42 | Naive 151.02 |
The real value of Discover Stock, also known as its intrinsic value, is the underlying worth of Discover Financial Company, which is reflected in its stock price. It is based on Discover Financial's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Discover Financial'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 Discover Financial Services helps investors to forecast how Discover 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 Discover Financial more accurately as focusing exclusively on Discover Financial's fundamentals will not take into account other important factors: Discover Financial Total Value Analysis
Discover Financial Services is currently estimated to have takeover price of 38.32 B with market capitalization of 27.94 B, debt of 20.11 B, and cash on hands of 19.93 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 Discover Financial fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
38.32 B | 27.94 B | 20.11 B | 19.93 B |
Discover Financial Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Discover Financial has an asset utilization ratio of 10.13 percent. This implies that the Company is making €0.1 for each dollar of assets. An increasing asset utilization means that Discover Financial Services is more efficient with each dollar of assets it utilizes for everyday operations.Discover Financial Ownership Allocation
Discover Financial holds a total of 267 Million outstanding shares. The majority of Discover Financial Services outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Discover Financial to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Discover Financial. Please pay attention to any change in the institutional holdings of Discover Financial Services 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.Discover Financial Profitability Analysis
The company reported the revenue of 13.34 B. Net Income was 4.39 B with profit before overhead, payroll, taxes, and interest of 10.46 B.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Discover Financial'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 Discover Financial and how it compares across the competition.
About Discover Financial Valuation
The stock valuation mechanism determines Discover Financial's current worth on a weekly basis. Our valuation model uses a comparative analysis of Discover Financial. We calculate exposure to Discover Financial's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Discover Financial's related companies.Discover Financial Services, through its subsidiaries, operates as a direct banking and payment services company in the United States. The company was incorporated in 1986 and is based in Riverwoods, Illinois. DISCOVER FINL operates under Credit Services classification in Germany and is traded on Frankfurt Stock Exchange. It employs 16600 people.
8 Steps to conduct Discover Financial's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Discover Financial'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 Discover Financial's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Discover Financial's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Discover Financial's revenue streams: Identify Discover Financial's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Discover Financial's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Discover Financial's growth potential: Evaluate Discover Financial's management, business model, and growth potential.
- Determine Discover Financial'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 Discover Financial'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 Discover Stock analysis
When running Discover Financial's price analysis, check to measure Discover Financial'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 Discover Financial is operating at the current time. Most of Discover Financial's value examination focuses on studying past and present price action to predict the probability of Discover Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Discover Financial's price. Additionally, you may evaluate how the addition of Discover Financial to your portfolios can decrease your overall portfolio volatility.
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