Newell Stock Valuation

NWL
 Stock
  

USD 19.92  0.35  1.79%   

What is the enterprise value of Newell Brands? 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 Newell Brands, is its stock price multiplied by the total number of shares outstanding, calculating Newell Brands' enterprise value requires a different approach. It uses Newell Brands' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Enterprise Value is expected to hike to about 17.6 B this year, although the value of Free Cash Flow will most likely fall to nearly 793 M.
Newell Brands secures a last-minute Real Value of $25.05 per share. The latest price of the firm is $19.92. At this time, the firm appears to be undervalued. Our model forecasts the value of Newell Brands from analyzing the firm fundamentals such as Return On Equity of 18.20 %, profit margin of 6.89 %, and Current Valuation of 13.91 B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend acquiring undervalued stocks and dropping overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
  
Newell Brands 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 Newell Brands's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Newell Most Recent Valuation Data

Price Book
2.08
EPS Estimate Next Quarter
0.57
Price Sales
0.78
Forward Annual Dividend Yield
0.0464
EBITDA
1.4 B
Dividend Share
0.92
Ex Dividend Date
2022-05-27
Undervalued
Today 19.92
Please note that Newell Brands' price fluctuation is not too volatile at this time. Calculation of the real value of Newell Brands is based on 3 months time horizon. Increasing Newell Brands' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Newell Brands is useful when determining the fair value of the Newell stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Newell Brands. Since Newell Brands is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Newell Stock. However, Newell Brands' 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.
25.05
Real Value
27.93
Upside
Estimating the potential upside or downside of Newell Brands helps investors to forecast how Newell 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 Newell Brands more accurately as focusing exclusively on Newell Brands' fundamentals will not take into account other important factors:
Earnings
Estimates (6)
LowProjected EPSHigh
1.711.731.74
Details
Hype
Prediction
LowEstimated ValueHigh
16.9119.7922.67
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.620.690.76
Details
8 Analysts
Consensus
LowTarget PriceHigh
25.0030.0035.00
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 Newell Brands' intrinsic value based on its ongoing forecasts of Newell Brands' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Newell Brands' closest peers. When choosing an evaluation method for Newell Brands, 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.

Newell Valuation Drivers Correlation

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

Newell Valuation Trend

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

Newell Market Cap

Newell Brands is considered to be number one stock in market capitalization category among related companies. Market capitalization of Household & Personal Products industry is now estimated at about 973.88 Billion. Newell Brands maintains roughly 8.43 Billion in market capitalization contributing less than 1% to equities under Household & Personal Products industry.
Capitalization  Revenue  Workforce  Valuation  Total debt

Newell Brands Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Newell Brands's current stock value. Our valuation model uses many indicators to compare Newell Brands value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Newell Brands competition to find correlations between indicators driving Newell Brands's intrinsic value. More Info.
Newell Brands is considered to be number one stock in five year return category among related companies. It is considered to be number one stock in price to sales category among related companies fabricating about  0.18  of Price to Sales per Five Year Return. The ratio of Five Year Return to Price to Sales for Newell Brands is roughly  5.60 . Price to Sales Ratio is expected to hike to 1.29 this year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Newell Brands by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Newell Brands' 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 Newell Brands' 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 Newell Brands' 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 Newell Brands and how it compares across the competition.

About Newell Brands Valuation

The equity valuation mechanism determines the current worth of Newell Brands on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Newell Brands. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Newell Brands based exclusively on its fundamental and basic technical indicators. By analyzing Newell Brands'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 Newell Brands'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 Newell Brands. We calculate exposure to Newell Brands's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Newell Brands's related companies.
Fiscal Year End
December
Industry
Household & Personal Products
Concentration
Housewares & Specialties
Full Time Employees
32 K
Service Category
Household Durables
Employer Id Number
36-3514169
Last ReportedProjected for 2022
Gross Profit3.7 B3.5 B
Profit Margin 5.40  5.83 
Newell Brands Inc. designs, manufactures, sources, and distributes consumer and commercial products worldwide. Newell Brands Inc. was founded in 1903 and is based in Atlanta, Georgia. Newell Brands operates under Household Personal Products classification in the United States and is traded on NASDAQ Exchange. It employs 32000 people.
Newell Brands' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Newell Brands' value is low or high relative to the company's performance and growth projections. Determining the market value of Newell Brands can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Newell Brands represents a small ownership stake in the entity. As a stockholder of Newell, 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.

Newell Brands Dividends Analysis For Valuation

Dividend Yield is expected to hike to 0.06 this year, although the value of Payment of Dividends and Other Cash Distributions will most likely fall to (379 M). . Newell Brands Earnings per Basic Share are relatively stable at the moment as compared to the past year. The company's current value of Earnings per Basic Share is estimated at 1.45. Earnings per Diluted Share is expected to hike to 1.45 this year, although the value of Earning Before Interest and Taxes EBIT will most likely fall to (579.9 M).
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-351.3 M-379 M
Dividend Yield 0.06  0.06 
Dividends per Basic Common Share 1.06  0.93 
There are various types of dividends Newell Brands 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 Newell 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 Newell Brands directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Newell pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Newell Brands by the value of the dividends paid out.

Newell Brands 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 Newell Brands 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 Ratio0.41
Earnings Quarterly Growth3.60%
Revenue Growth-6.50%
Payout Ratio54.76%
Enterprise Value To Ebitda10.01
Earnings Growth6.50%
Enterprise Value To Revenue1.32

Newell Brands Current Valuation Indicators

Valuation refers to the process of determining the present value of Newell Brands and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Newell we look at many different elements of the entity such as Newell's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Newell Brands' 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 Newell Brands' 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 Newell Brands, 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 Newell Brands' 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 Newell Brands' worth.
Additionally, see Stocks Correlation. Note that the Newell Brands information on this page should be used as a complementary analysis to other Newell Brands' 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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When running Newell Brands price analysis, check to measure Newell Brands' 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 Newell Brands is operating at the current time. Most of Newell Brands' value examination focuses on studying past and present price action to predict the probability of Newell Brands' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Newell Brands' price. Additionally, you may evaluate how the addition of Newell Brands to your portfolios can decrease your overall portfolio volatility.
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Is Newell Brands' 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 Newell Brands. If investors know Newell 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 Newell Brands 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
0.065
Market Capitalization
8.2 B
Quarterly Revenue Growth YOY
-0.065
Return On Assets
0.0466
Return On Equity
0.18
The market value of Newell Brands is measured differently than its book value, which is the value of Newell that is recorded on the company's balance sheet. Investors also form their own opinion of Newell Brands' value that differs from its market value or its book value, called intrinsic value, which is Newell Brands' 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 Newell Brands' market value can be influenced by many factors that don't directly affect Newell Brands' 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 Newell Brands' value and its price as these two are different measures arrived at by different means. Investors typically determine Newell Brands value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Newell Brands' 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.