Direct Line Valuation
| DLG Stock | 159.00 0.80 0.51% |
At this time, the firm appears to be overvalued. Direct Line Insurance shows a prevailing Real Value of USD133.56 per share. The current price of the firm is USD159.0. Our model computes the value of Direct Line Insurance from reviewing the firm fundamentals such as Profit Margin of 0.09 %, shares outstanding of 1.3 B, and Current Valuation of 1.06 B as well as analyzing its technical indicators and probability of bankruptcy.
Price Book 0.8603 | Enterprise Value 1.1 B | Price Sales 0.6117 | Forward PE 7.6805 | Trailing PE 6.913 |
Overvalued
Today
Please note that Direct Line's price fluctuation is very steady at this time. Calculation of the real value of Direct Line Insurance is based on 3 months time horizon. Increasing Direct Line'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 Direct stock is determined by what a typical buyer is willing to pay for full or partial control of Direct Line Insurance. Since Direct Line is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Direct Stock. However, Direct Line'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 159.0 | Real 133.56 | Hype 158.43 | Naive 158.93 |
The real value of Direct Stock, also known as its intrinsic value, is the underlying worth of Direct Line Insurance Company, which is reflected in its stock price. It is based on Direct Line's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Direct Line'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, or news.
Estimating the potential upside or downside of Direct Line Insurance helps investors to forecast how Direct 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 Direct Line more accurately as focusing exclusively on Direct Line's fundamentals will not take into account other important factors: Direct Line Cash |
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Direct Line Total Value Analysis
Direct Line Insurance is currently forecasted to have takeover price of 1.06 B with market capitalization of 2.07 B, debt of 447.3 M, 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 Direct Line fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
1.06 B | 2.07 B | 447.3 M |
Direct Line Investor Information
About 99.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 0.86. Some equities with similar Price to Book (P/B) outperform the market in the long run. Direct Line Insurance has Price/Earnings To Growth (PEG) ratio of 2.33. The entity last dividend was issued on the 12th of September 2024. The firm had 11:12 split on the 30th of June 2015. Based on the measurements of operating efficiency obtained from Direct Line's historical financial statements, Direct Line Insurance is not in a good financial situation at the present time. It has a very high chance of going through financial crunch in December.Direct Line Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The latest return on assets of Direct indicates not a very effective usage of assets in November.Direct Line Ownership Allocation
Direct Line Insurance retains a total of 1.3 Billion outstanding shares. The majority of Direct Line Insurance outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Direct Line Insurance to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Direct Line. Please pay attention to any change in the institutional holdings of Direct Line Insurance as this could imply that something significant has changed or is about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.Direct Line Profitability Analysis
The company reported the revenue of 3.93 B. Net Income was 206.3 M with profit before overhead, payroll, taxes, and interest of 759.2 M.Direct Line Past Distributions to stockholders
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Direct Line's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Direct Line and how it compares across the competition.
About Direct Line Valuation
The stock valuation mechanism determines Direct Line's current worth on a weekly basis. Our valuation model uses a comparative analysis of Direct Line. We calculate exposure to Direct Line's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Direct Line's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 3.9 B | 3.1 B |
Direct Line Quarterly Retained Earnings |
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Complementary Tools for Direct Stock analysis
When running Direct Line's price analysis, check to measure Direct Line'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 Direct Line is operating at the current time. Most of Direct Line's value examination focuses on studying past and present price action to predict the probability of Direct Line's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Direct Line's price. Additionally, you may evaluate how the addition of Direct Line to your portfolios can decrease your overall portfolio volatility.
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