SLM Corp Stock Valuation

SLM
 Stock
  

USD 15.57  0.93  6.35%   

What is the enterprise value of SLM Corp? 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 SLM Corp, is its stock price multiplied by the total number of shares outstanding, calculating SLM Corp's enterprise value requires a different approach. It uses SLM Corp's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
SLM Corp has a current Real Value of $16.87 per share. The regular price of the company is $15.57. At this time, the company appears to be undervalued. Our model measures the value of SLM Corp from examining the company fundamentals such as return on equity of 39.72 %, and Shares Owned by Insiders of 0.73 % as well as evaluating its technical indicators and Probability Of Bankruptcy. In general, we recommend acquiring undervalued stocks and dropping overvalued stocks since, at some point future time, asset prices and their ongoing real values will draw towards each other.
  
SLM Corp 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 SLM Corp'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 15.57
Please note that SLM Corp's price fluctuation is not too volatile at this time. Calculation of the real value of SLM Corp is based on 3 months time horizon. Increasing SLM Corp's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for SLM Corp is useful when determining the fair value of the SLM Corp stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of SLM Corp. Since SLM Corp is currently traded on the exchange, buyers and sellers on that exchange determine the market value of SLM Corp Stock. However, SLM Corp'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.
16.87
Real Value
19.44
Upside
Estimating the potential upside or downside of SLM Corp helps investors to forecast how SLM Corp 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 SLM Corp more accurately as focusing exclusively on SLM Corp's fundamentals will not take into account other important factors:
Hype
Prediction
LowEstimated ValueHigh
12.0714.6417.21
Details
4 Analysts
Consensus
LowTarget PriceHigh
21.0023.1024.50
Details

SLM Corp Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining SLM Corp's current stock value. Our valuation model uses many indicators to compare SLM Corp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across SLM Corp competition to find correlations between indicators driving SLM Corp's intrinsic value. More Info.
SLM Corp is rated second in price to book category among related companies. It is rated second in price to earning category among related companies reporting about  2.34  of Price to Earning per Price to Book. . Comparative valuation analysis is a catch-all model that can be used if you cannot value SLM Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for SLM Corp'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 SLM Corp'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 SLM Corp'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 SLM Corp and how it compares across the competition.

About SLM Corp Valuation

The stock valuation mechanism determines the current worth of SLM Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of SLM Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of SLM Corp based exclusively on its fundamental and basic technical indicators. By analyzing SLM Corp'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 SLM Corp'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 SLM Corp. We calculate exposure to SLM Corp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to SLM Corp's related companies.
SLM Corporation, through its subsidiaries, originates and services private education loans to students and their families to finance the cost of their education in the United States. SLM Corporation was founded in 1972 and is headquartered in Newark, Delaware. SLM Corp operates under Credit Services classification in the United States and is traded on NASDAQ Exchange. It employs 1450 people.
SLM Corp's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether SLM Corp's value is low or high relative to the company's performance and growth projections. Determining the market value of SLM Corp can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of SLM Corp represents a small ownership stake in the entity. As a stockholder of SLM Corp, 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.

SLM Corp Dividends Analysis For Valuation

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

SLM Corp 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 SLM Corp 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 Ratio1.22
Earnings Quarterly Growth144.00%
Revenue Growth83.70%
Payout Ratio11.80%
Earnings Growth193.20%
Enterprise Value To Revenue3.44
Additionally, take a look at World Market Map. You can also try Bond Directory module to find actively traded corporate debentures issued by US companies.

Complementary Tools for analysis

When running SLM Corp price analysis, check to measure SLM Corp'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 SLM Corp is operating at the current time. Most of SLM Corp's value examination focuses on studying past and present price action to predict the probability of SLM Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move SLM Corp's price. Additionally, you may evaluate how the addition of SLM Corp to your portfolios can decrease your overall portfolio volatility.
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Is SLM Corp'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 SLM Corp. If investors know SLM Corp 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 SLM Corp 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 SLM Corp is measured differently than its book value, which is the value of SLM Corp that is recorded on the company's balance sheet. Investors also form their own opinion of SLM Corp's value that differs from its market value or its book value, called intrinsic value, which is SLM Corp'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 SLM Corp's market value can be influenced by many factors that don't directly affect SLM Corp'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 SLM Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine SLM Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SLM Corp'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.