RBC Bearings Stock Valuation

ROLL
 Stock
  

USD 243.48  1.74  0.72%   

What is the enterprise value of RBC Bearings? 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 RBC Bearings, is its stock price multiplied by the total number of shares outstanding, calculating RBC Bearings' enterprise value requires a different approach. It uses RBC Bearings' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Enterprise Value is expected to hike to about 882.8 M this year, although the value of Free Cash Flow will most likely fall to nearly 23.8 M.
RBC Bearings Incorp owns a latest Real Value of $253.47 per share. The recent price of the entity is $243.48. At this time, the entity appears to be undervalued. Our model determines the value of RBC Bearings Incorp from evaluating the entity fundamentals such as return on asset of 2.77 %, and Operating Margin of 18.72 % as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we support acquiring undervalued equities and dropping overvalued equities since, in the future, asset prices and their ongoing real values will converge.
  
RBC Bearings 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 RBC Bearings's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

RBC Bearings Most Recent Valuation Data

Price Book
2.81
Enterprise Value
8.5 B
Enterprise Value Ebitda
43.86
Price Sales
6.08
Trailing PE
119.08
Enterprise Value Revenue
9.06
Undervalued
Today 243.48
Please note that RBC Bearings' price fluctuation is very steady at this time. Calculation of the real value of RBC Bearings Incorp is based on 3 months time horizon. Increasing RBC Bearings' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for RBC Bearings Incorp is useful when determining the fair value of the RBC Bearings stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of RBC Bearings. Since RBC Bearings is currently traded on the exchange, buyers and sellers on that exchange determine the market value of RBC Bearings Stock. However, RBC Bearings' 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.
218.69
Downside
253.47
Real Value
256.00
Upside
Estimating the potential upside or downside of RBC Bearings Incorp helps investors to forecast how RBC Bearings 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 RBC Bearings more accurately as focusing exclusively on RBC Bearings' fundamentals will not take into account other important factors:
Earnings
Estimates (3)
LowProjected EPSHigh
3.354.014.60
Details
Hype
Prediction
LowEstimated ValueHigh
238.72241.25243.78
Details
5 Analysts
Consensus
LowTarget PriceHigh
220.00244.33263.00
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 RBC Bearings' intrinsic value based on its ongoing forecasts of RBC Bearings' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against RBC Bearings' closest peers. When choosing an evaluation method for RBC Bearings Incorp, 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.

RBC Bearings Investments

1.53 Million

RBC Bearings Valuation Drivers Correlation

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

RBC Bearings Valuation Trend

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

RBC Bearings Market Cap

RBC Bearings Incorp is rated fourth in market capitalization category among related companies. Market capitalization of Tools & Accessories industry is at this time estimated at about 167.17 Billion. RBC Bearings holds roughly 6.94 Billion in market capitalization claiming about 4% of equities listed under Tools & Accessories industry.
Capitalization  Workforce  Valuation  Revenue  Total debt

RBC Bearings Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining RBC Bearings's current stock value. Our valuation model uses many indicators to compare RBC Bearings value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across RBC Bearings competition to find correlations between indicators driving RBC Bearings's intrinsic value. More Info.
RBC Bearings Incorp is currently regarded as top stock in price to book category among related companies. It is currently regarded as top stock in price to sales category among related companies fabricating about  3.56  of Price to Sales per Price to Book. The value of Price to Sales Ratio is estimated to pull down to 2.24. Comparative valuation analysis is a catch-all model that can be used if you cannot value RBC Bearings by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for RBC Bearings' 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 RBC Bearings' 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 RBC Bearings' 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 RBC Bearings and how it compares across the competition.

About RBC Bearings Valuation

The equity valuation mechanism determines the current worth of RBC Bearings Incorp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of RBC Bearings Incorp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of RBC Bearings Incorp based exclusively on its fundamental and basic technical indicators. By analyzing RBC Bearings'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 RBC Bearings'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 RBC Bearings. We calculate exposure to RBC Bearings's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to RBC Bearings's related companies.
Fiscal Year End
March
Industry
Tools & Accessories
Concentration
Industrial Machinery
Full Time Employees
4.9 K
Service Category
Machinery
Employer Id Number
95-4372080
Last ReportedProjected for 2022
Gross Profit126.5 M117.7 M
Profit Margin 6.90  10.43 
RBC Bearings Incorporated manufactures and markets engineered precision bearings and components in North America, Europe, Asia, and Latin America. RBC Bearings Incorporated was founded in 1919 and is headquartered in Oxford, Connecticut. RBC Bearings operates under Tools Accessories classification in the United States and is traded on NASDAQ Exchange. It employs 3885 people.

RBC Bearings 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 RBC Bearings 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 Ratio1.34
Revenue Growth83.00%
Enterprise Value To Ebitda34.65
Enterprise Value To Revenue8.59

RBC Bearings Current Valuation Indicators

Valuation refers to the process of determining the present value of RBC Bearings Incorp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value RBC Bearings we look at many different elements of the entity such as RBC Bearings's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. RBC Bearings' 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 RBC Bearings' 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 RBC Bearings, 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 RBC Bearings' 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 RBC Bearings' worth.
Additionally, take a look at Your Equity Center. Note that the RBC Bearings Incorp information on this page should be used as a complementary analysis to other RBC Bearings' 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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When running RBC Bearings Incorp price analysis, check to measure RBC Bearings' 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 RBC Bearings is operating at the current time. Most of RBC Bearings' value examination focuses on studying past and present price action to predict the probability of RBC Bearings' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move RBC Bearings' price. Additionally, you may evaluate how the addition of RBC Bearings to your portfolios can decrease your overall portfolio volatility.
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Is RBC Bearings' 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 RBC Bearings. If investors know RBC Bearings 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 RBC Bearings 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
0.058
Market Capitalization
6.9 B
Quarterly Revenue Growth YOY
1.27
Return On Assets
0.035
Return On Equity
0.0361
The market value of RBC Bearings Incorp is measured differently than its book value, which is the value of RBC Bearings that is recorded on the company's balance sheet. Investors also form their own opinion of RBC Bearings' value that differs from its market value or its book value, called intrinsic value, which is RBC Bearings' 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 RBC Bearings' market value can be influenced by many factors that don't directly affect RBC Bearings' 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 RBC Bearings' value and its price as these two are different measures arrived at by different means. Investors typically determine RBC Bearings value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, RBC Bearings' 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.