Elkem ASA Valuation

ELK Stock  NOK 22.78  0.38  1.64%   
At this time, the firm appears to be overvalued. Elkem ASA shows a prevailing Real Value of 19.26 per share. The current price of the firm is 22.78. Our model computes the value of Elkem ASA from reviewing the firm fundamentals such as Profit Margin of 0.21 %, current valuation of 25.67 B, and Shares Outstanding of 635.52 M as well as analyzing its technical indicators and probability of bankruptcy.
Overvalued
Today
22.78
22.822.7819.19.2623.223.1623.022.98100%
Please note that Elkem ASA's price fluctuation is not too volatile at this time. Calculation of the real value of Elkem ASA is based on 3 months time horizon. Increasing Elkem ASA'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 Elkem stock is determined by what a typical buyer is willing to pay for full or partial control of Elkem ASA. Since Elkem ASA is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Elkem Stock. However, Elkem ASA'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  22.78 Real  19.26 Hype  23.16 Naive  22.98
The intrinsic value of Elkem ASA's 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 Elkem ASA's stock price.
19.26
Real Value
25.48
Upside
Estimating the potential upside or downside of Elkem ASA helps investors to forecast how Elkem 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 Elkem ASA more accurately as focusing exclusively on Elkem ASA's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
21.1622.5623.96
Details
Hype
Prediction
LowEstimatedHigh
19.5923.1626.73
Details
Naive
Forecast
LowNext ValueHigh
19.4022.9826.55
Details

Elkem ASA Total Value Analysis

Elkem ASA is currently forecasted to have takeover price of 25.67 B with market capitalization of 24.28 B, debt of 10.33 B, and cash on hands of 9.26 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 Elkem ASA fundamentals before making investing decisions based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
25.67 B
24.28 B
10.33 B
9.26 B

Elkem ASA Investor Information

About 55.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 0.77. Some equities with similar Price to Book (P/B) outperform the market in the long run. Elkem ASA recorded earning per share (EPS) of 16.77. The entity last dividend was issued on the 2nd of May 2023. Based on the key measurements obtained from Elkem ASA's financial statements, Elkem ASA is not in a good financial situation at the moment. It has a very high risk of going through financial straits in March.

Elkem ASA Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Elkem ASA has an asset utilization ratio of 85.29 percent. This suggests that the Company is making 0.85 for each dollar of assets. An increasing asset utilization means that Elkem ASA is more efficient with each dollar of assets it utilizes for everyday operations.

Elkem ASA Ownership Allocation

Elkem ASA holds a total of 635.52 Million outstanding shares. Elkem ASA retains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. 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.
Institutions27.78%Public16.82%100%

Elkem ASA Profitability Analysis

The company reported the revenue of 45.02 B. Net Income was 12.41 B with profit before overhead, payroll, taxes, and interest of 23.64 B.

About Elkem ASA Valuation

We use absolute and relative valuation methodologies to arrive at the intrinsic value of Elkem ASA. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Elkem ASA based exclusively on its fundamental and basic technical indicators. By analyzing Elkem ASA's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Elkem ASA's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Elkem ASA. We calculate exposure to Elkem ASA's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Elkem ASA's related companies.
Elkem ASA manufactures and sells metals and materials in Norway and internationally. Elkem ASA is a subsidiary of Bluestar Elkem International Co., Ltd. ELKEM ASA operates under Specialty Chemicals classification in Norway and is traded on Oslo Stock Exchange. It employs 6280 people.

8 Steps to conduct Elkem ASA's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Elkem ASA'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 Elkem ASA's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Elkem ASA's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Elkem ASA's revenue streams: Identify Elkem ASA's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Elkem ASA's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Elkem ASA's growth potential: Evaluate Elkem ASA's management, business model, and growth potential.
  • Determine Elkem ASA'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 Elkem ASA's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

Other Information on Investing in Elkem Stock

Elkem ASA financial ratios help investors to determine whether Elkem Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Elkem with respect to the benefits of owning Elkem ASA security.