Jefferies Stock Valuation

JEF
 Stock
  

USD 29.50  0.40  1.37%   

What is the value of Jefferies Financial 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 Jefferies Financial, is its stock price multiplied by the total number of shares outstanding, calculating Jefferies Financial's enterprise value requires a different approach. It uses Jefferies Financial's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Jefferies Financial retains a regular Real Value of $35.48 per share. The prevalent price of the firm is $29.5. At this time, the firm appears to be undervalued. Our model calculates the value of Jefferies Financial from evaluating the firm fundamentals such as Shares Outstanding of 245.56 M, return on asset of 2.06 %, and Return On Equity of 11.43 % as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage purchasing undervalued assets and exiting overvalued assets since, at some point, asset prices and their ongoing real values will come together.
  
Jefferies Financial 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 Jefferies Financial's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 29.50
Please note that Jefferies Financial's price fluctuation is very steady at this time. Calculation of the real value of Jefferies Financial is based on 3 months time horizon. Increasing Jefferies Financial's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Jefferies Financial Group is useful when determining the fair value of the Jefferies stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Jefferies Financial. Since Jefferies Financial is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Jefferies Stock. However, Jefferies Financial'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.
35.48
Real Value
37.34
Upside
Estimating the potential upside or downside of Jefferies Financial Group helps investors to forecast how Jefferies 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 Jefferies Financial more accurately as focusing exclusively on Jefferies Financial's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
29.2932.4435.59
Details
Hype
Prediction
LowEstimated ValueHigh
27.5229.3831.24
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.620.650.68
Details
3 Analysts
Consensus
LowTarget PriceHigh
40.0047.6757.00
Details

Jefferies Financial Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Jefferies Financial's current stock value. Our valuation model uses many indicators to compare Jefferies Financial value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Jefferies Financial competition to find correlations between indicators driving Jefferies Financial's intrinsic value. More Info.
Jefferies Financial Group is currently regarded as number one stock in price to book category among related companies. It is currently regarded as number one stock in price to sales category among related companies fabricating about  1.43  of Price to Sales per Price to Book. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Jefferies Financial by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Jefferies Financial'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 Jefferies Financial'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 Jefferies Financial'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 Jefferies Financial and how it compares across the competition.

About Jefferies Financial Valuation

The stock valuation mechanism determines the current worth of Jefferies Financial Group on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Jefferies Financial Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Jefferies Financial based exclusively on its fundamental and basic technical indicators. By analyzing Jefferies Financial'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 Jefferies Financial'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 Jefferies Financial. We calculate exposure to Jefferies Financial's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Jefferies Financial's related companies.
Jefferies Financial Group Inc. engages in the investment banking and capital markets, and asset management businesses in the Americas, Europe, the Middle East, Africa, and Asia. The company operates in Investment Banking and Capital Markets, Asset Management, Merchant Banking, and Corporate segments. It provides investment banking, advisory services with respect to mergers or acquisitions, restructurings or recapitalizations and private capital advisory transactions equity and debt underwriting and corporate lending. In addition, the company offers financing, securities lending, and other prime brokerage services equities research and finance and wealth management services. Further, it provides clients with sales and trading of investment grade corporate bonds, U.S. and European government and agency securities, municipal bonds, mortgage-backed and asset-backed securities, leveraged loans, consumer loans, high yield and distressed securities, emerging markets debt, interest rate, and credit derivative products, as well as foreign exchange trade execution and securitization and manages, invests in, and provides services to a diverse group of alternative asset management platforms across a spectrum of investment strategies and asset classes. The company was formerly known as Leucadia National Corporation and changed its name to Jefferies Financial Group Inc. in May 2018. Jefferies Financial Group Inc. was founded in 1962 and is headquartered in New York, New York.
Jefferies Financial's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Jefferies Financial's value is low or high relative to the company's performance and growth projections. Determining the market value of Jefferies Financial can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Jefferies Financial represents a small ownership stake in the entity. As a stockholder of Jefferies, 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.

Jefferies Financial Dividends Analysis For Valuation

There are various types of dividends Jefferies Financial 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 Jefferies 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 Jefferies Financial Group directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Jefferies pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Jefferies Financial by the value of the dividends paid out.

Jefferies Financial 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 Jefferies Financial 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 Ratio1.64
Earnings Quarterly Growth-67.20%
Revenue Growth-29.60%
Payout Ratio25.00%
Earnings Growth-65.30%
Enterprise Value To Revenue-1.00
Please see Risk vs Return Analysis. Note that the Jefferies Financial information on this page should be used as a complementary analysis to other Jefferies Financial'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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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Is Jefferies Financial'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 Jefferies Financial. If investors know Jefferies 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 Jefferies Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Jefferies Financial is measured differently than its book value, which is the value of Jefferies that is recorded on the company's balance sheet. Investors also form their own opinion of Jefferies Financial's value that differs from its market value or its book value, called intrinsic value, which is Jefferies Financial'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 Jefferies Financial's market value can be influenced by many factors that don't directly affect Jefferies Financial'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 Jefferies Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine Jefferies Financial value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Jefferies Financial'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.