Cerner Stock Valuation

CERN
 Stock
  

USD 94.92  0.00  0.00%   

What is the current enterprise value of Cerner? 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 Cerner, is its stock price multiplied by the total number of shares outstanding, calculating Cerner's enterprise value requires a different approach. It uses Cerner's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The value of Free Cash Flow is estimated to slide to about 952.4 M. The Enterprise Value is projected to slide to about 26.6 B.
Cerner shows a prevailing Real Value of $84.32 per share. The current price of the firm is $94.92. At this time, the firm appears to be overvalued. Our model approximates the value of Cerner from analyzing the firm fundamentals such as Profit Margin of 9.64 %, current valuation of 28.57 B, and Return On Equity of 13.61 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor picking up undervalued instruments and discarding overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
Cerner 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 Cerner's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Overvalued
Today 94.92
Please note that Cerner's price fluctuation is very steady at this time. Calculation of the real value of Cerner is based on 3 months time horizon. Increasing Cerner's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Cerner is useful when determining the fair value of the Cerner stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Cerner. Since Cerner is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Cerner Stock. However, Cerner'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.
84.32
Real Value
104.41
Upside
Estimating the potential upside or downside of Cerner helps investors to forecast how Cerner 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 Cerner more accurately as focusing exclusively on Cerner's fundamentals will not take into account other important factors:
Earnings
Estimates (9)
LowProjected EPSHigh
2.742.752.78
Details
Hype
Prediction
LowEstimated ValueHigh
94.7694.9295.08
Details
16 Analysts
Consensus
LowTarget PriceHigh
72.0088.3395.00
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 Cerner's intrinsic value based on its ongoing forecasts of Cerner's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Cerner's closest peers. When choosing an evaluation method for Cerner, 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.

Cerner Investments

700.22 Million

Cerner Valuation Drivers Correlation

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

Cerner Valuation Trend

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

Cerner Market Cap

Cerner is number one stock in market capitalization category among related companies. Market capitalization of Health Information Services industry is currently estimated at about 1.98 Trillion. Cerner claims roughly 27.74 Billion in market capitalization contributing just under 2% to equities under Health Information Services industry.
Capitalization  Revenue  Valuation  Total debt  Workforce

Cerner Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Cerner's current stock value. Our valuation model uses many indicators to compare Cerner value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Cerner competition to find correlations between indicators driving Cerner's intrinsic value. More Info.
Cerner is number one stock in beta category among related companies. It is number one stock in price to book category among related companies fabricating about  9.05  of Price to Book per Beta. The Price to Book Value is projected to slide to 6.91. Comparative valuation analysis is a catch-all model that can be used if you cannot value Cerner by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Cerner'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 Cerner'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 Cerner'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 Cerner and how it compares across the competition.

About Cerner Valuation

The equity valuation mechanism determines the current worth of Cerner on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Cerner. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Cerner based exclusively on its fundamental and basic technical indicators. By analyzing Cerner'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 Cerner'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 Cerner. We calculate exposure to Cerner's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Cerner's related companies.
Last ReportedProjected for 2022
Gross Profit4.8 B4.6 B
Profit Margin 0.1  0.10 
Cerner Corporation, together with its subsidiaries, provides health care information technology solutions and tech-enabled services in the United States and internationally. The company was founded in 1979 and is headquartered in North Kansas City, Missouri. Cerner operates under Health Information Services classification in the United States and is traded on NASDAQ Exchange. It employs 25150 people.

Cerner Quarterly Enterprise Value

28.69 Billion

Cerner 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 Cerner 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 Ratio1.23
Earnings Quarterly Growth23.60%
Revenue Growth4.10%
Payout Ratio49.49%
Enterprise Value To Ebitda18.49
Earnings Growth31.70%
Enterprise Value To Revenue4.96

Cerner Current Valuation Indicators

Valuation refers to the process of determining the present value of Cerner and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Cerner we look at many different elements of the entity such as Cerner's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Cerner'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 Cerner'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 Cerner, 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 Cerner'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 Cerner's worth.
Continue to Trending Equities. Note that the Cerner information on this page should be used as a complementary analysis to other Cerner'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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

Other Tools for Cerner Stock

When running Cerner price analysis, check to measure Cerner'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 Cerner is operating at the current time. Most of Cerner's value examination focuses on studying past and present price action to predict the probability of Cerner's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Cerner's price. Additionally, you may evaluate how the addition of Cerner to your portfolios can decrease your overall portfolio volatility.
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