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INVESTING IDEAS

Discover and validate investing ideas with valuation models and charts.

Is IDEXX Laboratories, Inc. (NASDAQGS:IDXX) too expensive at 53.62x EV/EBITDA?

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IDEXX Laboratories, Inc. (NASDAQGS:IDXX) is currently trading at $441.23, at approximately 93.1% of its 52-week high of $485.00. With the stock price up 74.6% in the last year, investors are worried that the company is getting too expensive. So, is IDEXX Laboratories, Inc. overvalued? In this article, we’ll discuss IDEXX Laboratories, Inc.’s valuation using different valuation models.

Historical Valuation

One of the quickest ways to spot if a company is getting too expensive is to compare the current valuation to its historical one. We can use the price to sales ratio to cut the noise and avoid the volatility of the company’s earnings.

Considering IDEXX Laboratories, Inc.’s latest twelve months revenue/share of $30.38 and using the company’s 5-year average price to sales of 8.24x as a benchmark, we have a fair value of $250.32, which is -43.3% lower than the current price.

With no surprise, we can see that IDEXX Laboratories, Inc.’s price to sales of 14.8x is much higher than its 5-year average of 8.2x, indicating that the company is probably trading in overbought territory. We can easily visualize trends in the company’s fundamentals using the Finbox chart editor, as depicted below.

Source: Finbox Chart’s Engine

Absolute Valuation: IDEXX Laboratories, Inc. DCF Analysis

Using a company’s historical valuation as a benchmark could lead to misleading results if a change in its fundamentals justifies the current valuation. So it’s always preferable to take into account the latest financial forecast and analyze the company with an absolute valuation model.

So, let’s analyze IDEXX Laboratories, Inc. with a 5Y DCF analysis (EBITDA exit method). Using the latest 5Y revenue forecast CAGR of 6.6%, an average EBITDA margin forecast of 29.1%, a discount rate of 8.0%, and a terminal EBITDA multiple of 29.2x, we get a fair value of $263.2.

So, Is IDEXX Laboratories, Inc. Overvalued?

Relying only on one or two financial models to determine a company’s fair value is never a good idea. It’s always preferable to use different models before coming to hasty conclusions.

The Finbox Fair Value Estimate is an advanced financial modeling technology that uses eleven different models to estimate the fair value of a stock and lets you get a company’s fair value at your fingertips. All the models are based on the same data utilized by the biggest investment banks and money managers in the world.

According to the estimate, IDEXX Laboratories, Inc.’s fair value is $276.56, representing a -38.5% downside from the current price. Below are the fair value estimates for each model.

Source: Finbox Fair Value Estimates

Company’s Profile: IDEXX Laboratories, Inc.

IDEXX Laboratories, Inc., together with its subsidiaries, develops, manufactures, and distributes products and services primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing markets worldwide. The company operates through Companion Animal Group; Water Quality Products; Livestock, Poultry and Dairy; and Other segments. It provides point-of-care veterinary diagnostic products, including instruments, consumables, and rapid assay test kits; veterinary reference laboratory diagnostic and consulting services; practice management and diagnostic imaging systems and services for veterinarians; and health monitoring, biological materials testing, and laboratory animal diagnostic instruments and services for biomedical research community. The company also offers diagnostic and health-monitoring products for livestock, poultry, and dairy; products that test water for various microbiological contaminants; and point-of-care electrolytes and blood gas analyzers that are used in the human point-of-care medical diagnostics market. It markets its products through marketing, customer service, sales, and technical service groups, as well as through independent distributors and other resellers. IDEXX Laboratories, Inc. was incorporated in 1983 and is headquartered in Westbrook, Maine

Is Intuitive Surgical, Inc. (NASDAQGS:ISRG) overvalued at 83.67x Price To Earnings?

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Intuitive Surgical, Inc. (NASDAQGS:ISRG) is currently trading at $749.50, at approximately 94.7% of its 52-week high of $792.54. With the stock price up 37.6% in the last year, investors are worried that the company is getting too expensive. So, is Intuitive Surgical, Inc. overvalued? In this article, we’ll discuss Intuitive Surgical, Inc.’s valuation using different valuation models.

Historical Valuation

One of the quickest ways to spot if a company is getting too expensive is to compare the current valuation to its historical one. We can use the price to sales ratio to cut the noise and avoid the volatility of the company’s earnings.

Considering Intuitive Surgical, Inc.’s latest twelve months revenue/share of $36.64 and using the company’s 5-year average price to sales of 13.87x as a benchmark, we have a fair value of $508.13, which is -32.2% lower than the current price.

With no surprise, we can see that Intuitive Surgical, Inc.’s price to sales of 20.5x is much higher than its 5-year average of 13.9x, indicating that the company is probably trading in overbought territory. We can easily visualize trends in the company’s fundamentals using the Finbox chart editor, as depicted below.

