Albemarle Stock Valuation

ALB
 Stock
  

USD 281.57  15.87  5.97%   

Do you wonder what the value of Albemarle Corp is? 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 Albemarle Corp, is its stock price multiplied by the total number of shares outstanding, calculating Albemarle Corp's enterprise value requires a different approach. It uses Albemarle Corp'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 Enterprise Value is expected to grow to about 31 B, whereas Free Cash Flow is forecasted to decline to (625.4 M).
Albemarle Corp shows a prevailing Real Value of $238.74 per share. The current price of the firm is $281.57. At this time, the firm appears to be overvalued. Our model approximates the value of Albemarle Corp from analyzing the firm fundamentals such as return on equity of 6.07 %, and Profit Margin of 7.76 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor taking in undervalued instruments and trading overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
Albemarle Corp 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 Albemarle Corp's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Albemarle Most Recent Valuation Data

Price Book
5.11
EPS Estimate Next Quarter
3.81
Price Sales
7.18
Forward Annual Dividend Yield
0.0061
EBITDA
1.3 B
Dividend Share
1.57
Ex Dividend Date
2022-09-15
Overvalued
Today 281.57
Please note that Albemarle Corp's price fluctuation is very steady at this time. Calculation of the real value of Albemarle Corp is based on 3 months time horizon. Increasing Albemarle Corp's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Albemarle Corp is useful when determining the fair value of the Albemarle stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Albemarle Corp. Since Albemarle Corp is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Albemarle Stock. However, Albemarle Corp'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.
235.46
Downside
238.74
Real Value
309.73
Upside
Estimating the potential upside or downside of Albemarle Corp helps investors to forecast how Albemarle 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 Albemarle Corp more accurately as focusing exclusively on Albemarle Corp's fundamentals will not take into account other important factors:
Earnings
Estimates (8)
LowProjected EPSHigh
3.953.994.10
Details
Hype
Prediction
LowEstimated ValueHigh
277.14280.42283.70
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
1.031.041.05
Details
18 Analysts
Consensus
LowTarget PriceHigh
80.00249.40325.00
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 Albemarle Corp's intrinsic value based on its ongoing forecasts of Albemarle Corp's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Albemarle Corp's closest peers. When choosing an evaluation method for Albemarle Corp, 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.

Albemarle Corp Investments

730.45 Million

Albemarle Valuation Drivers Correlation

Many accounts on the financial statements of Albemarle Corp are highly interrelated and sometimes correlated. Consequently, when conducting Albemarle'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 Albemarle
Click cells to compare fundamentals

Albemarle Valuation Trend

Knowing Albemarle Corp's actual value is paramount for traders to make sound investment determinations. Albemarle Corp's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Albemarle Corp's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Albemarle Corp'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.

Albemarle Market Cap

Albemarle Corp is number one stock in market capitalization category among related companies. Market capitalization of Specialty Chemicals industry is presently estimated at about 33.08 Billion. Albemarle Corp totals roughly 32.94 Billion in market capitalization claiming about 100% of equities listed under Specialty Chemicals industry.
Capitalization  Valuation  Total debt  Workforce  Revenue

Albemarle Corp Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Albemarle Corp's current stock value. Our valuation model uses many indicators to compare Albemarle Corp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Albemarle Corp competition to find correlations between indicators driving Albemarle Corp's intrinsic value. More Info.
Albemarle Corp is number one stock in five year return category among related companies. It is number one stock in price to book category among related companies fabricating about  4.25  of Price to Book per Five Year Return. As of August 12, 2022, Price to Book Value is expected to decline to 4.33. Comparative valuation analysis is a catch-all model that can be used if you cannot value Albemarle Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Albemarle Corp'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 Albemarle Corp'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 Albemarle Corp'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 Albemarle Corp and how it compares across the competition.

About Albemarle Corp Valuation

The equity valuation mechanism determines the current worth of Albemarle Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Albemarle Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Albemarle Corp based exclusively on its fundamental and basic technical indicators. By analyzing Albemarle Corp'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 Albemarle Corp'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 Albemarle Corp. We calculate exposure to Albemarle Corp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Albemarle Corp's related companies.
Fiscal Year End
December
Industry
Specialty Chemicals
Concentration
Specialty Chemicals
Full Time Employees
K
Service Category
Chemicals
Employer Id Number
54-1692118
Last ReportedProjected for 2022
Gross Profit998 M1.1 B
Profit Margin 0.037  0.0379 
Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals worldwide. Albemarle Corporation was founded in 1887 and is headquartered in Charlotte, North Carolina. Albemarle Corp operates under Specialty Chemicals classification in the United States and is traded on New York Stock Exchange. It employs 6000 people.

Albemarle Corp Quarterly Enterprise Value

26.5 Billion

Albemarle Corp's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Albemarle Corp's value is low or high relative to the company's performance and growth projections. Determining the market value of Albemarle Corp can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Albemarle Corp represents a small ownership stake in the entity. As a stockholder of Albemarle, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Albemarle Corp Dividends Analysis For Valuation

The current year Dividend Yield is expected to grow to 0.009737, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (191.9 M). . Albemarle Corp Earning Before Interest and Taxes EBIT is projected to decrease significantly based on the last few years of reporting. The past year's Earning Before Interest and Taxes EBIT was at 214.59 Million. The current year Earnings per Basic Share is expected to grow to 1.10, whereas Accumulated Retained Earnings Deficit are forecasted to decline to about 2.9 B.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-177.9 M-191.9 M
Dividend Yield 0.007  0.009737 
Dividends per Basic Common Share 1.56  1.51 
There are various types of dividends Albemarle Corp can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Albemarle shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Albemarle Corp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Albemarle pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Albemarle Corp by the value of the dividends paid out.

Albemarle Corp 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 Albemarle Corp 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 Ratio0.57
Earnings Quarterly Growth164.80%
Revenue Growth36.00%
Payout Ratio66.03%
Enterprise Value To Ebitda30.46
Earnings Growth156.00%
Enterprise Value To Revenue8.55

Albemarle Corp Current Valuation Indicators

Valuation refers to the process of determining the present value of Albemarle Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Albemarle we look at many different elements of the entity such as Albemarle's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Albemarle Corp'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 Albemarle Corp'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 Albemarle Corp, 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 Albemarle Corp'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 Albemarle Corp's worth.
Please continue to Trending Equities. Note that the Albemarle Corp information on this page should be used as a complementary analysis to other Albemarle Corp'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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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Is Albemarle Corp'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 Albemarle Corp. If investors know Albemarle 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 Albemarle Corp 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
-0.044
Market Capitalization
31.1 B
Quarterly Revenue Growth YOY
0.91
Return On Assets
0.058
Return On Equity
0.0566
The market value of Albemarle Corp is measured differently than its book value, which is the value of Albemarle that is recorded on the company's balance sheet. Investors also form their own opinion of Albemarle Corp's value that differs from its market value or its book value, called intrinsic value, which is Albemarle Corp'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 Albemarle Corp's market value can be influenced by many factors that don't directly affect Albemarle Corp'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 Albemarle Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Albemarle Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Albemarle Corp'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.