Aerojet Stock Valuation

AJRD
 Stock
  

USD 39.72  0.52  1.29%   

What is the value of Aerojet Rocketdyne today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Aerojet Rocketdyne, is its stock price multiplied by the total number of shares outstanding, calculating Aerojet Rocketdyne's enterprise value requires a different approach. It uses Aerojet Rocketdyne's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current year Tangible Asset Value is expected to grow to about 2.2 B, whereas Free Cash Flow is forecasted to decline to about 161.8 M.
Aerojet Rocketdyne shows a prevailing Real Value of $47.45 per share. The current price of the firm is $39.72. At this time, the firm appears to be undervalued. Our model approximates the value of Aerojet Rocketdyne from analyzing the firm fundamentals such as Return On Equity of 37.10 %, profit margin of 6.96 %, and Current Valuation of 2.93 B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor purchasing undervalued instruments and exiting overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
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Aerojet Rocketdyne Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Aerojet Rocketdyne's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Aerojet Most Recent Valuation Data

Price Book
5.55
Price Sales
1.47
EBITDA
321.9 M
Ex Dividend Date
2021-03-09
Beta
0.45
Fiscal Year End
December
Industry
Aerospace & Defense
Undervalued
Today 39.72
Please note that Aerojet Rocketdyne's price fluctuation is very steady at this time. Calculation of the real value of Aerojet Rocketdyne is based on 3 months time horizon. Increasing Aerojet Rocketdyne's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Aerojet Rocketdyne Holdings is useful when determining the fair value of the Aerojet stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Aerojet Rocketdyne. Since Aerojet Rocketdyne is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Aerojet Stock. However, Aerojet Rocketdyne'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.
47.45
Real Value
49.25
Upside
Estimating the potential upside or downside of Aerojet Rocketdyne Holdings helps investors to forecast how Aerojet 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 Aerojet Rocketdyne more accurately as focusing exclusively on Aerojet Rocketdyne's fundamentals will not take into account other important factors:
Earnings
Estimates (3)
LowProjected EPSHigh
2.012.042.06
Details
Hype
Prediction
LowEstimated ValueHigh
37.9139.7141.51
Details
Naive
Forecast
LowNext ValueHigh
39.3741.1642.96
Details
3 Analysts
Consensus
LowTarget PriceHigh
51.0051.0051.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Aerojet Rocketdyne's intrinsic value based on its ongoing forecasts of Aerojet Rocketdyne's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Aerojet Rocketdyne's closest peers. When choosing an evaluation method for Aerojet Rocketdyne, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Aerojet Rocketdyne Investments

10.86 Million

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Aerojet Valuation Drivers Correlation

Many accounts on the financial statements of Aerojet Rocketdyne are highly interrelated and sometimes correlated. Consequently, when conducting Aerojet's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Aerojet
Click cells to compare fundamentals

Aerojet Valuation Trend

Knowing Aerojet Rocketdyne's actual value is paramount for traders to make sound investment determinations. Aerojet Rocketdyne's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Aerojet Rocketdyne's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Aerojet Rocketdyne's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Aerojet Market Cap

Aerojet Rocketdyne Holdings is number one stock in market capitalization category among related companies. Market capitalization of Aerospace & Defense industry is presently estimated at about 1.27 Trillion. Aerojet Rocketdyne adds roughly 3.13 Billion in market capitalization claiming only tiny portion of stocks in Aerospace & Defense industry.
Capitalization  Valuation  Workforce  Total debt  Revenue

Aerojet Rocketdyne Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Aerojet Rocketdyne's current stock value. Our valuation model uses many indicators to compare Aerojet Rocketdyne value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Aerojet Rocketdyne competition to find correlations between indicators driving Aerojet Rocketdyne's intrinsic value. More Info.
Aerojet Rocketdyne Holdings is number one stock in price to earning category among related companies. It is number one stock in price to sales category among related companies fabricating about  0.07  of Price to Sales per Price to Earning. The ratio of Price to Earning to Price to Sales for Aerojet Rocketdyne Holdings is roughly  14.78 . As of June 29, 2022, Price to Sales Ratio is expected to decline to 1.51. Comparative valuation analysis is a catch-all model that can be used if you cannot value Aerojet Rocketdyne by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Aerojet Rocketdyne's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Aerojet Rocketdyne's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Aerojet Rocketdyne'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 Aerojet Rocketdyne and how it compares across the competition.

