Desktop Stock Valuation

DM
 Stock
  

USD 2.00  0.05  2.44%   

What is the enterprise value of Desktop Metal? 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 Desktop Metal, is its stock price multiplied by the total number of shares outstanding, calculating Desktop Metal's enterprise value requires a different approach. It uses Desktop Metal's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Desktop Metal shows a prevailing Real Value of $4.69 per share. The current price of the firm is $2.0. Based on Macroaxis valuation methodology, the firm appears to be undervalued. Our model computes the value of Desktop Metal from reviewing the firm fundamentals such as Profit Margin of (2.43) %, shares outstanding of 317.58 M, and Current Valuation of 551.38 M as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we advise acquiring undervalued instruments and dropping overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
  
Desktop Metal 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 Desktop Metal's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Desktop Most Recent Valuation Data

Beta
0.35
change Receivables
-19.1 M
Fiscal Year End
December
property Plant And Equipment Net
76.5 M
Enterprise Value
551.4 M
current Deferred Revenue
32.3 M
Undervalued
Today 2.00
Please note that Desktop Metal's price fluctuation is unstable at this time. Calculation of the real value of Desktop Metal is based on 3 months time horizon. Increasing Desktop Metal's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Desktop Metal is useful when determining the fair value of the Desktop stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Desktop Metal. Since Desktop Metal is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Desktop Stock. However, Desktop Metal'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.
4.69
Real Value
9.81
Upside
Estimating the potential upside or downside of Desktop Metal helps investors to forecast how Desktop 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 Desktop Metal more accurately as focusing exclusively on Desktop Metal's fundamentals will not take into account other important factors:
Earnings
Estimates (2)
LowProjected EPSHigh
-0.41-0.35-0.29
Details
Hype
Prediction
LowEstimated ValueHigh
0.102.057.17
Details
Naive
Forecast
LowNext ValueHigh
0.0438422.197.32
Details
5 Analysts
Consensus
LowTarget PriceHigh
11.0012.6716.00
Details

Desktop Metal Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Desktop Metal's current stock value. Our valuation model uses many indicators to compare Desktop Metal value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Desktop Metal competition to find correlations between indicators driving Desktop Metal's intrinsic value. More Info.
Desktop Metal is one of the top stocks in price to sales category among related companies. It is rated # 2 in price to book category among related companies fabricating about  0.25  of Price to Book per Price to Sales. The ratio of Price to Sales to Price to Book for Desktop Metal is roughly  4.05 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Desktop Metal by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Desktop Metal'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 Desktop Metal'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 Desktop Metal'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 Desktop Metal and how it compares across the competition.

About Desktop Metal Valuation

The stock valuation mechanism determines the current worth of Desktop Metal on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Desktop Metal. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Desktop Metal based exclusively on its fundamental and basic technical indicators. By analyzing Desktop Metal'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 Desktop Metal'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 Desktop Metal. We calculate exposure to Desktop Metal's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Desktop Metal's related companies.
Fiscal Year End
December
Industry
Computer Hardware
Full Time Employees
1.4 K
Desktop Metal, Inc. engages in manufacture and sale of additive manufacturing technologies for engineers, designers, and manufacturers in the Americas, Europe, the Middle East, Africa, and the Asia- Pacific. The company was founded in 2015 and is headquartered in Burlington, Massachusetts. Desktop Metal operates under Computer Hardware classification in the United States and is traded on New York Stock Exchange. It employs 1370 people.
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When running Desktop Metal price analysis, check to measure Desktop Metal'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 Desktop Metal is operating at the current time. Most of Desktop Metal's value examination focuses on studying past and present price action to predict the probability of Desktop Metal's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Desktop Metal's price. Additionally, you may evaluate how the addition of Desktop Metal to your portfolios can decrease your overall portfolio volatility.
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Is Desktop Metal'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 Desktop Metal. If investors know Desktop 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 Desktop Metal listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
651 M
Quarterly Revenue Growth YOY
0.85
Return On Assets
(0.13) 
Return On Equity
(0.59) 
The market value of Desktop Metal is measured differently than its book value, which is the value of Desktop that is recorded on the company's balance sheet. Investors also form their own opinion of Desktop Metal's value that differs from its market value or its book value, called intrinsic value, which is Desktop Metal'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 Desktop Metal's market value can be influenced by many factors that don't directly affect Desktop Metal'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 Desktop Metal's value and its price as these two are different measures arrived at by different means. Investors typically determine Desktop Metal value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Desktop Metal'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.