Hitachi Valuation
| HIA1 Stock | EUR 22.72 0.87 3.69% |
At this time, the firm appears to be overvalued. Hitachi retains a regular Real Value of €19.09 per share. The prevalent price of the firm is €22.72. Our model calculates the value of Hitachi from evaluating the firm fundamentals such as Return On Equity of 0.0978, current valuation of 57.3 B, and Return On Asset of 0.0296 as well as inspecting its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Hitachi's price fluctuation is not too volatile at this time. Calculation of the real value of Hitachi is based on 3 months time horizon. Increasing Hitachi'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 Hitachi stock is determined by what a typical buyer is willing to pay for full or partial control of Hitachi. Since Hitachi is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Hitachi Stock. However, Hitachi'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 22.72 | Real 19.09 | Hype 22.72 |
The real value of Hitachi Stock, also known as its intrinsic value, is the underlying worth of Hitachi Company, which is reflected in its stock price. It is based on Hitachi's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Hitachi'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, or news.
Estimating the potential upside or downside of Hitachi helps investors to forecast how Hitachi 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 Hitachi more accurately as focusing exclusively on Hitachi's fundamentals will not take into account other important factors: Hitachi Total Value Analysis
Hitachi is currently forecasted to have takeover price of 57.3 B with market capitalization of 43.31 B, debt of 1.56 T, and cash on hands of 10.23 B. 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 Hitachi fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
57.3 B | 43.31 B | 1.56 T | 10.23 B |
Hitachi Investor Information
About 41.0% of the company shares are owned by institutional investors. The company has price-to-book (P/B) ratio of 1.36. Some equities with similar Price to Book (P/B) outperform the market in the long run. Hitachi last dividend was issued on the 29th of September 2022. The entity had 1:5 split on the 27th of June 2024. Based on the key indicators obtained from Hitachi's historical financial statements, Hitachi is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.Hitachi Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Hitachi has an asset utilization ratio of 73.91 percent. This implies that the Company is making €0.74 for each dollar of assets. An increasing asset utilization means that Hitachi is more efficient with each dollar of assets it utilizes for everyday operations.Hitachi Ownership Allocation
Hitachi has a total of 907.34 Million outstanding shares. 30% of Hitachi outstanding shares are owned by outside corporations. 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 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.Hitachi Profitability Analysis
The company reported the revenue of 10.26 T. Net Income was 583.47 B with profit before overhead, payroll, taxes, and interest of 2.56 T.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Hitachi's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Hitachi and how it compares across the competition.
About Hitachi Valuation
The stock valuation mechanism determines Hitachi's current worth on a weekly basis. Our valuation model uses a comparative analysis of Hitachi. We calculate exposure to Hitachi's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Hitachi's related companies.Hitachi, Ltd. provides information and telecommunication systems, social infrastructure and industrial systems, electronic systems and equipment, construction machinery, high functional materials and components, automotive systems, smart life and ecofriendly systems, other products, and financial services in Japan and internationally. The company was founded in 1910 and is headquartered in Tokyo, Japan. HITACHI LTD operates under Conglomerates classification in Germany and is traded on Frankfurt Stock Exchange. It employs 295941 people.
8 Steps to conduct Hitachi's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Hitachi's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Hitachi's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Hitachi's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Hitachi's revenue streams: Identify Hitachi's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Hitachi's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Hitachi's growth potential: Evaluate Hitachi's management, business model, and growth potential.
- Determine Hitachi's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Hitachi's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Complementary Tools for Hitachi Stock analysis
When running Hitachi's price analysis, check to measure Hitachi'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 Hitachi is operating at the current time. Most of Hitachi's value examination focuses on studying past and present price action to predict the probability of Hitachi's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Hitachi's price. Additionally, you may evaluate how the addition of Hitachi to your portfolios can decrease your overall portfolio volatility.
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