Photronics Stock Valuation

PLAB
 Stock
  

USD 14.88  0.25  1.71%   

Do you wonder what the value of Photronics 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 Photronics, is its stock price multiplied by the total number of shares outstanding, calculating Photronics' enterprise value requires a different approach. It uses Photronics' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Photronics holds a recent Real Value of $17.63 per share. The prevailing price of the company is $14.88. At this time, the company appears to be undervalued. Our model determines the value of Photronics from analyzing the company fundamentals such as Return On Equity of 12.52 %, shares outstanding of 60.9 M, and Operating Margin of 30.92 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support taking in undervalued entities and trading overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
  
Photronics 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 Photronics'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 14.88
Please note that Photronics' price fluctuation is somewhat reliable at this time. Calculation of the real value of Photronics is based on 3 months time horizon. Increasing Photronics' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Photronics is useful when determining the fair value of the Photronics stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Photronics. Since Photronics is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Photronics Stock. However, Photronics' 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.
17.63
Real Value
22.24
Upside
Estimating the potential upside or downside of Photronics helps investors to forecast how Photronics 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 Photronics more accurately as focusing exclusively on Photronics' fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
11.1616.4221.68
Details
Hype
Prediction
LowEstimated ValueHigh
10.0114.6219.23
Details
Naive
Forecast
LowNext ValueHigh
11.3615.9720.58
Details
3 Analysts
Consensus
LowTarget PriceHigh
16.0020.6724.00
Details

Photronics Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Photronics's current stock value. Our valuation model uses many indicators to compare Photronics value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Photronics competition to find correlations between indicators driving Photronics's intrinsic value. More Info.
Photronics is considered to be number one stock in price to book category among related companies. It is considered to be number one stock in price to earning category among related companies reporting about  26.69  of Price to Earning per Price to Book. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Photronics by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Photronics' 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 Photronics' 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 Photronics' 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 Photronics and how it compares across the competition.

About Photronics Valuation

The stock valuation mechanism determines the current worth of Photronics on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Photronics. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Photronics based exclusively on its fundamental and basic technical indicators. By analyzing Photronics'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 Photronics'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 Photronics. We calculate exposure to Photronics's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Photronics's related companies.
Photronics, Inc., together with its subsidiaries, engages in the manufacture and sale of photomask products and services in the United States, Taiwan, Korea, Europe, China, and internationally. Photronics, Inc. was incorporated in 1969 and is based in Brookfield, Connecticut. Photronics operates under Semiconductor Equipment Materials classification in the United States and is traded on NASDAQ Exchange. It employs 1728 people.

Photronics 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 Photronics 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 Ratio2.86
Earnings Quarterly Growth160.60%
Revenue Growth28.00%
Enterprise Value To Ebitda6.24
Earnings Growth165.30%
Enterprise Value To Revenue1.93
Please check Your Equity Center. Note that the Photronics information on this page should be used as a complementary analysis to other Photronics' 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

Complementary Tools for Photronics Stock analysis

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