Frequency Electronics Valuation
| FEIM Stock | USD 52.58 4.84 8.43% |
At this time, the firm appears to be overvalued. Frequency Electronics shows a prevailing Real Value of $37.93 per share. The current price of the firm is $52.58. Our model computes the value of Frequency Electronics from reviewing the firm fundamentals such as Current Valuation of 566.64 M, profit margin of 0.32 %, and Shares Outstanding of 9.75 M as well as analyzing its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Frequency Electronics' price fluctuation is not too volatile at this time. Calculation of the real value of Frequency Electronics is based on 3 months time horizon. Increasing Frequency Electronics' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Frequency stock is determined by what a typical buyer is willing to pay for full or partial control of Frequency Electronics. Since Frequency Electronics is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Frequency Stock. However, Frequency Electronics' 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 52.58 | Real 37.93 | Hype 52.98 | Naive 56.04 |
The intrinsic value of Frequency Electronics' 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 Frequency Electronics' 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 Frequency Electronics helps investors to forecast how Frequency 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 Frequency Electronics more accurately as focusing exclusively on Frequency Electronics' fundamentals will not take into account other important factors: About Frequency Electronics Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Frequency Electronics. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Frequency Electronics based exclusively on its fundamental and basic technical indicators. By analyzing Frequency Electronics's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Frequency Electronics's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Frequency Electronics. We calculate exposure to Frequency Electronics's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Frequency Electronics's related companies.Frequency Electronics, Inc., together with its subsidiaries, designs, develops, manufactures, and sells precision time and frequency control products and components for microwave integrated circuit applications. Frequency Electronics, Inc. was founded in 1961 and is headquartered in Mitchel Field, New York. Frequency Elcts operates under Communication Equipment classification in the United States and is traded on NASDAQ Exchange. It employs 197 people.
A single share of Frequency Electronics represents a small ownership stake in the entity. As a stockholder of Frequency, 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.
Frequency Electronics Dividends Analysis For Valuation
Please note that Frequency Electronics has scaled down on payment of dividends at this time.
There are various types of dividends Frequency Electronics 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 Frequency 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 Frequency Electronics directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Frequency pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Frequency Electronics by the value of the dividends paid out.
Frequency Electronics Growth Indicators
Investing in growth stocks can be very risky. If the company such as Frequency Electronics 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 | 9.6 M | |
| Quarterly Earnings Growth Y O Y | 0.394 |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Frequency Electronics. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product. To learn how to invest in Frequency Stock, please use our How to Invest in Frequency Electronics guide.You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Will Electronic Equipment, Instruments & Components sector continue expanding? Could Frequency diversify its offerings? Factors like these will boost the valuation of Frequency Electronics. Market participants price Frequency higher when confident in its future expansion prospects. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Frequency Electronics data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Frequency Electronics's market price often diverges from its book value, the accounting figure shown on Frequency's balance sheet. Smart investors calculate Frequency Electronics' intrinsic value—its true economic worth—which may differ significantly from both market price and book value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Since Frequency Electronics' trading price responds to investor sentiment, macroeconomic conditions, and market psychology, it can swing far from fundamental value.
Please note, there is a significant difference between Frequency Electronics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Frequency Electronics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Frequency Electronics' 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.