Canaan Valuation
| CAN Stock | USD 0.50 0.08 13.59% |
Canaan is undervalued. Canaan Inc shows a prevailing Real Value of $1.16 per share. The current price of the firm is $0.50120002. Our model approximates the value of Canaan Inc from analyzing the firm fundamentals such as Profit Margin of (0.52) %, return on equity of -0.63, and Current Valuation of 345.77 M as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Canaan's valuation include:
Price Book 1.0985 | Enterprise Value | Enterprise Value Ebitda 0.5978 | Price Sales 0.9564 | Forward PE 2.1519 |
Undervalued
Today
Please note that Canaan's price fluctuation is extremely dangerous at this time. Calculation of the real value of Canaan Inc is based on 3 months time horizon. Increasing Canaan's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Canaan is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Canaan Stock. However, Canaan'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 0.5 | Real 1.16 | Target 2.91 | Hype 0.61 | Naive 0.44 |
The intrinsic value of Canaan'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 Canaan'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 Canaan Inc helps investors to forecast how Canaan 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 Canaan more accurately as focusing exclusively on Canaan'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 Canaan's intrinsic value based on its ongoing forecasts of Canaan's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Canaan's closest peers.
Canaan Cash |
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Canaan Total Value Analysis
Canaan Inc is currently forecasted to have company total value of 345.77 M with market capitalization of 403.82 M, debt of 94.99 M, and cash on hands of 2.64 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Canaan fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
345.77 M | 403.82 M | 94.99 M | 2.64 B |
Canaan Investor Information
About 16.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.1. Some equities with similar Price to Book (P/B) outperform the market in the long run. Canaan Inc recorded a loss per share of 0.88. The entity had not issued any dividends in recent years. Based on the analysis of Canaan's profitability, liquidity, and operating efficiency, Canaan Inc may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.Canaan Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Canaan has an asset utilization ratio of 58.17 percent. This suggests that the Company is making $0.58 for each dollar of assets. An increasing asset utilization means that Canaan Inc is more efficient with each dollar of assets it utilizes for everyday operations.Canaan Profitability Analysis
Considering Canaan's profitability and operating efficiency indicators, Canaan Inc may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in March. Profitability indicators assess Canaan's ability to earn profits and add value for shareholders.Net Loss | First Reported 2018-09-30 | Previous Quarter -11.1 M | Current Value -27.8 M | Quarterly Volatility 90.4 M |
For Canaan profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Canaan Inc to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Canaan utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Canaan's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Canaan over time as well as its relative position and ranking within its peers.
Canaan Earnings per Share Projection vs Actual
By analyzing Canaan's earnings estimates, investors can diagnose different trends across Canaan's analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for Canaan Inc is based on EPS before non-recurring items and includes expenses related to employee stock options.Canaan Ownership Allocation
Almost 84.0 percent of Canaan outstanding shares are held by general public with 16.0 % by other corporate entities.Canaan Profitability Analysis
The company reported the last year's revenue of 269.32 M. Reported Net Loss for the year was (249.75 M) with profit before taxes, overhead, and interest of 20.22 M.About Canaan Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Canaan Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Canaan Inc based exclusively on its fundamental and basic technical indicators. By analyzing Canaan's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Canaan's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Canaan. We calculate exposure to Canaan's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Canaan's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | -75.9 M | -72.1 M | |
| Pretax Profit Margin | (0.74) | (0.77) | |
| Operating Profit Margin | (0.97) | (0.92) | |
| Net Loss | (1.07) | (1.01) | |
| Gross Profit Margin | (0.36) | (0.34) |
Canaan Growth Indicators
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.
| Common Stock Shares Outstanding | 271.5 M | |
| Quarterly Earnings Growth Y O Y | -0.916 | |
| Forward Price Earnings | 2.1519 |
Canaan Current Valuation Indicators
Canaan'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 Canaan'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 Canaan, 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 Canaan'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 Canaan's worth.When determining whether Canaan Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Canaan's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Canaan Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Canaan Inc Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Canaan Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Will Semiconductors & Semiconductor Equipment sector continue expanding? Could Canaan diversify its offerings? Factors like these will boost the valuation of Canaan. Projected growth potential of Canaan fundamentally drives upward valuation adjustments. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Canaan data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth (0.92) | Earnings Share (0.88) | Revenue Per Share | Quarterly Revenue Growth 1.044 | Return On Assets |
The market value of Canaan Inc is measured differently than its book value, which is the value of Canaan that is recorded on the company's balance sheet. Investors also form their own opinion of Canaan's value that differs from its market value or its book value, called intrinsic value, which is Canaan's true underlying value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Because Canaan's market value can be influenced by many factors that don't directly affect Canaan's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
It's important to distinguish between Canaan's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Canaan should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. Meanwhile, Canaan's quoted price indicates the marketplace figure where supply meets demand through bilateral consent.