Direct Line Insurance Stock Current Valuation
| DLG Stock | 159.00 0.80 0.51% |
Valuation analysis of Direct Line Insurance helps investors to measure Direct Line's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. At present, Direct Line's Free Cash Flow is projected to increase significantly based on the last few years of reporting. The current year's Other Non Cash Items is expected to grow to about 323.3 M, whereas Cash And Short Term Investments are forecasted to decline to about 1.7 B. Fundamental drivers impacting Direct Line's valuation include:
Price Book 0.8603 | Enterprise Value 1.1 B | Price Sales 0.6117 | Forward PE 7.6805 | Trailing PE 6.913 |
Overvalued
Today
Please note that Direct Line's price fluctuation is very steady at this time. Calculation of the real value of Direct Line Insurance is based on 3 months time horizon. Increasing Direct Line's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Direct stock is determined by what a typical buyer is willing to pay for full or partial control of Direct Line Insurance. Since Direct Line is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Direct Stock. However, Direct Line'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. | Historical | Market 159.0 | Real 133.56 | Hype 158.43 | Naive 158.93 |
The real value of Direct Stock, also known as its intrinsic value, is the underlying worth of Direct Line Insurance Company, which is reflected in its stock price. It is based on Direct Line's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Direct Line's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Direct Line Insurance helps investors to forecast how Direct 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 Direct Line more accurately as focusing exclusively on Direct Line's fundamentals will not take into account other important factors: Direct Line Insurance Company Current Valuation Analysis
Direct Line's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Direct Line Current Valuation | 1.06 B |
Most of Direct Line's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Direct Line Insurance is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, Direct Line Insurance has a Current Valuation of 1.06 B. This is 96.77% lower than that of the Insurance sector and significantly higher than that of the Financials industry. The current valuation for all United Kingdom stocks is 93.62% higher than that of the company.
Direct Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Direct Line's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Direct Line could also be used in its relative valuation, which is a method of valuing Direct Line by comparing valuation metrics of similar companies.Direct Line is currently under evaluation in current valuation category among its peers.
Direct Line ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Direct Line's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Direct Line's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Direct Fundamentals
| Return On Equity | 0.14 | |||
| Return On Asset | 0.0085 | |||
| Profit Margin | 0.09 % | |||
| Operating Margin | 0.09 % | |||
| Current Valuation | 1.06 B | |||
| Shares Outstanding | 1.3 B | |||
| Shares Owned By Insiders | 0.86 % | |||
| Shares Owned By Institutions | 99.14 % | |||
| Price To Book | 0.86 X | |||
| Price To Sales | 0.61 X | |||
| Revenue | 3.93 B | |||
| Gross Profit | 759.2 M | |||
| EBITDA | 415.4 M | |||
| Net Income | 206.3 M | |||
| Total Debt | 447.3 M | |||
| Book Value Per Share | 1.84 X | |||
| Cash Flow From Operations | 390.7 M | |||
| Earnings Per Share | 0.23 X | |||
| Price To Earnings To Growth | 2.33 X | |||
| Target Price | 222.2 | |||
| Number Of Employees | 10.13 K | |||
| Beta | 0.48 | |||
| Market Capitalization | 2.07 B | |||
| Total Asset | 8.42 B | |||
| Retained Earnings | 484.7 M | |||
| Annual Yield | 0.04 % | |||
| Net Asset | 8.42 B | |||
| Last Dividend Paid | 0.04 |
About Direct Line Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Direct Line Insurance's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Direct Line using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Direct Line Insurance based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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Direct Line financial ratios help investors to determine whether Direct Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Direct with respect to the benefits of owning Direct Line security.