Avnet Stock Valuation

AVT
 Stock
  

USD 45.14  0.07  0.15%   

What would the acquisition value of Avnet Inc be 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 Avnet, is its stock price multiplied by the total number of shares outstanding, calculating Avnet's enterprise value requires a different approach. It uses Avnet's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Enterprise Value is likely to gain to about 6.2 B in 2022, despite the fact that Free Cash Flow is likely to grow to (89.8 M).
Avnet Inc shows a prevailing Real Value of $44.56 per share. The current price of the firm is $45.14. At this time, the firm appears to be fairly valued. Our model approximates the value of Avnet Inc from analyzing the firm fundamentals such as Current Valuation of 6.22 B, return on equity of 18.75 %, and Profit Margin of 3.00 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor acquiring undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
Avnet 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 Avnet's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Avnet Most Recent Valuation Data

Price Book
1.03
EPS Estimate Next Quarter
1.82
Price Sales
0.16
Forward Annual Dividend Yield
0.0257
EBITDA
1.2 B
Dividend Share
1.05
Fairly Valued
Today 45.14
Please note that Avnet's price fluctuation is very steady at this time. Calculation of the real value of Avnet Inc is based on 3 months time horizon. Increasing Avnet's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Avnet Inc is useful when determining the fair value of the Avnet stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Avnet. Since Avnet is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Avnet Stock. However, Avnet'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.
44.56
Real Value
46.62
Upside
Estimating the potential upside or downside of Avnet Inc helps investors to forecast how Avnet 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 Avnet more accurately as focusing exclusively on Avnet's fundamentals will not take into account other important factors:
Earnings
Estimates (4)
LowProjected EPSHigh
4.784.874.90
Details
Hype
Prediction
LowEstimated ValueHigh
43.0745.1347.19
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.620.640.66
Details
5 Analysts
Consensus
LowTarget PriceHigh
43.0047.2053.00
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 Avnet's intrinsic value based on its ongoing forecasts of Avnet's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Avnet's closest peers. When choosing an evaluation method for Avnet 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.

Avnet Valuation Drivers Correlation

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

Avnet Valuation Trend

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

Avnet Market Cap

Avnet Inc is number one stock in market capitalization category among related companies. Market capitalization of Electronics & Computer Distribution industry is presently estimated at about 1.06 Trillion. Avnet adds roughly 3.73 Billion in market capitalization claiming only tiny portion of equities under Electronics & Computer Distribution industry.
Capitalization  Revenue  Workforce  Valuation  Total debt

Avnet Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Avnet's current stock value. Our valuation model uses many indicators to compare Avnet value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Avnet competition to find correlations between indicators driving Avnet's intrinsic value. More Info.
Avnet Inc is number one stock in five year return category among related companies. It is number one stock in price to book category among related companies fabricating about  0.43  of Price to Book per Five Year Return. The ratio of Five Year Return to Price to Book for Avnet Inc is roughly  2.32 . Price to Book Value is likely to gain to 1.09 in 2022. Comparative valuation analysis is a catch-all model that can be used if you cannot value Avnet by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Avnet'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 Avnet'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 Avnet'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 Avnet and how it compares across the competition.

About Avnet Valuation

The stock valuation mechanism determines the current worth of Avnet Inc on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Avnet Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Avnet Inc based exclusively on its fundamental and basic technical indicators. By analyzing Avnet'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 Avnet'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 Avnet. We calculate exposure to Avnet's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Avnet's related companies.
Fiscal Year End
June
Industry
Electronics & Computer Distribution
Concentration
Technology Distributors
Full Time Employees
15.3 K
Service Category
Electronic Equipment, Instruments & Components
Employer Id Number
11-1890605
Last ReportedProjected for 2022
Gross ProfitB2.9 B
Profit Margin 2.85  1.07 
Avnet's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Avnet's value is low or high relative to the company's performance and growth projections. Determining the market value of Avnet can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Avnet represents a small ownership stake in the entity. As a stockholder of Avnet, 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.

Avnet Dividends Analysis For Valuation

Payment of Dividends and Other Cash Distributions is likely to gain to about (98.3 M) in 2022. Dividend Yield is likely to drop to 0.0216 in 2022. Accumulated Retained Earnings Deficit is likely to gain to about 3.2 B in 2022, whereas Earning Before Interest and Taxes EBIT is likely to drop slightly above 609.5 M in 2022.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-98.5 M-98.3 M
Dividend Yield 0.024  0.0216 
Dividends per Basic Common Share 1.00  0.92 
There are various types of dividends Avnet 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 Avnet 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 Avnet Inc directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Avnet pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Avnet by the value of the dividends paid out.

Avnet 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 Avnet 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 Ratio1.00
Earnings Quarterly Growth65.50%
Revenue Growth20.90%
Payout Ratio14.41%
Enterprise Value To Ebitda5.18
Earnings Growth75.50%
Enterprise Value To Revenue0.24

Avnet Current Valuation Indicators

Valuation refers to the process of determining the present value of Avnet Inc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Avnet we look at many different elements of the entity such as Avnet's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Avnet'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 Avnet'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 Avnet, 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 Avnet'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 Avnet's worth.
Please continue to Trending Equities. You can also try Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

Complementary Tools for analysis

When running Avnet Inc price analysis, check to measure Avnet'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 Avnet is operating at the current time. Most of Avnet's value examination focuses on studying past and present price action to predict the probability of Avnet's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Avnet's price. Additionally, you may evaluate how the addition of Avnet to your portfolios can decrease your overall portfolio volatility.
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Is Avnet'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 Avnet. If investors know Avnet 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 Avnet 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
0.76
Market Capitalization
4.1 B
Quarterly Revenue Growth YOY
0.21
Return On Assets
0.0685
Return On Equity
0.19
The market value of Avnet Inc is measured differently than its book value, which is the value of Avnet that is recorded on the company's balance sheet. Investors also form their own opinion of Avnet's value that differs from its market value or its book value, called intrinsic value, which is Avnet'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 Avnet's market value can be influenced by many factors that don't directly affect Avnet'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 Avnet's value and its price as these two are different measures arrived at by different means. Investors typically determine Avnet value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Avnet'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.