Hovnanian Enterprises Valuation
| HOV Stock | USD 139.32 1.24 0.88% |
At this time, the firm appears to be overvalued. Hovnanian Enterprises retains a regular Real Value of $80.23 per share. The prevalent price of the firm is $139.32. Our model calculates the value of Hovnanian Enterprises from evaluating the firm fundamentals such as Current Valuation of 1.78 B, return on asset of 0.0702, and Return On Equity of 0.41 as well as inspecting its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Hovnanian Enterprises' valuation include:
Overvalued
Today
Please note that Hovnanian Enterprises' price fluctuation is very steady at this time. Calculation of the real value of Hovnanian Enterprises is based on 3 months time horizon. Increasing Hovnanian Enterprises' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Hovnanian stock is determined by what a typical buyer is willing to pay for full or partial control of Hovnanian Enterprises. Since Hovnanian Enterprises is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Hovnanian Stock. However, Hovnanian Enterprises' 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 139.32 | Real 80.23 | Target 27.0 | Hype 139.45 |
The intrinsic value of Hovnanian Enterprises' 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 Hovnanian Enterprises' 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 Hovnanian Enterprises helps investors to forecast how Hovnanian 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 Hovnanian Enterprises more accurately as focusing exclusively on Hovnanian Enterprises' 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 Hovnanian Enterprises' intrinsic value based on its ongoing forecasts of Hovnanian Enterprises' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Hovnanian Enterprises' closest peers.
Hovnanian Enterprises Cash |
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Hovnanian Valuation Trend
Analysing the historical paterns of Hovnanian Enterprises' enterprise value and its market capitalization is a good way to estimate and gauge the value of Hovnanian Enterprises over time and is usually enough for investors to make rational market timing decisions.
Hovnanian Revenue by Product
Hovnanian Enterprises Total Value Analysis
Hovnanian Enterprises is currently estimated to have company total value of 1.78 B with market capitalization of 1.04 B, debt of 986.89 M, and cash on hands of 326.2 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 Hovnanian Enterprises fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
1.78 B | 1.04 B | 986.89 M | 326.2 M |
Hovnanian Enterprises Investor Information
About 69.0% of the company shares are owned by institutional investors. The company has price-to-book (P/B) ratio of 1.27. Some equities with similar Price to Book (P/B) outperform the market in the long run. Hovnanian Enterprises has Price/Earnings To Growth (PEG) ratio of 1.22. The entity recorded earning per share (EPS) of 32.05. The firm last dividend was issued on the 29th of March 2019. Hovnanian Enterprises had 1:25 split on the 29th of March 2019. Based on the key indicators related to Hovnanian Enterprises' liquidity, profitability, solvency, and operating efficiency, Hovnanian Enterprises is performing exceptionally good at this time. It has a great probability to report excellent financial results in February.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.1 | 0.0993 |
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| Operating Income | 313.4 M | 298.5 M |
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Hovnanian Enterprises Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Hovnanian Enterprises has an asset utilization ratio of 115.33 percent. This indicates that the Company is making $1.15 for each dollar of assets. An increasing asset utilization means that Hovnanian Enterprises is more efficient with each dollar of assets it utilizes for everyday operations.Hovnanian Enterprises Ownership Allocation
The market capitalization of Hovnanian Enterprises is $1.04 Billion. Over half of Hovnanian Enterprises' 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. Note, that even with substantial debt, if the true value of the firm is larger than the current market value, you may still be able to generate positive returns on investment in this company at some point.Hovnanian Enterprises Profitability Analysis
The company reported the last year's revenue of 3 B. Total Income to common stockholders was 242.01 M with profit before taxes, overhead, and interest of 581.67 M.About Hovnanian Enterprises Valuation
Our relative valuation model uses a comparative analysis of Hovnanian Enterprises. We calculate exposure to Hovnanian Enterprises's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Hovnanian Enterprises's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 692.1 M | 351.4 M | |
| Pretax Profit Margin | 0.12 | 0.13 | |
| Operating Profit Margin | 0.10 | 0.10 | |
| Net Profit Margin | 0.09 | 0.10 | |
| Gross Profit Margin | 0.23 | 0.17 |
Hovnanian Enterprises Growth Indicators
Investing in growth stocks can be very risky. If the company such as Hovnanian Enterprises 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 | 7 M | |
| Quarterly Earnings Growth Y O Y | 0.32 | |
| Forward Price Earnings | 3.7651 |
Hovnanian Enterprises Current Valuation Indicators
Hovnanian Enterprises' 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 Hovnanian Enterprises' 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 Hovnanian Enterprises, 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 Hovnanian Enterprises' 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 Hovnanian Enterprises' worth.Additional Tools for Hovnanian Stock Analysis
When running Hovnanian Enterprises' price analysis, check to measure Hovnanian Enterprises' 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 Hovnanian Enterprises is operating at the current time. Most of Hovnanian Enterprises' value examination focuses on studying past and present price action to predict the probability of Hovnanian Enterprises' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Hovnanian Enterprises' price. Additionally, you may evaluate how the addition of Hovnanian Enterprises to your portfolios can decrease your overall portfolio volatility.