Armour Stock Valuation

ARR
 Stock
  

USD 4.87  0.06  1.25%   

How much is Armour Residential R worth today? 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 Armour Residential, is its stock price multiplied by the total number of shares outstanding, calculating Armour Residential's enterprise value requires a different approach. It uses Armour Residential's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Armour Residential shows a prevailing Real Value of $6.59 per share. The current price of the firm is $4.87. At this time, the firm appears to be undervalued. Our model approximates the value of Armour Residential from analyzing the firm fundamentals such as Return On Equity of (10.75) %, shares owned by insiders of 1.09 %, and Current Valuation of 183.69 M as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor buying undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
Armour Residential 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 Armour Residential's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 4.87
Please note that Armour Residential's price fluctuation is somewhat reliable at this time. Calculation of the real value of Armour Residential is based on 3 months time horizon. Increasing Armour Residential's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Armour Residential R is useful when determining the fair value of the Armour stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Armour Residential. Since Armour Residential is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Armour Stock. However, Armour Residential'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.
6.59
Real Value
9.17
Upside
Estimating the potential upside or downside of Armour Residential R helps investors to forecast how Armour 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 Armour Residential more accurately as focusing exclusively on Armour Residential's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
4.996.688.36
Details
Hype
Prediction
LowEstimated ValueHigh
2.234.817.39
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.460.801.14
Details
2 Analysts
Consensus
LowTarget PriceHigh
11.0011.0011.00
Details

Armour Residential Valuation Ratios as Compared to Competition

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

About Armour Residential Valuation

The stock valuation mechanism determines the current worth of Armour Residential R on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Armour Residential R. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Armour Residential based exclusively on its fundamental and basic technical indicators. By analyzing Armour Residential'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 Armour Residential'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 Armour Residential. We calculate exposure to Armour Residential's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Armour Residential's related companies.
ARMOUR Residential REIT, Inc. invests in residential mortgage-backed securities in the United States. ARMOUR Residential REIT, Inc. was incorporated in 2008 and is based in Vero Beach, Florida. Armour Residential operates under REITMortgage classification in the United States and is traded on New York Stock Exchange.
Armour Residential's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Armour Residential's value is low or high relative to the company's performance and growth projections. Determining the market value of Armour Residential can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Armour Residential represents a small ownership stake in the entity. As a stockholder of Armour, 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.

Armour Residential Dividends Analysis For Valuation

There are various types of dividends Armour Residential 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 Armour 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 Armour Residential R directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Armour pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Armour Residential by the value of the dividends paid out.

Armour Residential 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 Armour Residential 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 Ratio1.06
Enterprise Value To Revenue-2.45
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Is Armour Residential'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 Armour Residential. If investors know Armour 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 Armour Residential listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Armour Residential is measured differently than its book value, which is the value of Armour that is recorded on the company's balance sheet. Investors also form their own opinion of Armour Residential's value that differs from its market value or its book value, called intrinsic value, which is Armour Residential'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 Armour Residential's market value can be influenced by many factors that don't directly affect Armour Residential'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 Armour Residential's value and its price as these two are different measures arrived at by different means. Investors typically determine Armour Residential value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Armour Residential'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.