Forestar Valuation
| FOR Stock | USD 24.68 0.74 3.09% |
At this time, the firm appears to be undervalued. Forestar Group shows a prevailing Real Value of $31.92 per share. The current price of the firm is $24.68. Our model computes the value of Forestar Group from reviewing the firm fundamentals such as Shares Outstanding of 50.67 M, profit margin of 0.13 %, and Current Valuation of 1.9 B as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Forestar's valuation include:
Undervalued
Today
Please note that Forestar's price fluctuation is very steady at this time. Calculation of the real value of Forestar Group is based on 3 months time horizon. Increasing Forestar'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 Forestar stock is determined by what a typical buyer is willing to pay for full or partial control of Forestar Group. Since Forestar is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Forestar Stock. However, Forestar'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 24.68 | Real 31.92 | Target 37.5 | Hype 24.78 | Naive 22.81 |
The intrinsic value of Forestar'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 Forestar'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 Forestar Group helps investors to forecast how Forestar 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 Forestar more accurately as focusing exclusively on Forestar'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 Forestar's intrinsic value based on its ongoing forecasts of Forestar's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Forestar's closest peers.
Forestar Cash |
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Forestar Valuation Trend
Forestar's real value is important for investors to make better decisions and a more accurate overall view of Forestar's financial worth over time. Using both Forestar's enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
Forestar Total Value Analysis
Forestar Group is currently estimated to have company total value of 1.9 B with market capitalization of 1.21 B, debt of 716.6 M, and cash on hands of 616 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Forestar fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
1.9 B | 1.21 B | 716.6 M | 616 M |
Forestar Investor Information
About 63.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 0.75. Some equities with similar Price to Book (P/B) outperform the market in the long run. Forestar Group had not issued any dividends in recent years. Based on the analysis of Forestar's profitability, liquidity, and operating efficiency, Forestar Group is performing exceptionally good at this time. It has a great probability to report excellent financial results in March.Forestar Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Forestar has an asset utilization ratio of 53.15 percent. This connotes that the Company is making $0.53 for each dollar of assets. An increasing asset utilization means that Forestar Group is more efficient with each dollar of assets it utilizes for everyday operations.Forestar Ownership Allocation
Forestar holds a total of 50.67 Million outstanding shares. Forestar Group 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. 62.54 percent of Forestar Group 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.Forestar Profitability Analysis
The company reported the last year's revenue of 1.51 B. Total Income to common stockholders was 203.4 M with profit before taxes, overhead, and interest of 359.3 M.About Forestar Valuation
The stock valuation mechanism determines Forestar's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Forestar Group based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Forestar. We calculate exposure to Forestar's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Forestar's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 413.2 M | 433.9 M | |
| Pretax Profit Margin | 0.46 | 0.48 | |
| Operating Profit Margin | 0.35 | 0.24 | |
| Net Profit Margin | 0.44 | 0.46 | |
| Gross Profit Margin | 0.04 | 0.04 |
Forestar Growth Indicators
Investing in growth stocks can be very risky. If the company such as Forestar 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 | 50.8 M | |
| Quarterly Earnings Growth Y O Y | 0.114 |
Forestar Current Valuation Indicators
Forestar's 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 Forestar's 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 Forestar, 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 Forestar's 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 Forestar's worth.Additional Tools for Forestar Stock Analysis
When running Forestar's price analysis, check to measure Forestar'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 Forestar is operating at the current time. Most of Forestar's value examination focuses on studying past and present price action to predict the probability of Forestar's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Forestar's price. Additionally, you may evaluate how the addition of Forestar to your portfolios can decrease your overall portfolio volatility.