Royal Mail Valuation
| ROYMY Stock | USD 9.24 0.14 1.49% |
At this time, the company appears to be fairly valued. Royal Mail PLC holds a recent Real Value of $9.17 per share. The prevailing price of the company is $9.24. Our model determines the value of Royal Mail PLC from analyzing the company fundamentals such as Operating Margin of 0.03 %, shares outstanding of 478.1 M, and Return On Equity of 0.0535 as well as examining its technical indicators and probability of bankruptcy.
Fairly Valued
Today
Please note that Royal Mail's price fluctuation is very steady at this time. Calculation of the real value of Royal Mail PLC is based on 3 months time horizon. Increasing Royal Mail's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Royal Mail is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Royal Pink Sheet. However, Royal Mail'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 9.24 | Real 9.17 | Hype 9.24 | Naive 9.21 |
The intrinsic value of Royal Mail'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 Royal Mail'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 Royal Mail PLC helps investors to forecast how Royal pink sheet's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Royal Mail more accurately as focusing exclusively on Royal Mail's fundamentals will not take into account other important factors: Royal Mail Total Value Analysis
Royal Mail PLC is at this time expected to have takeover price of 4.28 B with market capitalization of 2.69 B, debt of 872 M, and cash on hands of 1.21 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 Royal Mail fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
4.28 B | 2.69 B | 872 M | 1.21 B |
Royal Mail Investor Information
The company has price-to-book ratio of 0.45. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Royal Mail PLC last dividend was issued on the 28th of July 2022. Royal Mail PLC is not in a good financial situation at this time. It has a very high probability of going through financial hardship in April.Royal Mail Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Royal Mail has an asset utilization ratio of 119.04 percent. This suggests that the Company is making $1.19 for each dollar of assets. An increasing asset utilization means that Royal Mail PLC is more efficient with each dollar of assets it utilizes for everyday operations.Royal Mail Ownership Allocation
Royal Mail owns a total of 478.1 Million outstanding shares. Roughly 99.98 pct. of Royal Mail outstanding shares are held by general public with 0.02 (%) by third-party entities. Please note that no matter how many assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.Royal Mail Profitability Analysis
The company reported the revenue of 12.71 B. Net Income was 612 M with profit before overhead, payroll, taxes, and interest of 5.17 B.About Royal Mail Valuation
Our relative valuation model uses a comparative analysis of Royal Mail. We calculate exposure to Royal Mail's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Royal Mail's related companies.International Distributions Services plc, together with its subsidiaries, operates as a universal postal service provider. International Distributions Services plc was founded in 1516 and is based in London, the United Kingdom. International Distributions is traded on OTC Exchange in the United States.
8 Steps to conduct Royal Mail's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Royal Mail'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 Royal Mail's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Royal Mail's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Royal Mail's revenue streams: Identify Royal Mail's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Royal Mail's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Royal Mail's growth potential: Evaluate Royal Mail's management, business model, and growth potential.
- Determine Royal Mail'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 Royal Mail's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Royal Mail 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 | 956.2 M | |
| Quarterly Earnings Growth Y O Y | -0.427 | |
| Forward Price Earnings | 11.274 | |
| Retained Earnings | 5.2 B |
Additional Tools for Royal Pink Sheet Analysis
When running Royal Mail's price analysis, check to measure Royal Mail'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 Royal Mail is operating at the current time. Most of Royal Mail's value examination focuses on studying past and present price action to predict the probability of Royal Mail's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Royal Mail's price. Additionally, you may evaluate how the addition of Royal Mail to your portfolios can decrease your overall portfolio volatility.