Velan Valuation
| VLNSF Stock | USD 7.44 0.06 0.81% |
At this time, the company appears to be overvalued. Velan Inc has a current Real Value of $5.88 per share. The regular price of the company is $7.44. Our model measures the value of Velan Inc from inspecting the company fundamentals such as Return On Equity of -0.0824, shares outstanding of 6.02 M, and Operating Margin of 0.07 % as well as reviewing its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Velan's price fluctuation is moderately volatile at this time. Calculation of the real value of Velan Inc is based on 3 months time horizon. Increasing Velan'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 Velan pink sheet is determined by what a typical buyer is willing to pay for full or partial control of Velan Inc. Since Velan is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Velan Pink Sheet. However, Velan'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 7.44 | Real 5.88 | Hype 7.44 | Naive 7.38 |
The real value of Velan Pink Sheet, also known as its intrinsic value, is the underlying worth of Velan Inc Company, which is reflected in its stock price. It is based on Velan's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Velan'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 Velan Inc helps investors to forecast how Velan pink sheet's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Velan more accurately as focusing exclusively on Velan's fundamentals will not take into account other important factors: Velan Total Value Analysis
Velan Inc is at this time projected to have takeover price of 88.01 M with market capitalization of 204.3 M, debt of 22.93 M, and cash on hands of 48.11 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 Velan fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
88.01 M | 204.3 M | 22.93 M | 48.11 M |
Velan Investor Information
About 29.0% of the company outstanding shares are owned by insiders. The company has Price to Book (P/B) ratio of 0.53. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. Velan Inc recorded a loss per share of 0.98. The entity last dividend was issued on the 16th of June 2022. Based on the analysis of Velan's profitability, liquidity, and operating efficiency, Velan Inc is not in a good financial situation at this time. It has a very high probability of going through financial hardship in January.Velan Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Velan has an asset utilization ratio of 80.89 percent. This implies that the Company is making $0.81 for each dollar of assets. An increasing asset utilization means that Velan Inc is more efficient with each dollar of assets it utilizes for everyday operations.Velan Ownership Allocation
The market capitalization of Velan is $204.3 Million. Velan Inc maintains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Note, that even with negative profits, if the true value of the company is larger than the current market value, you may still be able to generate positive returns on investment in this company.Velan Profitability Analysis
The company reported the revenue of 411.24 M. Net Loss for the year was (21.14 M) with profit before overhead, payroll, taxes, and interest of 133.83 M.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Velan'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 Velan and how it compares across the competition.
About Velan Valuation
The pink sheet valuation mechanism determines Velan's current worth on a weekly basis. Our valuation model uses a comparative analysis of Velan. We calculate exposure to Velan's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Velan's related companies.Velan Inc. designs, manufactures, and markets industrial valves worldwide. Velan Inc. was founded in 1950 and is headquartered in Montral, Canada. Velan operates under Specialty Industrial Machinery classification in the United States and is traded on OTC Exchange. It employs 1658 people.
8 Steps to conduct Velan's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Velan'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 Velan's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Velan's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Velan's revenue streams: Identify Velan's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Velan's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Velan's growth potential: Evaluate Velan's management, business model, and growth potential.
- Determine Velan'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 Velan's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Velan Growth Indicators
Investing in growth stocks can be very risky. If the company such as Velan 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 | 21.6 M | |
| Quarterly Earnings Growth Y O Y | -0.392 | |
| Retained Earnings | 218 M |
Complementary Tools for Velan Pink Sheet analysis
When running Velan's price analysis, check to measure Velan'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 Velan is operating at the current time. Most of Velan's value examination focuses on studying past and present price action to predict the probability of Velan's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Velan's price. Additionally, you may evaluate how the addition of Velan to your portfolios can decrease your overall portfolio volatility.
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