Stem Stock Valuation

STEM
 Stock
  

USD 7.16  0.15  2.14%   

What is the enterprise value of Stem? 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 Stem, is its stock price multiplied by the total number of shares outstanding, calculating Stem's enterprise value requires a different approach. It uses Stem's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Stem Enterprise Value is relatively stable at the moment as compared to the past year. The company's current Enterprise Value is estimated at 42.4 Million. Tangible Asset Value is expected to hike to about 34.1 M this year, although the value of Free Cash Flow will most likely fall to (39.2 M).
Stem Inc has a current Real Value of $14.37 per share. The regular price of the company is $7.16. At this time, the company appears to be undervalued. Our model measures the value of Stem Inc from inspecting the company fundamentals such as Shares Outstanding of 144.49 M, operating margin of (61.61) %, and Return On Equity of (34.56) % as well as reviewing 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 draw towards each other.
  
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Stem 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 Stem's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Stem Most Recent Valuation Data

Price Book
1.92
Enterprise Value
1.3 B
Enterprise Value Ebitda
-95.23
Price Sales
7.21
Enterprise Value Revenue
8.62
Undervalued
Today 7.16
Please note that Stem's price fluctuation is slightly risky at this time. Calculation of the real value of Stem Inc is based on 3 months time horizon. Increasing Stem's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Stem Inc is useful when determining the fair value of the Stem stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Stem. Since Stem is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Stem Stock. However, Stem'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.
14.37
Real Value
21.61
Upside
Estimating the potential upside or downside of Stem Inc helps investors to forecast how Stem 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 Stem more accurately as focusing exclusively on Stem's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
6.207.999.77
Details
Hype
Prediction
LowEstimated ValueHigh
0.207.4414.68
Details
Naive
Forecast
LowNext ValueHigh
0.317.5514.79
Details
1 Analysts
Consensus
LowTarget PriceHigh
35.0035.0035.00
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 Stem's intrinsic value based on its ongoing forecasts of Stem's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Stem's closest peers. When choosing an evaluation method for Stem Inc, 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.

Stem Investments

13.04 Million

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Stem Valuation Drivers Correlation

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

Stem Valuation Trend

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

Stem Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Stem's current stock value. Our valuation model uses many indicators to compare Stem value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Stem competition to find correlations between indicators driving Stem's intrinsic value. More Info.
Stem Inc is rated fifth in beta category among related companies. It is currently regarded as top stock in price to sales category among related companies . Price to Sales Ratio is expected to hike to 589.38 this year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Stem by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Stem'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 Stem'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 Stem'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 Stem and how it compares across the competition.

About Stem Valuation

The equity valuation mechanism determines the current worth of Stem Inc on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Stem Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Stem Inc based exclusively on its fundamental and basic technical indicators. By analyzing Stem'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 Stem'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 Stem. We calculate exposure to Stem's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Stem's related companies.
Last ReportedProjected for 2022
Gross Profit105.2 K108 K
Profit Margin 3.63  3.45 
Stem, Inc. operates as a digitally connected and intelligent energy storage network provider in the United States and internationally. Stem, Inc. was incorporated in 2009 and is headquartered in San Francisco, California. Stem operates under SoftwareInfrastructure classification in the United States and is traded on New York Stock Exchange. It employs 213 people.

Stem 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 Stem 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 Ratio11.17
Revenue Growth183.10%
Enterprise Value To Ebitda-10.15
Enterprise Value To Revenue4.71

Stem Current Valuation Indicators

Valuation refers to the process of determining the present value of Stem Inc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Stem we look at many different elements of the entity such as Stem's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Stem'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 Stem'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 Stem, 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 Stem'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 Stem's worth.
Additionally, take a look at World Market Map. Note that the Stem Inc information on this page should be used as a complementary analysis to other Stem'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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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When running Stem Inc price analysis, check to measure Stem'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 Stem is operating at the current time. Most of Stem's value examination focuses on studying past and present price action to predict the probability of Stem's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Stem's price. Additionally, you may evaluate how the addition of Stem to your portfolios can decrease your overall portfolio volatility.
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Is Stem'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 Stem. If investors know Stem 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 Stem listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
1.1 B
Quarterly Revenue Growth YOY
1.67
Return On Assets
-0.0747
Return On Equity
-0.15
The market value of Stem Inc is measured differently than its book value, which is the value of Stem that is recorded on the company's balance sheet. Investors also form their own opinion of Stem's value that differs from its market value or its book value, called intrinsic value, which is Stem'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 Stem's market value can be influenced by many factors that don't directly affect Stem'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 Stem's value and its price as these two are different measures arrived at by different means. Investors typically determine Stem value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Stem'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.