Source: Finbox Chart’s Engine

Absolute Valuation: Intuitive Surgical, Inc. DCF Analysis

Using a company’s historical valuation as a benchmark could lead to misleading results if a change in its fundamentals justifies the current valuation. So it’s always preferable to take into account the latest financial forecast and analyze the company with an absolute valuation model.

So, let’s analyze Intuitive Surgical, Inc. with a 5Y DCF analysis (EBITDA exit method). Using the latest 5Y revenue forecast CAGR of 10.5%, an average EBITDA margin forecast of 40.8%, a discount rate of 9.0%, and a terminal EBITDA multiple of 28.6x, we get a fair value of $631.0.

So, Is Intuitive Surgical, Inc. Overvalued?

Relying only on one or two financial models to determine a company’s fair value is never a good idea. It’s always preferable to use different models before coming to hasty conclusions.

The Finbox Fair Value Estimate is an advanced financial modeling technology that uses eleven different models to estimate the fair value of a stock and lets you get a company’s fair value at your fingertips. All the models are based on the same data utilized by the biggest investment banks and money managers in the world.

According to the estimate, Intuitive Surgical, Inc.’s fair value is $535.17, representing a -28.6% downside from the current price. Below are the fair value estimates for each model.

Source: Finbox Fair Value Estimates

Company’s Profile: Intuitive Surgical, Inc.

Intuitive Surgical, Inc., together with its subsidiaries, designs, manufactures, and markets da Vinci surgical systems, and related instruments and accessories in the United States and internationally. The company’s da Vinci Surgical System include surgeon’s consoles, patient-side carts, 3-D vision systems, da Vinci skills simulators, da Vinci Xi integrated table motions, and Firefly fluorescence imaging products that enable surgeons to perform various surgical procedures, including gynecologic, urologic, general, cardiothoracic, and head and neck surgical procedures. It also manufactures EndoWrist instruments, such as forceps, scissors, electrocautery tools, scalpels, and other surgical tools, which incorporate wrist joints for natural dexterity for various surgical procedures. In addition, the company offers EndoWrist Stapler, a wristed stapling instrument for resection, transection, and creation of anastomoses; and EndoWrist One Vessel Sealers that are wristed single-use instruments for bipolar coagulation and mechanical transection of vessels up to 7mm in diameter and tissue bundles that fit in the jaws of the instrument. Additionally, the company sells various accessories comprising sterile drapes for ensuring sterile field during surgery; and vision products that include replacement 3D stereo endoscopes, camera heads, light guides, and other items that facilitate use of the da Vinci Surgical System, as well as Ion endoluminal system for biopsies. Intuitive Surgical, Inc. was founded in 1995 and is headquartered in Sunnyvale, California.

Is General Dynamics Corporation (NYSE:GD) Cheap at 13.42x Price To Earnings?

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General Dynamics Corporation (NYSE:GD) is currently trading at $151.31, at approximately 78.5% of its 52-week high of $190.08. With the stock price down -15.5% in the last year, it looks like the company is getting cheap. So, is General Dynamics Corporation undervalued? In this article, we’ll discuss General Dynamics Corporation’s valuation using different valuation models.

Historical Valuation

One of the quickest ways to spot if a company is getting too expensive is to compare the current valuation to its historical one. We can use the price to sales ratio to cut the noise and avoid the volatility of the company’s earnings.

Considering General Dynamics Corporation’s latest twelve months revenue/share of $133.48 and using the company’s 5-year average price to sales of 1.54x as a benchmark, we have a fair value of $205.61, which is 35.9% higher than the current price.

With no surprise, we can see that General Dynamics Corporation’s price to sales of 1.1x is much lower than its 5-year average of 1.5x, indicating that the company is probably trading at a discount to its fair value. We can easily visualize trends in the company’s fundamentals using the Finbox chart editor, as depicted below.

Source: Finbox Chart’s Engine

Absolute Valuation: General Dynamics Corporation DCF Analysis

Using a company’s historical valuation as a benchmark could lead to misleading results if a change in its fundamentals justifies the current valuation. So it’s always preferable to take into account the latest financial forecast and analyze the company with an absolute valuation model.

So, let’s analyze General Dynamics Corporation with a 5Y DCF analysis (EBITDA exit method). Using the latest 5Y revenue forecast CAGR of 2.8%, an average EBITDA margin forecast of 13.7%, a discount rate of 8.0%, and a terminal EBITDA multiple of 11.5x, we get a fair value of $188.1.

So, Is General Dynamics Corporation Undervalued?

Relying only on one or two financial models to determine a company’s fair value is never a good idea. It’s always preferable to use different models before coming to hasty conclusions.

The Finbox Fair Value Estimate is an advanced financial modeling technology that uses eleven different models to estimate the fair value of a stock and lets you get a company’s fair value at your fingertips. All the models are based on the same data utilized by the biggest investment banks and money managers in the world.

