Davis Commodities Valuation
| DTCK Stock | 0.92 0.02 2.13% |
Today, the firm appears to be overvalued. Davis Commodities shows a prevailing Real Value of USD0.81 per share. The current price of the firm is USD0.92. Our model computes the value of Davis Commodities from reviewing the firm fundamentals such as Shares Outstanding of 24.5 M, current valuation of 21.76 M, and Profit Margin of 0 % as well as analyzing its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Davis Commodities' price fluctuation is dangerous at this time. Calculation of the real value of Davis Commodities is based on 3 months time horizon. Increasing Davis Commodities' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Davis Commodities' intrinsic value may or may not be the same as its current market price of 0.92, 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 0.92 | Real 0.81 | Hype 0.91 | Naive 0.89 |
The intrinsic value of Davis Commodities' 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 Davis Commodities' stock price.
Estimating the potential upside or downside of Davis Commodities Limited helps investors to forecast how Davis 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 Davis Commodities more accurately as focusing exclusively on Davis Commodities' fundamentals will not take into account other important factors: Davis Commodities Total Value Analysis
Davis Commodities Limited is currently forecasted to have valuation of 21.76 M with market capitalization of 22.53 M, debt of 734 K, and cash on hands of . 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 Davis Commodities fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
21.76 M | 22.53 M | 734 K |
Davis Commodities Investor Information
About 96.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 1.94. Some equities with similar Price to Book (P/B) outperform the market in the long run. Davis Commodities had not issued any dividends in recent years. Based on the key indicators related to Davis Commodities' liquidity, profitability, solvency, and operating efficiency, Davis Commodities Limited is not in a good financial situation at the moment. It has a very high risk of going through financial straits in April.Davis Commodities Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The latest return on assets of Davis suggests not a very effective usage of assets in March.Davis Commodities Ownership Allocation
Davis Commodities Limited shows majority of its outstanding shares owned by insiders. An insider is usually defined as a corporate executive, director, member of the board or institutional investor who own at least 10% of the company's outstanding shares. 95.54 percent of Davis Commodities outstanding shares that are owned by insiders denotes they have been buying or selling the stock in recent months in anticipation of some upcoming event.Davis Commodities Profitability Analysis
The company reported the previous year's revenue of 142 M. Net Income was 1.09 M with profit before overhead, payroll, taxes, and interest of 5.71 M.About Davis Commodities Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Davis Commodities Limited. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Davis Commodities based exclusively on its fundamental and basic technical indicators. By analyzing Davis Commodities's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Davis Commodities's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Davis Commodities. We calculate exposure to Davis Commodities's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Davis Commodities's related companies.Davis Commodities Growth Indicators
Investing in growth stocks can be very risky. If the company such as Davis Commodities does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 24.5 M | |
| Quarterly Earnings Growth Y O Y | -0.351 |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Davis Commodities Limited. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Is Consumer Staples Distribution & Retail 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 Davis Commodities. If investors know Davis 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 Davis Commodities listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Davis Commodities is measured differently than its book value, which is the value of Davis that is recorded on the company's balance sheet. Investors also form their own opinion of Davis Commodities' value that differs from its market value or its book value, called intrinsic value, which is Davis Commodities' 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 Davis Commodities' market value can be influenced by many factors that don't directly affect Davis Commodities' 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 Davis Commodities' value and its price as these two are different measures arrived at by different means. Investors typically determine if Davis Commodities is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Davis Commodities' 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.