Aerovironment Stock Valuation

AVAV
 Stock
  

USD 92.08  1.79  1.98%   

What is the acquisition price tag of Aerovironment? 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 Aerovironment, is its stock price multiplied by the total number of shares outstanding, calculating Aerovironment's enterprise value requires a different approach. It uses Aerovironment's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Tangible Asset Value is likely to climb to about 511.6 M in 2022, whereas Free Cash Flow is likely to drop (32.7 M) in 2022.
Aerovironment shows a prevailing Real Value of $85.31 per share. The current price of the firm is $92.08. At this time, the firm appears to be overvalued. Our model approximates the value of Aerovironment from analyzing the firm fundamentals such as Current Valuation of 2.3 B, profit margin of 0.31 %, and Return On Equity of 0.22 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor buying undervalued instruments and disposing overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
Aerovironment 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 Aerovironment's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Aerovironment Most Recent Valuation Data

Price Book
3.77
Price Sales
5.08
EBITDA
58.3 M
Beta
0.54
Fiscal Year End
April
Industry
Aerospace & Defense
Overvalued
Today 92.08
Please note that Aerovironment's price fluctuation is very steady at this time. Calculation of the real value of Aerovironment is based on 3 months time horizon. Increasing Aerovironment's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Aerovironment is useful when determining the fair value of the Aerovironment stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Aerovironment. Since Aerovironment is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Aerovironment Stock. However, Aerovironment'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.
85.31
Real Value
101.29
Upside
Estimating the potential upside or downside of Aerovironment helps investors to forecast how Aerovironment 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 Aerovironment more accurately as focusing exclusively on Aerovironment's fundamentals will not take into account other important factors:
Earnings
Estimates (2)
LowProjected EPSHigh
1.321.331.34
Details
Hype
Prediction
LowEstimated ValueHigh
88.1891.9295.66
Details
Naive
Forecast
LowNext ValueHigh
90.4894.2397.97
Details
6 Analysts
Consensus
LowTarget PriceHigh
64.0080.25120.00
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 Aerovironment's intrinsic value based on its ongoing forecasts of Aerovironment's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Aerovironment's closest peers. When choosing an evaluation method for Aerovironment, 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.

Aerovironment Investments

41.21 Million

Aerovironment Valuation Drivers Correlation

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

Aerovironment Valuation Trend

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

Aerovironment Market Cap

Aerovironment is rated below average in market capitalization category among related companies. Market capitalization of Aerospace & Defense industry is presently estimated at about 383.57 Billion. Aerovironment maintains roughly 2.24 Billion in market capitalization contributing less than 1% to stocks in Aerospace & Defense industry.
Capitalization  Workforce  Valuation  Total debt  Revenue

Aerovironment Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Aerovironment's current stock value. Our valuation model uses many indicators to compare Aerovironment value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Aerovironment competition to find correlations between indicators driving Aerovironment's intrinsic value. More Info.
Aerovironment is number one stock in price to earning category among related companies. It is rated fifth in price to book category among related companies fabricating about  0.06  of Price to Book per Price to Earning. The ratio of Price to Earning to Price to Book for Aerovironment is roughly  17.76 . Price to Book Value is likely to drop to 3.21 in 2022. Comparative valuation analysis is a catch-all model that can be used if you cannot value Aerovironment by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Aerovironment'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 Aerovironment'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 Aerovironment'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 Aerovironment and how it compares across the competition.

About Aerovironment Valuation

The stock valuation mechanism determines the current worth of Aerovironment on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Aerovironment. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Aerovironment based exclusively on its fundamental and basic technical indicators. By analyzing Aerovironment'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 Aerovironment'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 Aerovironment. We calculate exposure to Aerovironment's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Aerovironment's related companies.
Fiscal Year End
April
Industry
Aerospace & Defense
Concentration
Aerospace & Defense
Full Time Employees
1.2 K
Service Category
Aerospace & Defense
Employer Id Number
95-2705790
Last ReportedProjected for 2022
Gross Profit141.2 M143.7 M
Profit Margin(0.94) (0.96) 

Aerovironment 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 Aerovironment 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 Ratio2.58
Revenue Growth7.40%
Enterprise Value To Ebitda39.40
Enterprise Value To Revenue5.07

Aerovironment Current Valuation Indicators

Valuation refers to the process of determining the present value of Aerovironment and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Aerovironment we look at many different elements of the entity such as Aerovironment's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Aerovironment'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 Aerovironment'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 Aerovironment, 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 Aerovironment'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 Aerovironment's worth.
Please continue to Trending Equities. Note that the Aerovironment information on this page should be used as a complementary analysis to other Aerovironment'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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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When running Aerovironment price analysis, check to measure Aerovironment'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 Aerovironment is operating at the current time. Most of Aerovironment's value examination focuses on studying past and present price action to predict the probability of Aerovironment's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Aerovironment's price. Additionally, you may evaluate how the addition of Aerovironment to your portfolios can decrease your overall portfolio volatility.
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Is Aerovironment'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 Aerovironment. If investors know Aerovironment 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 Aerovironment 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
(0.36) 
Market Capitalization
2.3 B
Quarterly Revenue Growth YOY
0.074
Return On Assets
(0.002) 
Return On Equity
0.0022
The market value of Aerovironment is measured differently than its book value, which is the value of Aerovironment that is recorded on the company's balance sheet. Investors also form their own opinion of Aerovironment's value that differs from its market value or its book value, called intrinsic value, which is Aerovironment'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 Aerovironment's market value can be influenced by many factors that don't directly affect Aerovironment'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 Aerovironment's value and its price as these two are different measures arrived at by different means. Investors typically determine Aerovironment value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Aerovironment'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.