Luna Innovations Stock Valuation

LUNA
 Stock
  

USD 6.20  0.17  2.67%   

Do you wonder what the value of Luna Innovations is? 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 Luna Innovations, is its stock price multiplied by the total number of shares outstanding, calculating Luna Innovations' enterprise value requires a different approach. It uses Luna Innovations' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Luna Innovations Free Cash Flow is projected to increase significantly based on the last few years of reporting. The past year's Free Cash Flow was at 3.07 Million. The current year Enterprise Value is expected to grow to about 300 M, whereas Tangible Asset Value is forecasted to decline to about 79.8 M.
Luna Innovations secures a last-minute Real Value of $7.84 per share. The latest price of the firm is $6.2. At this time, the firm appears to be undervalued. Our model forecasts the value of Luna Innovations from analyzing the firm fundamentals such as Return On Equity of (1.63) %, profit margin of 12.68 %, and Current Valuation of 227.42 M as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend taking in undervalued stocks and trading overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
  
Luna Innovations 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 Luna Innovations's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Luna Innovations Most Recent Valuation Data

Price Book
2.3
Enterprise Value
230.6 M
Enterprise Value Ebitda
193.63
Price Sales
2.18
Trailing PE
17.51
Enterprise Value Revenue
2.47
Undervalued
Today 6.20
Please note that Luna Innovations' price fluctuation is slightly risky at this time. Calculation of the real value of Luna Innovations is based on 3 months time horizon. Increasing Luna Innovations' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Luna Innovations is useful when determining the fair value of the Luna Innovations stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Luna Innovations. Since Luna Innovations is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Luna Innovations Stock. However, Luna Innovations' 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.
7.84
Real Value
11.68
Upside
Estimating the potential upside or downside of Luna Innovations helps investors to forecast how Luna Innovations 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 Luna Innovations more accurately as focusing exclusively on Luna Innovations' fundamentals will not take into account other important factors:
Earnings
Estimates (2)
LowProjected EPSHigh
0.040.060.08
Details
Hype
Prediction
LowEstimated ValueHigh
2.386.2210.06
Details
Naive
Forecast
LowNext ValueHigh
2.556.3910.23
Details
2 Analysts
Consensus
LowTarget PriceHigh
9.0010.5012.00
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 Luna Innovations' intrinsic value based on its ongoing forecasts of Luna Innovations' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Luna Innovations' closest peers. When choosing an evaluation method for Luna Innovations, 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.

Luna Innovations Valuation Drivers Correlation

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

Luna Innovations Valuation Trend

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

Luna Innovations Market Cap

Luna Innovations is rated below average in market capitalization category among related companies. Market capitalization of Scientific & Technical Instruments industry is now estimated at about 66.13 Billion. Luna Innovations adds roughly 200.76 Million in market capitalization claiming only tiny portion of equities listed under Scientific & Technical Instruments industry.
Capitalization  Workforce  Total debt  Revenue  Valuation

Luna Innovations Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Luna Innovations's current stock value. Our valuation model uses many indicators to compare Luna Innovations value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Luna Innovations competition to find correlations between indicators driving Luna Innovations's intrinsic value. More Info.
Luna Innovations is currently regarded as number one stock in beta category among related companies. It is currently regarded as number one stock in price to book category among related companies fabricating about  2.07  of Price to Book per Beta. As of August 18, 2022, Price to Book Value is expected to decline to 2.90. Comparative valuation analysis is a catch-all model that can be used if you cannot value Luna Innovations by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Luna Innovations' 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 Luna Innovations' 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 Luna Innovations' 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 Luna Innovations and how it compares across the competition.

About Luna Innovations Valuation

The stock valuation mechanism determines the current worth of Luna Innovations on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Luna Innovations. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Luna Innovations based exclusively on its fundamental and basic technical indicators. By analyzing Luna Innovations'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 Luna Innovations'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 Luna Innovations. We calculate exposure to Luna Innovations's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Luna Innovations's related companies.
Fiscal Year End
December
Industry
Scientific & Technical Instruments
Concentration
Electronic Equipment & Instruments
Full Time Employees
385.0
Service Category
Electronic Equipment, Instruments & Components
Employer Id Number
54-1560050
Last ReportedProjected for 2022
Gross Profit51.6 M55.6 M
Profit Margin 0.016  0.0164 
Luna Innovations Incorporated develops, manufactures, and markets fiber optic test, measurement, and control products worldwide. Luna Innovations Incorporated was incorporated in 1990 and is headquartered in Roanoke, Virginia. Luna Innovations operates under Scientific Technical Instruments classification in the United States and is traded on NASDAQ Exchange. It employs 385 people.

Luna Innovations Quarterly Enterprise Value

206.49 Million

Luna Innovations 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 Luna Innovations 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 Ratio1.37
Revenue Growth7.10%
Enterprise Value To Ebitda188.26
Enterprise Value To Revenue2.56

Luna Innovations Current Valuation Indicators

Valuation refers to the process of determining the present value of Luna Innovations and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Luna Innovations we look at many different elements of the entity such as Luna Innovations's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Luna Innovations' 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 Luna Innovations' 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 Luna Innovations, 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 Luna Innovations' 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 Luna Innovations' worth.
Additionally, see Stocks Correlation. Note that the Luna Innovations information on this page should be used as a complementary analysis to other Luna Innovations' 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

Complementary Tools for Luna Innovations Stock analysis

When running Luna Innovations price analysis, check to measure Luna Innovations' 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 Luna Innovations is operating at the current time. Most of Luna Innovations' value examination focuses on studying past and present price action to predict the probability of Luna Innovations' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Luna Innovations' price. Additionally, you may evaluate how the addition of Luna Innovations to your portfolios can decrease your overall portfolio volatility.
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Is Luna Innovations' 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 Luna Innovations. If investors know Luna Innovations 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 Luna Innovations 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
-0.88
Market Capitalization
203.4 M
Quarterly Revenue Growth YOY
0.19
Return On Assets
-0.0175
Return On Equity
-0.0379
The market value of Luna Innovations is measured differently than its book value, which is the value of Luna Innovations that is recorded on the company's balance sheet. Investors also form their own opinion of Luna Innovations' value that differs from its market value or its book value, called intrinsic value, which is Luna Innovations' 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 Luna Innovations' market value can be influenced by many factors that don't directly affect Luna Innovations' 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 Luna Innovations' value and its price as these two are different measures arrived at by different means. Investors typically determine Luna Innovations value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Luna Innovations' 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.