Fairfax Financial Valuation
| FFH Stock | CAD 1,971 15.75 0.81% |
At this time, the firm appears to be undervalued. Fairfax Financial shows a prevailing Real Value of C$2209.15 per share. The current price of the firm is C$1970.84. Our model computes the value of Fairfax Financial from reviewing the firm fundamentals such as Shares Outstanding of 21.24 M, profit margin of 0.12 %, and Current Valuation of 49.47 B as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Fairfax Financial's valuation include:
Price Book 1.4134 | Enterprise Value 49.5 B | Price Sales 1.3039 | Forward PE 9.2851 | Trailing PE 8.5701 |
Undervalued
Today
Please note that Fairfax Financial's price fluctuation is very steady at this time. Calculation of the real value of Fairfax Financial is based on 3 months time horizon. Increasing Fairfax Financial's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Fairfax Financial is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Fairfax Stock. However, Fairfax Financial'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 1970.84 | Real 2209.15 | Hype 1960.88 |
The intrinsic value of Fairfax Financial'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 Fairfax Financial'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 Fairfax Financial Holdings helps investors to forecast how Fairfax 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 Fairfax Financial more accurately as focusing exclusively on Fairfax Financial'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 Fairfax Financial's intrinsic value based on its ongoing forecasts of Fairfax Financial's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Fairfax Financial's closest peers.
Fairfax Financial Cash |
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Fairfax Valuation Trend
Knowing Fairfax Financial's actual value is paramount for traders when making sound investment determinations. Using both Fairfax Financial's 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.
Fairfax Financial Total Value Analysis
Fairfax Financial Holdings is currently forecasted to have takeover price of 49.47 B with market capitalization of 44.56 B, debt of 10.8 B, and cash on hands of 40.6 M. 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 Fairfax Financial fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
49.47 B | 44.56 B | 10.8 B | 40.6 M |
Fairfax Financial Investor Information
About 38.0% of the company shares are owned by institutional investors. The company has price-to-book (P/B) ratio of 1.41. Some equities with similar Price to Book (P/B) outperform the market in the long run. Fairfax Financial has Price/Earnings To Growth (PEG) ratio of 0.28. The entity recorded earning per share (EPS) of 228.13. The firm last dividend was issued on the 17th of January 2024. Based on the analysis of Fairfax Financial's profitability, liquidity, and operating efficiency, Fairfax Financial Holdings is doing better financially today then in previous quarter. It has a moderate chance of reporting better financial numbers in December.Fairfax Financial Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Fairfax Financial has an asset utilization ratio of 28.05 percent. This suggests that the Company is making C$0.28 for each dollar of assets. An increasing asset utilization means that Fairfax Financial Holdings is more efficient with each dollar of assets it utilizes for everyday operations.Fairfax Financial Ownership Allocation
Fairfax Financial holds a total of 21.24 Million outstanding shares. 30% of Fairfax Financial Holdings outstanding shares are owned by other corporate entities. Institutional investors are typically referred to investors that purchase positions in a given stock to benefit from reduced commissions. Consequently, institutional investors are subject to different rules and regulations than regular investors. Please look out for any change in current institutional holding as this could mean something significant has changed at the company or is about to change. 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.Fairfax Financial Profitability Analysis
The company reported the revenue of 25.8 B. Net Income was 5.09 B with profit before overhead, payroll, taxes, and interest of 9.52 B.Fairfax Financial Past Distributions to stockholders
About Fairfax Financial Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Fairfax Financial Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Fairfax Financial based exclusively on its fundamental and basic technical indicators. By analyzing Fairfax Financial's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Fairfax Financial's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Fairfax Financial. We calculate exposure to Fairfax Financial's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Fairfax Financial's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 25.8 B | 27.1 B | |
| Pretax Profit Margin | 0.23 | 0.17 | |
| Operating Profit Margin | 1.22 | 1.28 | |
| Net Profit Margin | 0.17 | 0.18 | |
| Gross Profit Margin | 0.93 | 1.07 |
Fairfax Financial Quarterly Retained Earnings |
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Other Information on Investing in Fairfax Stock
Fairfax Financial financial ratios help investors to determine whether Fairfax Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Fairfax with respect to the benefits of owning Fairfax Financial security.