Burford Stock Valuation

BUR
 Stock
  

USD 9.65  0.10  1.03%   

How much is Burford Capital 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 Burford Capital, is its stock price multiplied by the total number of shares outstanding, calculating Burford Capital's enterprise value requires a different approach. It uses Burford Capital's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
As of 07/06/2022, Enterprise Value is likely to grow to about 3.3 B, while Free Cash Flow is likely to drop (601.1 M).
Burford Capital shows a prevailing Real Value of $11.57 per share. The current price of the firm is $9.65. At this time, the firm appears to be undervalued. Our model approximates the value of Burford Capital from analyzing the firm fundamentals such as Return On Equity of (2.93) %, profit margin of (46.02) %, and Current Valuation of 2.92 B 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.
  
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Burford Capital 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 Burford Capital's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Burford Most Recent Valuation Data

Price Book
1.39
Address
Oak House, Saint Peter Port, Guernsey, GY1 2NP
Price Sales
13.64
Forward Annual Dividend Yield
0.0125
EBITDA
21.5 M
Dividend Share
0.13
Ex Dividend Date
2022-05-26
Undervalued
Today 9.65
Please note that Burford Capital's price fluctuation is not too volatile at this time. Calculation of the real value of Burford Capital is based on 3 months time horizon. Increasing Burford Capital's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Burford Capital is useful when determining the fair value of the Burford stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Burford Capital. Since Burford Capital is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Burford Stock. However, Burford Capital'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.
11.57
Real Value
13.95
Upside
Estimating the potential upside or downside of Burford Capital helps investors to forecast how Burford 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 Burford Capital more accurately as focusing exclusively on Burford Capital's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
8.429.3010.19
Details
Hype
Prediction
LowEstimated ValueHigh
7.369.7412.12
Details
Naive
Forecast
LowNext ValueHigh
8.0210.4012.78
Details
2 Analysts
Consensus
LowTarget PriceHigh
15.0015.8516.70
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 Burford Capital's intrinsic value based on its ongoing forecasts of Burford Capital's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Burford Capital's closest peers. When choosing an evaluation method for Burford Capital, 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.

Burford Capital Investments

217.56 Million

Burford Valuation Drivers Correlation

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

Burford Valuation Trend

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

Burford Capital Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Burford Capital's current stock value. Our valuation model uses many indicators to compare Burford Capital value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Burford Capital competition to find correlations between indicators driving Burford Capital's intrinsic value. More Info.
Burford Capital is rated below average in price to book category among related companies. It is number one stock in price to sales category among related companies fabricating about  10.24  of Price to Sales per Price to Book. As of 07/06/2022, Price to Sales Ratio is likely to drop to 14.12. Comparative valuation analysis is a catch-all model that can be used if you cannot value Burford Capital by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Burford Capital'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 Burford Capital'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 Burford Capital'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 Burford Capital and how it compares across the competition.

About Burford Capital Valuation

The equity valuation mechanism determines the current worth of Burford Capital on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Burford Capital. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Burford Capital based exclusively on its fundamental and basic technical indicators. By analyzing Burford Capital'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 Burford Capital'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 Burford Capital. We calculate exposure to Burford Capital's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Burford Capital's related companies.
Last ReportedProjected for 2022
Gross Profit152.2 M218.4 M
Profit Margin(0.47) (0.49) 
Burford Capital Limited, together with its subsidiaries, provides legal finance products and services. The company was incorporated in 2009 and is based in Saint Peter Port, Guernsey. Burford Capital operates under Asset Management classification in the United States and is traded on New York Stock Exchange. It employs 140 people.

Burford Capital Quarterly Enterprise Value

3.17 Billion

Burford Capital 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 Burford Capital 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 Ratio7.70
Revenue Growth-28.30%
Enterprise Value To Ebitda136.15
Enterprise Value To Revenue18.65

Burford Capital Current Valuation Indicators

Valuation refers to the process of determining the present value of Burford Capital and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Burford we look at many different elements of the entity such as Burford's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Burford Capital'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 Burford Capital'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 Burford Capital, 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 Burford Capital'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 Burford Capital's worth.
Continue to Trending Equities. Note that the Burford Capital information on this page should be used as a complementary analysis to other Burford Capital'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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

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When running Burford Capital price analysis, check to measure Burford Capital'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 Burford Capital is operating at the current time. Most of Burford Capital's value examination focuses on studying past and present price action to predict the probability of Burford Capital's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Burford Capital's price. Additionally, you may evaluate how the addition of Burford Capital to your portfolios can decrease your overall portfolio volatility.
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Is Burford Capital'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 Burford Capital. If investors know Burford 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 Burford Capital 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
-0.31
Market Capitalization
2.1 B
Quarterly Revenue Growth YOY
-0.28
Return On Assets
0.002
Return On Equity
-0.0293
The market value of Burford Capital is measured differently than its book value, which is the value of Burford that is recorded on the company's balance sheet. Investors also form their own opinion of Burford Capital's value that differs from its market value or its book value, called intrinsic value, which is Burford Capital'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 Burford Capital's market value can be influenced by many factors that don't directly affect Burford Capital'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 Burford Capital's value and its price as these two are different measures arrived at by different means. Investors typically determine Burford Capital value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Burford Capital'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.