Forestar Group Stock Current Valuation
| FOR Stock | USD 30.77 1.71 5.88% |
Valuation analysis of Forestar Group helps investors to measure Forestar's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. At this time, Forestar's Enterprise Value Over EBITDA is relatively stable compared to the past year. As of 11/25/2024, Enterprise Value Multiple is likely to grow to 44.06, while Enterprise Value is likely to drop slightly above 666.1 M. Fundamental drivers impacting Forestar's valuation include:
Price Book 0.9237 | Enterprise Value 1.7 B | Enterprise Value Ebitda 7.0052 | Price Sales 0.9755 | Trailing PE 7.265 |
Undervalued
Today
Please note that Forestar's price fluctuation is very steady at this time. Calculation of the real value of Forestar Group is based on 3 months time horizon. Increasing Forestar'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 Forestar stock is determined by what a typical buyer is willing to pay for full or partial control of Forestar Group. Since Forestar is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Forestar Stock. However, Forestar'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 30.77 | Real 30.83 | Target 31.33 | Hype 29.1 | Naive 27.87 |
The intrinsic value of Forestar'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, news, and other external factors that may influence Forestar's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Forestar Group helps investors to forecast how Forestar 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 Forestar more accurately as focusing exclusively on Forestar's fundamentals will not take into account other important factors: Forestar Group Company Current Valuation Analysis
Forestar'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 Forestar Current Valuation | 1.71 B |
Most of Forestar'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, Forestar Group is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Forestar Current Valuation Driver Correlations
Understanding the fundamental principles of building solid financial models for Forestar is extremely important. It helps to project a fair market value of Forestar Stock properly, considering its historical fundamentals such as Current Valuation. Since Forestar's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Forestar's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Forestar's interrelated accounts and indicators.
Click cells to compare fundamentals
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, Forestar Group has a Current Valuation of 1.71 B. This is 88.74% lower than that of the Real Estate Management & Development sector and significantly higher than that of the Real Estate industry. The current valuation for all United States stocks is 89.73% higher than that of the company.
Forestar Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Forestar'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 Forestar could also be used in its relative valuation, which is a method of valuing Forestar by comparing valuation metrics of similar companies.Forestar is currently under evaluation in current valuation category among its peers.
Forestar Current Valuation Drivers
We derive many important indicators used in calculating different scores of Forestar from analyzing Forestar's financial statements. These drivers represent accounts that assess Forestar's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Forestar's important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 767.3M | 850.3M | 911.0M | 557.5M | 1.3B | 1.6B | |
| Enterprise Value | 845.0M | 1.1B | 1.5B | 998.7M | 1.4B | 1.9B |
Forestar 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, Forestar's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Forestar's managers, analysts, and investors.Environmental | Governance | Social |
Forestar Fundamentals
| Return On Equity | 0.14 | ||||
| Return On Asset | 0.0567 | ||||
| Profit Margin | 0.13 % | ||||
| Operating Margin | 0.18 % | ||||
| Current Valuation | 1.71 B | ||||
| Shares Outstanding | 50.67 M | ||||
| Shares Owned By Insiders | 62.59 % | ||||
| Shares Owned By Institutions | 36.50 % | ||||
| Number Of Shares Shorted | 344.22 K | ||||
| Price To Earning | 8.42 X | ||||
| Price To Book | 0.92 X | ||||
| Price To Sales | 0.98 X | ||||
| Revenue | 1.51 B | ||||
| Gross Profit | 323.5 M | ||||
| EBITDA | 240.8 M | ||||
| Net Income | 203.4 M | ||||
| Cash And Equivalents | 616 M | ||||
| Cash Per Share | 2.94 X | ||||
| Total Debt | 706.4 M | ||||
| Debt To Equity | 0.62 % | ||||
| Current Ratio | 0.93 X | ||||
| Book Value Per Share | 31.47 X | ||||
| Cash Flow From Operations | (158.4 M) | ||||
| Short Ratio | 3.08 X | ||||
| Earnings Per Share | 4.00 X | ||||
| Price To Earnings To Growth | 3.50 X | ||||
| Target Price | 39.75 | ||||
| Beta | 1.76 | ||||
| Market Capitalization | 1.47 B | ||||
| Total Asset | 2.84 B | ||||
| Retained Earnings | 878.2 M | ||||
| Working Capital | 99.9 M | ||||
| Current Asset | 111.47 M | ||||
| Current Liabilities | 59.26 M | ||||
| Net Asset | 2.84 B |
About Forestar Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Forestar Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Forestar using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Forestar Group 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.
Pair Trading with Forestar
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Forestar position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Forestar will appreciate offsetting losses from the drop in the long position's value.Moving together with Forestar Stock
Moving against Forestar Stock
The ability to find closely correlated positions to Forestar could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Forestar when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Forestar - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Forestar Group to buy it.
The correlation of Forestar is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Forestar moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Forestar Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Forestar can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Tools for Forestar Stock Analysis
When running Forestar's price analysis, check to measure Forestar'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 Forestar is operating at the current time. Most of Forestar's value examination focuses on studying past and present price action to predict the probability of Forestar's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Forestar's price. Additionally, you may evaluate how the addition of Forestar to your portfolios can decrease your overall portfolio volatility.