American Well Valuation
| AMWL Stock | USD 9.31 1.21 14.94% |
At this time, the firm appears to be overvalued. American Well Corp shows a prevailing Real Value of $5.23 per share. The current price of the firm is $9.31. Our model approximates the value of American Well Corp from analyzing the firm fundamentals such as profit margin of (0.84) %, and Return On Equity of -0.5 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting American Well's valuation include:
Price Book 0.3686 | Enterprise Value -111.5 M | Enterprise Value Ebitda (0.82) | Price Sales 0.4885 | Enterprise Value Revenue 0.7345 |
Overvalued
Today
Please note that American Well's price fluctuation is relatively risky at this time. Calculation of the real value of American Well Corp is based on 3 months time horizon. Increasing American Well'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 American stock is determined by what a typical buyer is willing to pay for full or partial control of American Well Corp. Since American Well is currently traded on the exchange, buyers and sellers on that exchange determine the market value of American Stock. However, American Well'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 9.31 | Real 5.23 | Target 2.63 | Hype 9.44 | Naive 9.28 |
The intrinsic value of American Well's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence American Well's stock price.
Estimating the potential upside or downside of American Well Corp helps investors to forecast how American 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 American Well more accurately as focusing exclusively on American Well's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use American Well's intrinsic value based on its ongoing forecasts of American Well's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against American Well's closest peers.
American Well Cash |
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American Valuation Trend
Knowing American Well's actual value is paramount for traders when making sound investment determinations. Using both American Well's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
American Revenue by Product
American Well Total Value Analysis
American Well Corp is presently anticipated to have valuation of (111.46 M) with market capitalization of 124.09 M, debt of 11.79 M, and cash on hands of 581.61 M. The negative valuation of American Well may imply that the market is not capable to price the future growth of the company or it is pricing it at zero value. It may also suggest that takeover valuation may not have captured all of the outstanding financial obligations of the company both on and off balance sheet. Investors should vigilantly validate all of the American Well fundamentals.| Takeover Price | Market Cap | Debt Obligations | Cash |
(111.46 M) | 124.09 M | 11.79 M | 581.61 M |
American Well Investor Information
About 49.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 0.37. Some equities with similar Price to Book (P/B) outperform the market in the long run. American Well Corp recorded a loss per share of 14.45. The entity had not issued any dividends in recent years. The firm had 1:20 split on the 11th of July 2024. Based on the analysis of American Well's profitability, liquidity, and operating efficiency, American Well Corp is not in a good financial situation at this time. It has a very high probability of going through financial hardship in December.American Well Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. American Well has an asset utilization ratio of 43.93 percent. This suggests that the Company is making $0.44 for each dollar of assets. An increasing asset utilization means that American Well Corp is more efficient with each dollar of assets it utilizes for everyday operations.American Well Ownership Allocation
The market capitalization of American Well Corp is $124.09 Million. 30% of American Well Corp outstanding shares are owned by other corporate entities. Institutional investors are typically referred to investors that purchase positions in a given stock to benefit from reduced commissions. Consequently, institutional investors are subject to different rules and regulations than regular investors. Please look out for any change in current institutional holding as this could mean something significant has changed at the company or is about to change. Note, that even with negative profits, if the true value of the firm is larger than the current market value, you may still be able to generate positive returns on investment in this company.American Well Profitability Analysis
The company reported the previous year's revenue of 259.05 M. Net Loss for the year was (675.16 M) with profit before overhead, payroll, taxes, and interest of 116.77 M.About American Well Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of American Well Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of American Well Corp based exclusively on its fundamental and basic technical indicators. By analyzing American Well's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of American Well's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of American Well. We calculate exposure to American Well's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of American Well's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 94.8 M | 96.9 M | |
| Pretax Profit Margin | (2.60) | (2.47) | |
| Operating Profit Margin | (2.67) | (2.54) | |
| Net Loss | (2.61) | (2.48) | |
| Gross Profit Margin | 0.37 | 0.46 |
American Well Growth Indicators
Investing in growth stocks can be very risky. If the company such as American Well 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.
| Common Stock Shares Outstanding | 14.2 M |
American Well Current Valuation Indicators
American Well's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final American Well's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as American Well, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use American Well's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes American Well's worth.When determining whether American Well Corp is a strong investment it is important to analyze American Well's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact American Well's future performance. For an informed investment choice regarding American Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Well Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Is Health Care Equipment & Supplies space 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 American Well. If investors know American 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 American Well listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (14.45) | Revenue Per Share 17.223 | Quarterly Revenue Growth (0.01) | Return On Assets (0.25) | Return On Equity (0.50) |
The market value of American Well Corp is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Well's value that differs from its market value or its book value, called intrinsic value, which is American Well'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 American Well's market value can be influenced by many factors that don't directly affect American Well'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 American Well's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Well is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Well'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.