Simulations Stock Valuation

SLP
 Stock
  

USD 49.81  1.27  2.62%   

What is the intrinsic value of Simulations stock? 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 Simulations Plus, is its stock price multiplied by the total number of shares outstanding, calculating Simulations Plus' enterprise value requires a different approach. It uses Simulations Plus' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Simulations Plus has a current Real Value of $51.5 per share. The regular price of the company is $49.81. At this time, the company appears to be fairly valued. Our model measures the value of Simulations Plus from inspecting the company fundamentals such as Return On Equity of 6.90 %, operating margin of 32.12 %, and Shares Outstanding of 20.17 M as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend obtaining undervalued stocks and abandoning overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
  
Simulations Plus 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 Simulations Plus's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Fairly Valued
Today 49.81
Please note that Simulations Plus' price fluctuation is very steady at this time. Calculation of the real value of Simulations Plus is based on 3 months time horizon. Increasing Simulations Plus' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Simulations Plus is useful when determining the fair value of the Simulations stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Simulations Plus. Since Simulations Plus is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Simulations Stock. However, Simulations Plus' 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.
51.50
Real Value
53.97
Upside
Estimating the potential upside or downside of Simulations Plus helps investors to forecast how Simulations 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 Simulations Plus more accurately as focusing exclusively on Simulations Plus' fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
45.7856.2566.72
Details
Hype
Prediction
LowEstimated ValueHigh
47.3449.8152.28
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.160.160.16
Details
3 Analysts
Consensus
LowTarget PriceHigh
53.0060.6775.00
Details

Simulations Plus Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Simulations Plus's current stock value. Our valuation model uses many indicators to compare Simulations Plus value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Simulations Plus competition to find correlations between indicators driving Simulations Plus's intrinsic value. More Info.
Simulations Plus is currently regarded as top stock in beta category among related companies. It is currently regarded as top stock in five year return category among related companies reporting about  2.72  of Five Year Return per Beta. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Simulations Plus by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Simulations Plus' 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 Simulations Plus' 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 Simulations Plus' 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 Simulations Plus and how it compares across the competition.

About Simulations Plus Valuation

The stock valuation mechanism determines the current worth of Simulations Plus on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Simulations Plus. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Simulations Plus based exclusively on its fundamental and basic technical indicators. By analyzing Simulations Plus'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 Simulations Plus'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 Simulations Plus. We calculate exposure to Simulations Plus's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Simulations Plus's related companies.
Simulations Plus, Inc. develops drug discovery and development software for modeling and simulation, and prediction of molecular properties utilizing artificial intelligence and machine learning based technology worldwide. Simulations Plus, Inc. was incorporated in 1996 and is headquartered in Lancaster, California. Simulations Plus operates under Health Information Services classification in the United States and is traded on NASDAQ Exchange. It employs 135 people.
Simulations Plus' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Simulations Plus' value is low or high relative to the company's performance and growth projections. Determining the market value of Simulations Plus can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Simulations Plus represents a small ownership stake in the entity. As a stockholder of Simulations, 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.

Simulations Plus Dividends Analysis For Valuation

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

Simulations Plus 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 Simulations Plus 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 Ratio24.15
Earnings Quarterly Growth7.90%
Revenue Growth17.10%
Payout Ratio42.11%
Enterprise Value To Ebitda70.47
Earnings Growth11.10%
Enterprise Value To Revenue22.63
Additionally, take a look at World Market Map. You can also try Probability Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

Complementary Tools for analysis

When running Simulations Plus price analysis, check to measure Simulations Plus' 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 Simulations Plus is operating at the current time. Most of Simulations Plus' value examination focuses on studying past and present price action to predict the probability of Simulations Plus' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Simulations Plus' price. Additionally, you may evaluate how the addition of Simulations Plus to your portfolios can decrease your overall portfolio volatility.
Transaction History
View history of all your transactions and understand their impact on performance
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Is Simulations Plus' 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 Simulations Plus. If investors know Simulations 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 Simulations Plus 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 Simulations Plus is measured differently than its book value, which is the value of Simulations that is recorded on the company's balance sheet. Investors also form their own opinion of Simulations Plus' value that differs from its market value or its book value, called intrinsic value, which is Simulations Plus' 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 Simulations Plus' market value can be influenced by many factors that don't directly affect Simulations Plus' 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 Simulations Plus' value and its price as these two are different measures arrived at by different means. Investors typically determine Simulations Plus value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Simulations Plus' 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.