Please note that Discover Financial's price fluctuation is very steady at this time. Calculation of the real value of Discover Financial is based on 3 months time horizon. Increasing Discover Financial'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 Discover stock is determined by what a typical buyer is willing to pay for full or partial control of Discover Financial Services. Since Discover Financial is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Discover Stock. However, Discover Financial'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 204.6
Real 224.76
Hype 204.6
Naive 209.19
The intrinsic value of Discover Financial'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 Discover Financial'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 Discover Financial Services helps investors to forecast how Discover 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 Discover Financial more accurately as focusing exclusively on Discover Financial's fundamentals will not take into account other important factors:
Discover Financial Services is presently projected to have takeover price of 40.93 B with market capitalization of 39.02 B, debt of 21.33 B, and cash on hands of . Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Discover Financial fundamentals before making investing decisions based on enterprise value of the company
About 86.0% of the company shares are owned by institutions such as pension funds. The company recorded earning per share (EPS) of 16.99. Discover Financial had not issued any dividends in recent years. Discover Financial Services is not in a good financial situation at this time. It has a very high probability of going through financial hardship in March.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Discover Financial has an asset utilization ratio of 6.5 percent. This implies that the Company is making USD0.065 for each dollar of assets. An increasing asset utilization means that Discover Financial Services is more efficient with each dollar of assets it utilizes for everyday operations.
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Discover Financial Ownership Allocation
Discover Financial holds a total of 335.96 Million outstanding shares. The majority of Discover Financial Services outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Discover Financial to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Discover Financial. Please pay attention to any change in the institutional holdings of Discover Financial Services as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.
Discover Financial Profitability Analysis
The company reported the revenue of 9.84 B. Net Income was 2.92 B with profit before overhead, payroll, taxes, and interest of 11.08 B.
About Discover Financial Valuation
The stock valuation mechanism determines Discover Financial's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Discover Financial based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Discover Financial. We calculate exposure to Discover Financial's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Discover Financial's related companies.
When running Discover Financial's price analysis, check to measure Discover Financial'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 Discover Financial is operating at the current time. Most of Discover Financial's value examination focuses on studying past and present price action to predict the probability of Discover Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Discover Financial's price. Additionally, you may evaluate how the addition of Discover Financial to your portfolios can decrease your overall portfolio volatility.