Grid Dynamics Valuation
| GDYN Stock | USD 22.57 1.05 4.88% |
At this time, the firm appears to be overvalued. Grid Dynamics Holdings retains a regular Real Value of $20.93 per share. The prevalent price of the firm is $22.57. Our model calculates the value of Grid Dynamics Holdings from evaluating the firm fundamentals such as Current Valuation of 1.58 B, return on equity of 0.0063, and Return On Asset of -4.0E-4 as well as inspecting its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Grid Dynamics' price fluctuation is not too volatile at this time. Calculation of the real value of Grid Dynamics Holdings is based on 3 months time horizon. Increasing Grid Dynamics' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Grid Dynamics is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Grid Stock. However, Grid Dynamics' 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 22.57 | Real 20.93 | Hype 22.95 | Naive 23.55 |
The intrinsic value of Grid Dynamics' 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 Grid Dynamics' 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 Grid Dynamics Holdings helps investors to forecast how Grid 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 Grid Dynamics more accurately as focusing exclusively on Grid Dynamics' fundamentals will not take into account other important factors: Grid Dynamics Total Value Analysis
Grid Dynamics Holdings is currently anticipated to have valuation of 1.58 B with market capitalization of 1.8 B, debt of 11 M, and cash on hands of 150.02 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Grid Dynamics fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
1.58 B | 1.8 B | 11 M | 150.02 M |
Grid Dynamics Investor Information
About 23.0% of the company shares are held by company insiders. The book value of Grid Dynamics was currently reported as 5.22. The company had not issued any dividends in recent years. Based on the key indicators related to Grid Dynamics' liquidity, profitability, solvency, and operating efficiency, Grid Dynamics Holdings is not in a good financial situation at the present time. It has a very high chance of going through financial crunch in March.Grid Dynamics Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The recent return on assets of Grid suggests not a very effective usage of assets in January.Grid Dynamics Ownership Allocation
Grid Dynamics Holdings has a total of 83.43 Million outstanding shares. Over half of Grid Dynamics' outstanding shares are owned by outside corporations. These outside corporations are typically referred to as corporate investors that purchase positions in a given instrument to benefit from reduced trade commissions. Please note that no matter how many assets the company holds, if the real value of the firm is less than the current market value, you may not be able to make money on it.Grid Dynamics Profitability Analysis
The company reported the previous year's revenue of 312.91 M. Net Loss for the year was (1.76 M) with profit before overhead, payroll, taxes, and interest of 118.07 M.About Grid Dynamics Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Grid Dynamics Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Grid Dynamics Holdings based exclusively on its fundamental and basic technical indicators. By analyzing Grid Dynamics's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Grid Dynamics's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Grid Dynamics. We calculate exposure to Grid Dynamics's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Grid Dynamics's related companies.Grid Dynamics Holdings, Inc., together with its subsidiaries, provides enterprise-level digital transformation services in the areas of search, analytics, and release automation for Fortune 1000 corporations in North America, Europe, and internationally. Grid Dynamics Holdings, Inc. was founded in 2006 and is headquartered in San Ramon, California. Grid Dynamics operates under Information Technology Services classification in the United States and is traded on NASDAQ Exchange. It employs 3763 people.
Grid Dynamics Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 75.2 M | |
| Quarterly Earnings Growth Y O Y | 4.582 | |
| Forward Price Earnings | 131.5789 |
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Grid Dynamics Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in manufacturing. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Internet Services & Infrastructure 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 Grid Dynamics. If investors know Grid 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 Grid Dynamics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Grid Dynamics Holdings is measured differently than its book value, which is the value of Grid that is recorded on the company's balance sheet. Investors also form their own opinion of Grid Dynamics' value that differs from its market value or its book value, called intrinsic value, which is Grid Dynamics' 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 Grid Dynamics' market value can be influenced by many factors that don't directly affect Grid Dynamics' 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 Grid Dynamics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Grid Dynamics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Grid Dynamics' 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.