About Aerojet Rocketdyne Valuation

The equity valuation mechanism determines the current worth of Aerojet Rocketdyne Holdings on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Aerojet Rocketdyne Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Aerojet Rocketdyne based exclusively on its fundamental and basic technical indicators. By analyzing Aerojet Rocketdyne's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Aerojet Rocketdyne's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Aerojet Rocketdyne. We calculate exposure to Aerojet Rocketdyne's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Aerojet Rocketdyne's related companies.
Last ReportedProjected for 2022
Gross Profit387.9 M357.1 M
Profit Margin 0.08  0.08 
Aerojet Rocketdyne Holdings, Inc. designs, develops, manufactures, and sells aerospace and defense products and systems in the United States. Aerojet Rocketdyne Holdings, Inc. was incorporated in 1915 and is headquartered in El Segundo, California. Aerojet Rocketdyne operates under Aerospace Defense classification in the United States and is traded on New York Stock Exchange. It employs 5000 people.

Aerojet Rocketdyne Quarterly Enterprise Value

2.97 Billion

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Aerojet Rocketdyne Valuation Growth Rates

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. Note, investing in growth stocks can be very risky. If the company such as Aerojet Rocketdyne 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.
Quick Ratio1.29
Earnings Quarterly Growth53.60%
Revenue Growth3.00%
Enterprise Value To Ebitda9.09
Earnings Growth50.50%
Enterprise Value To Revenue1.33

Aerojet Rocketdyne Current Valuation Indicators

Valuation refers to the process of determining the present value of Aerojet Rocketdyne Holdings and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Aerojet we look at many different elements of the entity such as Aerojet's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Aerojet Rocketdyne's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Aerojet Rocketdyne's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Aerojet Rocketdyne, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Aerojet Rocketdyne's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Aerojet Rocketdyne's worth.
Please continue to Trending Equities. Note that the Aerojet Rocketdyne information on this page should be used as a complementary analysis to other Aerojet Rocketdyne's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try CEO Directory module to screen CEOs from public companies around the world.

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When running Aerojet Rocketdyne price analysis, check to measure Aerojet Rocketdyne'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 Aerojet Rocketdyne is operating at the current time. Most of Aerojet Rocketdyne's value examination focuses on studying past and present price action to predict the probability of Aerojet Rocketdyne's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Aerojet Rocketdyne's price. Additionally, you may evaluate how the addition of Aerojet Rocketdyne to your portfolios can decrease your overall portfolio volatility.
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Is Aerojet Rocketdyne's industry 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 Aerojet Rocketdyne. If investors know Aerojet 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 Aerojet Rocketdyne listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.51
Market Capitalization
3.2 B
Quarterly Revenue Growth YOY
0.03
Return On Assets
0.0679
Return On Equity
0.37
The market value of Aerojet Rocketdyne is measured differently than its book value, which is the value of Aerojet that is recorded on the company's balance sheet. Investors also form their own opinion of Aerojet Rocketdyne's value that differs from its market value or its book value, called intrinsic value, which is Aerojet Rocketdyne's 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 Aerojet Rocketdyne's market value can be influenced by many factors that don't directly affect Aerojet Rocketdyne's 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 Aerojet Rocketdyne's value and its price as these two are different measures arrived at by different means. Investors typically determine Aerojet Rocketdyne value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Aerojet Rocketdyne's 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.