Atmos Stock Valuation

ATO
 Stock
  

USD 115.38  0.91  0.80%   

What is the current enterprise value of Atmos Energy Corp? 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 Atmos Energy, is its stock price multiplied by the total number of shares outstanding, calculating Atmos Energy's enterprise value requires a different approach. It uses Atmos Energy's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The value of Free Cash Flow is estimated to slide to about (2.8 B). The Enterprise Value is projected to slide to about 17.5 B.
Atmos Energy Corp shows a prevailing Real Value of $113.14 per share. The current price of the firm is $115.38. At this time, the firm appears to be fairly valued. Our model approximates the value of Atmos Energy Corp from analyzing the firm fundamentals such as Current Valuation of 24.14 B, return on equity of 8.63 %, and Profit Margin of 18.91 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor picking up undervalued instruments and discarding overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
Atmos Energy 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 Atmos Energy's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Atmos Most Recent Valuation Data

Price Book
1.8
EPS Estimate Next Quarter
0.49
Price Sales
3.94
Forward Annual Dividend Yield
0.0239
EBITDA
1.4 B
Dividend Share
2.67
Ex Dividend Date
2022-08-19
Fairly Valued
Today 115.38
Please note that Atmos Energy's price fluctuation is very steady at this time. Calculation of the real value of Atmos Energy Corp is based on 3 months time horizon. Increasing Atmos Energy's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Atmos Energy Corp is useful when determining the fair value of the Atmos stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Atmos Energy. Since Atmos Energy is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Atmos Stock. However, Atmos Energy'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.
111.72
Downside
113.14
Real Value
114.56
Upside
Estimating the potential upside or downside of Atmos Energy Corp helps investors to forecast how Atmos 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 Atmos Energy more accurately as focusing exclusively on Atmos Energy's fundamentals will not take into account other important factors:
Earnings
Estimates (5)
LowProjected EPSHigh
5.415.495.53
Details
Hype
Prediction
LowEstimated ValueHigh
112.97114.39115.81
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
1.851.901.94
Details
9 Analysts
Consensus
LowTarget PriceHigh
101.00112.83126.00
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 Atmos Energy's intrinsic value based on its ongoing forecasts of Atmos Energy's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Atmos Energy's closest peers. When choosing an evaluation method for Atmos Energy 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.

Atmos Valuation Drivers Correlation

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

Atmos Valuation Trend

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

Atmos Market Cap

Atmos Energy Corp is number one stock in market capitalization category among related companies. Market capitalization of Utilities—Regulated Gas industry is presently estimated at about 3.89 Trillion. Atmos Energy adds roughly 15.11 Billion in market capitalization claiming only tiny portion of Utilities—Regulated Gas industry.
Capitalization  Total debt  Revenue  Valuation  Workforce

Atmos Energy Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Atmos Energy's current stock value. Our valuation model uses many indicators to compare Atmos Energy value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Atmos Energy competition to find correlations between indicators driving Atmos Energy's intrinsic value. More Info.
Atmos Energy Corp is number one stock in price to earning category among related companies. It is number one stock in beta category among related companies totaling about  0.02  of Beta per Price to Earning. The ratio of Price to Earning to Beta for Atmos Energy Corp is roughly  46.33 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Atmos Energy by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Atmos Energy'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 Atmos Energy'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 Atmos Energy'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 Atmos Energy and how it compares across the competition.

About Atmos Energy Valuation

The equity valuation mechanism determines the current worth of Atmos Energy Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Atmos Energy Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Atmos Energy Corp based exclusively on its fundamental and basic technical indicators. By analyzing Atmos Energy'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 Atmos Energy'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 Atmos Energy. We calculate exposure to Atmos Energy's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Atmos Energy's related companies.
Fiscal Year End
September
Industry
Utilities-Regulated Gas
Concentration
Gas Utilities
Full Time Employees
4.7 K
Service Category
Gas Utilities
Employer Id Number
75-1743247
Last ReportedProjected for 2022
Gross Profit2.7 B2.5 B
Profit Margin 0.22  0.19 
Atmos Energy Corporation, together with its subsidiaries, engages in the regulated natural gas distribution, and pipeline and storage businesses in the United States. Atmos Energy Corporation was founded in 1906 and is headquartered in Dallas, Texas. Atmos Energy operates under UtilitiesRegulated Gas classification in the United States and is traded on New York Stock Exchange. It employs 4684 people.

Atmos Energy Quarterly Enterprise Value

22.96 Billion

Atmos Energy's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Atmos Energy's value is low or high relative to the company's performance and growth projections. Determining the market value of Atmos Energy can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Atmos Energy represents a small ownership stake in the entity. As a stockholder of Atmos, 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.

Atmos Energy Dividends Analysis For Valuation

The value of Payment of Dividends and Other Cash Distributions is expected to slide to about (314.5 M). The value of Dividend Yield is estimated to slide to 0.025. Atmos Energy Accumulated Retained Earnings Deficit are quite stable at the moment as compared to the past year. The company's current value of Accumulated Retained Earnings Deficit is estimated at 3.49 Billion. Price to Earnings Ratio is expected to rise to 21.20 this year, although the value of Earning Before Interest and Taxes EBIT will most likely fall to about 929 M.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-291.5 M-314.5 M
Dividend Yield 0.0252  0.025 
Dividends per Basic Common Share 2.88  2.54 
There are various types of dividends Atmos Energy 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 Atmos 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 Atmos Energy Corp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Atmos pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Atmos Energy by the value of the dividends paid out.

Atmos Energy 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 Atmos Energy 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 Ratio0.39
Earnings Quarterly Growth9.50%
Revenue Growth25.10%
Payout Ratio48.79%
Enterprise Value To Ebitda17.46
Earnings Growth3.20%
Enterprise Value To Revenue6.29

Atmos Energy Current Valuation Indicators

Valuation refers to the process of determining the present value of Atmos Energy Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Atmos we look at many different elements of the entity such as Atmos's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Atmos Energy'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 Atmos Energy'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 Atmos Energy, 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 Atmos Energy'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 Atmos Energy's worth.
Please continue to Trending Equities. Note that the Atmos Energy Corp information on this page should be used as a complementary analysis to other Atmos Energy'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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

Complementary Tools for Atmos Stock analysis

When running Atmos Energy Corp price analysis, check to measure Atmos Energy'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 Atmos Energy is operating at the current time. Most of Atmos Energy's value examination focuses on studying past and present price action to predict the probability of Atmos Energy's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Atmos Energy's price. Additionally, you may evaluate how the addition of Atmos Energy to your portfolios can decrease your overall portfolio volatility.
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Is Atmos Energy'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 Atmos Energy. If investors know Atmos 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 Atmos Energy 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
0.18
Market Capitalization
15.9 B
Quarterly Revenue Growth YOY
0.35
Return On Assets
0.0279
Return On Equity
0.0882
The market value of Atmos Energy Corp is measured differently than its book value, which is the value of Atmos that is recorded on the company's balance sheet. Investors also form their own opinion of Atmos Energy's value that differs from its market value or its book value, called intrinsic value, which is Atmos Energy'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 Atmos Energy's market value can be influenced by many factors that don't directly affect Atmos Energy'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 Atmos Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine Atmos Energy value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Atmos Energy'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.