Credo Technology Valuation
| CRDO Stock | USD 64.60 5.81 9.88% |
At this time, the firm appears to be undervalued. Credo Technology shows a prevailing Real Value of $69.07 per share. The current price of the firm is $64.6. Our model approximates the value of Credo Technology from analyzing the firm fundamentals such as return on equity of -0.0582, and Profit Margin of (0.12) % as well as examining its technical indicators and probability of bankruptcy.
Undervalued
Today
Please note that Credo Technology's price fluctuation is not too volatile at this time. Calculation of the real value of Credo Technology is based on 3 months time horizon. Increasing Credo Technology's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Credo Technology is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Credo Stock. However, Credo Technology'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 64.6 | Real 69.07 | Hype 62.88 | Naive 57.28 |
The intrinsic value of Credo Technology'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 Credo Technology'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 Credo Technology Group helps investors to forecast how Credo 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 Credo Technology more accurately as focusing exclusively on Credo Technology's fundamentals will not take into account other important factors: Credo Technology Total Value Analysis
Credo Technology Group is currently forecasted to have valuation of 9.47 B with market capitalization of 9.83 B, debt of 11.13 M, and cash on hands of 243.78 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Credo Technology fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
9.47 B | 9.83 B | 11.13 M | 243.78 M |
Credo Technology Investor Information
About 16.0% of the company shares are held by company insiders. The company has Price/Earnings To Growth (PEG) ratio of 0.9. Credo Technology recorded a loss per share of 0.14. The entity had not issued any dividends in recent years. Based on the key measurements obtained from Credo Technology's financial statements, Credo Technology Group is not in a good financial situation at this time. It has a very high probability of going through financial hardship in March.Credo Technology Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Credo Technology has an asset utilization ratio of 32.06 percent. This suggests that the Company is making $0.32 for each dollar of assets. An increasing asset utilization means that Credo Technology Group is more efficient with each dollar of assets it utilizes for everyday operations.Credo Technology Ownership Allocation
Credo Technology holds a total of 167.24 Million outstanding shares. The majority of Credo Technology Group outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Credo Technology to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Credo Technology. Please pay attention to any change in the institutional holdings of Credo Technology Group 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.Credo Technology Profitability Analysis
The company reported the previous year's revenue of 192.97 M. Net Loss for the year was (28.37 M) with profit before overhead, payroll, taxes, and interest of 135.92 M.About Credo Technology Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Credo Technology Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Credo Technology based exclusively on its fundamental and basic technical indicators. By analyzing Credo Technology's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Credo Technology's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Credo Technology. We calculate exposure to Credo Technology's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Credo Technology's related companies.Credo Technology Group Holding Ltd provides various high-speed connectivity solutions for optical and electrical Ethernet applications in the United States, Mexico, Mainland China, Hong Kong, and internationally. The company was founded in 2008 and is headquartered in San Jose, California. Credo Technology is traded on NASDAQ Exchange in the United States.
Credo Technology 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 | 155.1 M | |
| Quarterly Earnings Growth Y O Y | -0.867 | |
| Forward Price Earnings | 63.6943 |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Credo Technology Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Is Semiconductors & Semiconductor Equipment 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 Credo Technology. If investors know Credo 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 Credo Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Credo Technology is measured differently than its book value, which is the value of Credo that is recorded on the company's balance sheet. Investors also form their own opinion of Credo Technology's value that differs from its market value or its book value, called intrinsic value, which is Credo Technology'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 Credo Technology's market value can be influenced by many factors that don't directly affect Credo Technology'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 Credo Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Credo Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Credo Technology'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.