Hexcel Stock Valuation

HXL
 Stock
  

USD 64.25  0.51  0.80%   

What is the enterprise value of Hexcel 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 Hexcel Corp, is its stock price multiplied by the total number of shares outstanding, calculating Hexcel Corp's enterprise value requires a different approach. It uses Hexcel Corp's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Free Cash Flow is expected to hike to about 128.2 M this year. Enterprise Value is expected to hike to about 5.6 B this year.
Hexcel Corp retains a regular Real Value of $65.08 per share. The prevalent price of the firm is $64.25. At this time, the firm appears to be fairly valued. Our model calculates the value of Hexcel Corp from evaluating the firm fundamentals such as Return On Equity of 6.06 %, return on asset of 3.06 %, and Current Valuation of 5.8 B as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage acquiring undervalued assets and dropping overvalued assets since, at some point, asset prices and their ongoing real values will come together.
  
Hexcel 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 Hexcel 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.

Hexcel Most Recent Valuation Data

Price Book
3.65
Enterprise Value
6.1 B
Enterprise Value Ebitda
21.74
Price Sales
3.63
Forward PE
54.64
Trailing PE
59.02
Enterprise Value Revenue
4.14
Fairly Valued
Today 64.25
Please note that Hexcel Corp's price fluctuation is very steady at this time. Calculation of the real value of Hexcel Corp is based on 3 months time horizon. Increasing Hexcel 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 Hexcel Corp is useful when determining the fair value of the Hexcel stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Hexcel Corp. Since Hexcel Corp is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Hexcel Stock. However, Hexcel 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.
65.08
Real Value
67.28
Upside
Estimating the potential upside or downside of Hexcel Corp helps investors to forecast how Hexcel 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 Hexcel Corp more accurately as focusing exclusively on Hexcel Corp's fundamentals will not take into account other important factors:
Earnings
Estimates (7)
LowProjected EPSHigh
0.200.240.32
Details
Hype
Prediction
LowEstimated ValueHigh
61.8764.0766.27
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.10.100.10
Details
11 Analysts
Consensus
LowTarget PriceHigh
48.0059.1168.00
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 Hexcel Corp's intrinsic value based on its ongoing forecasts of Hexcel Corp's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Hexcel Corp's closest peers. When choosing an evaluation method for Hexcel 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.

Hexcel Corp Investments

45.45 Million

Hexcel Valuation Drivers Correlation

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

Hexcel Valuation Trend

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

Hexcel Market Cap

Hexcel Corp is rated # 3 in market capitalization category among related companies. Market capitalization of Aerospace & Defense industry is currently estimated at about 127.7 Billion. Hexcel Corp holds roughly 5.28 Billion in market capitalization claiming about 4% of stocks in Aerospace & Defense industry.
Capitalization  Total debt  Valuation  Revenue  Workforce

Hexcel Corp Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Hexcel Corp's current stock value. Our valuation model uses many indicators to compare Hexcel Corp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Hexcel Corp competition to find correlations between indicators driving Hexcel Corp's intrinsic value. More Info.
Hexcel Corp is one of the top stocks in price to earning category among related companies. It is rated # 4 in last dividend paid category among related companies . The ratio of Price to Earning to Last Dividend Paid for Hexcel Corp is about  232.25 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Hexcel Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Hexcel 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 Hexcel 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 Hexcel 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 Hexcel Corp and how it compares across the competition.

About Hexcel Corp Valuation

The stock valuation mechanism determines the current worth of Hexcel Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Hexcel Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Hexcel Corp based exclusively on its fundamental and basic technical indicators. By analyzing Hexcel 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 Hexcel 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 Hexcel Corp. We calculate exposure to Hexcel Corp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Hexcel Corp's related companies.
Fiscal Year End
December
Industry
Aerospace & Defense
Concentration
Aerospace & Defense
Full Time Employees
4.9 K
Service Category
Aerospace & Defense
Employer Id Number
94-1109521
Last ReportedProjected for 2022
Gross Profit250.1 M325.8 M
Profit Margin 0.012  0.0123 
Hexcel Corporation, together with its subsidiaries, develops, manufactures, and markets structural materials for use in commercial aerospace, space and defense, and industrial markets. Hexcel Corporation was founded in 1946 and is headquartered in Stamford, Connecticut. Hexcel Corp operates under Aerospace Defense classification in the United States and is traded on New York Stock Exchange. It employs 4863 people.

Hexcel Corp Quarterly Enterprise Value

5.14 Billion

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

Hexcel Corp Dividends Analysis For Valuation

Please note that Hexcel Corp has scaled down on payment of dividends at this time. Hexcel Corp Earning Before Interest and Taxes EBIT is relatively stable at the moment as compared to the past year. The company's current value of Earning Before Interest and Taxes EBIT is estimated at 61.89 Million. Price to Earnings Ratio is expected to hike to 294.15 this year, although the value of Accumulated Retained Earnings Deficit will most likely fall to nearly 1.8 B.
There are various types of dividends Hexcel 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 Hexcel 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 Hexcel Corp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Hexcel pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Hexcel Corp by the value of the dividends paid out.

Hexcel 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 Hexcel 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 Ratio1.34
Earnings Quarterly Growth1,931.80%
Revenue Growth22.70%
Payout Ratio18.69%
Enterprise Value To Ebitda21.22
Earnings Growth1,924.60%
Enterprise Value To Revenue3.93

Hexcel Corp Current Valuation Indicators

Valuation refers to the process of determining the present value of Hexcel Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Hexcel we look at many different elements of the entity such as Hexcel's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Hexcel 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 Hexcel 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 Hexcel 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 Hexcel 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 Hexcel Corp's worth.
Please check Risk vs Return Analysis. Note that the Hexcel Corp information on this page should be used as a complementary analysis to other Hexcel 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

Complementary Tools for Hexcel Stock analysis

When running Hexcel Corp price analysis, check to measure Hexcel Corp'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 Hexcel Corp is operating at the current time. Most of Hexcel Corp's value examination focuses on studying past and present price action to predict the probability of Hexcel Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Hexcel Corp's price. Additionally, you may evaluate how the addition of Hexcel Corp to your portfolios can decrease your overall portfolio volatility.
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Is Hexcel 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 Hexcel Corp. If investors know Hexcel 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 Hexcel 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
19.25
Market Capitalization
5.4 B
Quarterly Revenue Growth YOY
0.23
Return On Assets
0.0306
Return On Equity
0.0606
The market value of Hexcel Corp is measured differently than its book value, which is the value of Hexcel that is recorded on the company's balance sheet. Investors also form their own opinion of Hexcel Corp's value that differs from its market value or its book value, called intrinsic value, which is Hexcel 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 Hexcel Corp's market value can be influenced by many factors that don't directly affect Hexcel 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 Hexcel Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Hexcel Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hexcel 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.