Deswell Industries Valuation
| DSWL Stock | USD 2.62 0.02 0.77% |
Based on Macroaxis valuation methodology, the firm appears to be overvalued. Deswell Industries shows a prevailing Real Value of $2.15 per share. The current price of the firm is $2.62. Our model computes the value of Deswell Industries from reviewing the firm fundamentals such as Shares Outstanding of 15.94 M, profit margin of 0.11 %, and Current Valuation of (23.95 M) as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Deswell Industries' valuation include:
Price Book 0.4233 | Enterprise Value -23.9 M | Enterprise Value Ebitda 0.5126 | Price Sales 0.6027 | Trailing PE 4.0232 |
Overvalued
Today
Please note that Deswell Industries' price fluctuation is relatively risky at this time. Calculation of the real value of Deswell Industries is based on 3 months time horizon. Increasing Deswell Industries' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Deswell stock is determined by what a typical buyer is willing to pay for full or partial control of Deswell Industries. Since Deswell Industries is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Deswell Stock. However, Deswell Industries' 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 2.62 | Real 2.15 | Hype 2.62 | Naive 2.71 |
The intrinsic value of Deswell Industries' 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 Deswell Industries' stock price.
Estimating the potential upside or downside of Deswell Industries helps investors to forecast how Deswell 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 Deswell Industries more accurately as focusing exclusively on Deswell Industries' 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 Deswell Industries' intrinsic value based on its ongoing forecasts of Deswell Industries' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Deswell Industries' closest peers.
Deswell Industries Cash |
|
Deswell Valuation Trend
Knowing Deswell Industries' actual value is paramount for traders when making sound investment determinations. Using both Deswell Industries' 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.
Deswell Industries Total Value Analysis
Deswell Industries is currently anticipated to have valuation of (23.95 M) with market capitalization of 41.67 M, debt of 16.91 M, and cash on hands of 43.88 M. The negative valuation of Deswell Industries 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 Deswell Industries fundamentals.| Takeover Price | Market Cap | Debt Obligations | Cash |
(23.95 M) | 41.67 M | 16.91 M | 43.88 M |
Deswell Industries Investor Information
About 71.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 0.42. Some equities with similar Price to Book (P/B) outperform the market in the long run. Deswell Industries last dividend was issued on the 5th of July 2024. The entity had 3:2 split on the 30th of March 2005. Based on the key indicators related to Deswell Industries' liquidity, profitability, solvency, and operating efficiency, Deswell Industries is performing exceptionally good at this time. It has a great probability to report excellent financial results in December.Deswell Industries Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Deswell Industries has an asset utilization ratio of 62.45 percent. This suggests that the Company is making $0.62 for each dollar of assets. An increasing asset utilization means that Deswell Industries is more efficient with each dollar of assets it utilizes for everyday operations.Deswell Industries Ownership Allocation
Deswell Industries holds a total of 15.94 Million outstanding shares. Deswell Industries shows majority of its outstanding shares owned by insiders. An insider is usually defined as a corporate executive, director, member of the board or institutional investor who own at least 10% of the company's outstanding shares. 71.21 percent of Deswell Industries outstanding shares that are owned by insiders denotes they have been buying or selling the stock in recent months in anticipation of some upcoming event. 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.Deswell Industries Profitability Analysis
The company reported the previous year's revenue of 69.37 M. Net Income was 7.71 M with profit before overhead, payroll, taxes, and interest of 12.84 M.Deswell Industries Past Distributions to stockholders
About Deswell Industries Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Deswell Industries. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Deswell Industries based exclusively on its fundamental and basic technical indicators. By analyzing Deswell Industries's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Deswell Industries's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Deswell Industries. We calculate exposure to Deswell Industries's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Deswell Industries's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 13.9 M | 14.4 M | |
| Pretax Profit Margin | 0.11 | 0.08 | |
| Operating Profit Margin | 0.05 | 0.06 | |
| Net Profit Margin | 0.11 | 0.07 | |
| Gross Profit Margin | 0.20 | 0.26 |
Deswell Industries Quarterly Retained Earnings |
|
A single share of Deswell Industries represents a small ownership stake in the entity. As a stockholder of Deswell, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Deswell Industries Dividends Analysis For Valuation
At this time, Deswell Industries' Dividends Paid is quite stable compared to the past year. Dividend Paid And Capex Coverage Ratio is expected to rise to 3.89 this year, although the value of Dividend Yield will most likely fall to 0.05. . At this time, Deswell Industries' Earnings Yield is quite stable compared to the past year. Price Earnings Ratio is expected to rise to 7.32 this year, although the value of Retained Earnings will most likely fall to about 27.2 M.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 2.9 M | 3.6 M | |
| Dividend Yield | 0.09 | 0.05 | |
| Dividend Payout Ratio | 0.41 | 0.32 | |
| Dividend Paid And Capex Coverage Ratio | 3.70 | 3.89 |
There are various types of dividends Deswell Industries can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Deswell shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Deswell Industries directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Deswell pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Deswell Industries by the value of the dividends paid out.
Deswell Industries Growth Indicators
Investing in growth stocks can be very risky. If the company such as Deswell Industries 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 | 16 M | |
| Quarterly Earnings Growth Y O Y | 0.592 |
Deswell Industries Current Valuation Indicators
Deswell Industries' 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 Deswell Industries' 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 Deswell Industries, 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 Deswell Industries' 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 Deswell Industries' worth.When determining whether Deswell Industries is a strong investment it is important to analyze Deswell Industries' 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 Deswell Industries' future performance. For an informed investment choice regarding Deswell Stock, refer to the following important reports: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Deswell Industries. 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. For more information on how to buy Deswell Stock please use our How to buy in Deswell Stock guide.You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Is Electronic Equipment, Instruments & Components 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 Deswell Industries. If investors know Deswell 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 Deswell Industries listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.592 | Earnings Share 0.65 | Revenue Per Share 4.353 | Quarterly Revenue Growth (0.04) | Return On Assets 0.0219 |
The market value of Deswell Industries is measured differently than its book value, which is the value of Deswell that is recorded on the company's balance sheet. Investors also form their own opinion of Deswell Industries' value that differs from its market value or its book value, called intrinsic value, which is Deswell Industries' 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 Deswell Industries' market value can be influenced by many factors that don't directly affect Deswell Industries' 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 Deswell Industries' value and its price as these two are different measures arrived at by different means. Investors typically determine if Deswell Industries is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Deswell Industries' 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.