CNH Industrial Stock Valuation

CNHI
 Stock
  

USD 12.47  0.17  1.34%   

Do you want to know what the current value of CNH Industrial NV is 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 CNH Industrial, is its stock price multiplied by the total number of shares outstanding, calculating CNH Industrial's enterprise value requires a different approach. It uses CNH Industrial's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
CNH Industrial Free Cash Flow is most likely to increase significantly in the upcoming years. The last year's value of Free Cash Flow was reported at 2.07 Billion. The current Enterprise Value is estimated to increase to about 49.4 B, while Tangible Asset Value is projected to decrease to roughly 43.4 B.
CNH Industrial NV shows a prevailing Real Value of $15.93 per share. The current price of the firm is $12.47. At this time, the firm appears to be undervalued. Our model approximates the value of CNH Industrial NV from reviewing the firm fundamentals such as Operating Margin of 7.36 %, profit margin of 6.07 %, and Return On Equity of 29.35 % as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we favor locking in undervalued instruments and disposing overvalued instruments since, in the future, asset prices and their ongoing real values will blend.
  
CNH Industrial 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 CNH Industrial's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

CNH Industrial Most Recent Valuation Data

Price Book
2.94
EPS Estimate Next Quarter
0.31
Price Sales
0.49
Forward Annual Dividend Yield
0.0235
EBITDA
3.5 B
Dividend Share
0.32
Ex Dividend Date
2022-04-19
Undervalued
Today 12.47
Please note that CNH Industrial's price fluctuation is not too volatile at this time. Calculation of the real value of CNH Industrial NV is based on 3 months time horizon. Increasing CNH Industrial's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for CNH Industrial NV is useful when determining the fair value of the CNH Industrial stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of CNH Industrial. Since CNH Industrial is currently traded on the exchange, buyers and sellers on that exchange determine the market value of CNH Industrial Stock. However, CNH Industrial'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.
15.93
Real Value
19.13
Upside
Estimating the potential upside or downside of CNH Industrial NV helps investors to forecast how CNH Industrial 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 CNH Industrial more accurately as focusing exclusively on CNH Industrial's fundamentals will not take into account other important factors:
Earnings
Estimates (6)
LowProjected EPSHigh
1.251.321.39
Details
Hype
Prediction
LowEstimated ValueHigh
9.4312.6315.83
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.130.140.14
Details
11 Analysts
Consensus
LowTarget PriceHigh
16.0019.0022.00
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 CNH Industrial's intrinsic value based on its ongoing forecasts of CNH Industrial's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against CNH Industrial's closest peers. When choosing an evaluation method for CNH Industrial NV, 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.

CNH Industrial Investments

16.79 Billion

CNH Industrial Valuation Drivers Correlation

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

CNH Industrial Valuation Trend

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

CNH Industrial Market Cap

CNH Industrial NV is number one stock in market capitalization category among related companies. Market capitalization of Farm & Heavy Construction Machinery industry is currently estimated at about 3.4 Trillion. CNH Industrial adds roughly 17.01 Billion in market capitalization claiming only tiny portion of equities under Farm & Heavy Construction Machinery industry.
Capitalization  Workforce  Revenue  Total debt  Valuation

CNH Industrial Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining CNH Industrial's current stock value. Our valuation model uses many indicators to compare CNH Industrial value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across CNH Industrial competition to find correlations between indicators driving CNH Industrial's intrinsic value. More Info.
CNH Industrial NV is number one stock in price to book category among related companies. It is number one stock in last dividend paid category among related companies creating about  0.11  of Last Dividend Paid per Price to Book. The ratio of Price to Book to Last Dividend Paid for CNH Industrial NV is roughly  9.41 . Comparative valuation analysis is a catch-all model that can be used if you cannot value CNH Industrial by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for CNH Industrial'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 CNH Industrial'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 CNH Industrial'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 CNH Industrial and how it compares across the competition.

About CNH Industrial Valuation

The equity valuation mechanism determines the current worth of CNH Industrial NV on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of CNH Industrial NV. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of CNH Industrial NV based exclusively on its fundamental and basic technical indicators. By analyzing CNH Industrial'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 CNH Industrial'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 CNH Industrial. We calculate exposure to CNH Industrial's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to CNH Industrial's related companies.
Fiscal Year End
December
Industry
Farm & Heavy Construction Machinery
Concentration
Agricultural & Farm Machinery
Full Time Employees
71.9 K
Service Category
Machinery
Last ReportedProjected for 2022
Gross Profit7.5 B6.7 B
Profit Margin 0.05  0.06 
CNH Industrial N.V. designs, produces, markets, sells, and finances agricultural and construction equipment, trucks, commercial vehicles, buses, and specialty vehicles in North America, Europe, South America, and internationally. The company was founded in 1842 and is headquartered in London, the United Kingdom. CNH Industrial operates under Farm Heavy Construction Machinery classification in the United States and is traded on New York Stock Exchange. It employs 71895 people.

CNH Industrial Quarterly Enterprise Value

37.29 Billion

CNH Industrial's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether CNH Industrial's value is low or high relative to the company's performance and growth projections. Determining the market value of CNH Industrial can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of CNH Industrial represents a small ownership stake in the entity. As a stockholder of CNH Industrial, 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.

CNH Industrial Dividends Analysis For Valuation

Please note that CNH Industrial has scaled down on payment of dividends at this time. CNH Industrial Earnings before Tax are most likely to increase significantly in the upcoming years. The last year's value of Earnings before Tax was reported at 2.06 Billion
There are various types of dividends CNH Industrial 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 CNH Industrial 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 CNH Industrial NV directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When CNH Industrial pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of CNH Industrial by the value of the dividends paid out.

CNH Industrial 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 CNH Industrial 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.
Revenue Growth-41.90%
Payout Ratio10.76%
Enterprise Value To Ebitda11.55
Enterprise Value To Revenue1.11

CNH Industrial Current Valuation Indicators

Valuation refers to the process of determining the present value of CNH Industrial NV and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value CNH Industrial we look at many different elements of the entity such as CNH Industrial's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. CNH Industrial'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 CNH Industrial'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 CNH Industrial, 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 CNH Industrial'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 CNH Industrial's worth.
Continue to Trending Equities. Note that the CNH Industrial NV information on this page should be used as a complementary analysis to other CNH Industrial'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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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When running CNH Industrial NV price analysis, check to measure CNH Industrial'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 CNH Industrial is operating at the current time. Most of CNH Industrial's value examination focuses on studying past and present price action to predict the probability of CNH Industrial's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move CNH Industrial's price. Additionally, you may evaluate how the addition of CNH Industrial to your portfolios can decrease your overall portfolio volatility.
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Is CNH Industrial'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 CNH Industrial. If investors know CNH Industrial 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 CNH Industrial 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
-0.21
Market Capitalization
17 B
Quarterly Revenue Growth YOY
0.18
Return On Assets
0.0384
Return On Equity
0.3
The market value of CNH Industrial NV is measured differently than its book value, which is the value of CNH Industrial that is recorded on the company's balance sheet. Investors also form their own opinion of CNH Industrial's value that differs from its market value or its book value, called intrinsic value, which is CNH Industrial'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 CNH Industrial's market value can be influenced by many factors that don't directly affect CNH Industrial'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 CNH Industrial's value and its price as these two are different measures arrived at by different means. Investors typically determine CNH Industrial value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CNH Industrial'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.