According to the estimate, General Dynamics Corporation’s fair value is $181.87, representing a 21.6% upside from the current price. Below are the fair value estimates for each model.

Source: Finbox Fair Value Estimates

Company’s Profile: General Dynamics Corporation

General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through five segments: Aerospace, Combat Systems, Information Technology, Mission Systems, and Marine Systems. The Aerospace segment designs, manufactures, and supports business-jet aircraft; and offers business-aviation services, including maintenance, fixed-base operation, government fleet, aircraft management, charter, and staffing services. The Combat Systems segment engages in the design, development, production, modernization, and sustainment of combat vehicles, weapons systems, and munitions. This segment offers wheeled combat and tactical vehicles; main battle tanks and tracked combat vehicles; weapons systems, armaments, and munitions; and maintenance, logistics support, and sustainment services. The Information Technology segment provides information technology (IT), IT infrastructure modernization, and professional services, as well as cloud, cyber, software development, systems engineering, and data analytics services and solutions. The Mission Systems segment offers mission-critical C4ISR products and systems, such as space, intelligence, and cyber systems; ground systems and products; and naval, air, and electronic systems. The Marine Systems segment designs and builds nuclear-powered submarines, surface combatants, and auxiliary and combat-logistics ships for the United States Navy and Jones Act ships for commercial customers. This segment provides nuclear-powered submarines; surface combatants; auxiliary and combat-logistics ships; commercial product carriers and containerships; design and engineering support services; and maintenance, modernization, and lifecycle support services, as well as repair services for navy ships. The company was founded in 1899 and is headquartered in Reston, Virginia.

Is Exxon Mobil Corporation (NYSE:XOM) undervalued at 0.79x Price To Sales?

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Exxon Mobil Corporation (NYSE:XOM) is currently trading at $36.86, at approximately 51.4% of its 52-week high of $71.37. With the stock price down -43.4% in the last year, it looks like the company is getting cheap. So, is Exxon Mobil Corporation undervalued? In this article, we’ll discuss Exxon Mobil Corporation’s valuation using different valuation models.

Historical Valuation

One of the quickest ways to spot if a company is getting too expensive is to compare the current valuation to its historical one. We can use the price to sales ratio to cut the noise and avoid the volatility of the company’s earnings.

Considering Exxon Mobil Corporation’s latest twelve months revenue/share of $46.32 and using the company’s 5-year average price to sales of 1.33x as a benchmark, we have a fair value of $61.40, which is 66.6% higher than the current price.

With no surprise, we can see that Exxon Mobil Corporation’s price to sales of 0.8x is much lower than its 5-year average of 1.3x, indicating that the company is probably trading at a discount to its fair value. We can easily visualize trends in the company’s fundamentals using the Finbox chart editor, as depicted below.

Source: Finbox Chart’s Engine

Absolute Valuation: Exxon Mobil Corporation DCF Analysis

Using a company’s historical valuation as a benchmark could lead to misleading results if a change in its fundamentals justifies the current valuation. So it’s always preferable to take into account the latest financial forecast and analyze the company with an absolute valuation model.

So, let’s analyze Exxon Mobil Corporation with a 5Y DCF analysis (EBITDA exit method). Using the latest 5Y revenue forecast CAGR of -0.5%, an average EBITDA margin forecast of 15.0%, a discount rate of 9.0%, and a terminal EBITDA multiple of 9.2x, we get a fair value of $82.9.

So, Is Exxon Mobil Corporation Undervalued?

Relying only on one or two financial models to determine a company’s fair value is never a good idea. It’s always preferable to use different models before coming to hasty conclusions.

The Finbox Fair Value Estimate is an advanced financial modeling technology that uses eleven different models to estimate the fair value of a stock and lets you get a company’s fair value at your fingertips. All the models are based on the same data utilized by the biggest investment banks and money managers in the world.

According to the estimate, Exxon Mobil Corporation’s fair value is $46.55, representing a 26.6% upside from the current price. Below are the fair value estimates for each model.

Source: Finbox Fair Value Estimates

Company’s Profile: Exxon Mobil Corporation

Exxon Mobil Corporation explores for and produces crude oil and natural gas in the United States, Canada/other Americas, Europe, Africa, Asia, and Australia/Oceania. It operates through Upstream, Downstream, and Chemical segments. The company is also involved in the manufacture, trade, transport, and sale of crude oil, petroleum products, and other specialty products; and manufactures and markets petrochemicals, including olefins, polyolefins, aromatics, and various other petrochemicals. As of December 31, 2019, it had approximately 23,857 net operated wells with proved reserves of 22.4 billion oil-equivalent barrels. In addition, the company produces raw materials, such as polypropylene and isopropyl alcohol for medical masks, gowns, and hand sanitizer. The company was founded in 1870 and is based in Irving, Texas.

Is Linde plc (NYSE:LIN) Too Expensive at 61.14x Price To Earnings?

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Linde plc (NYSE:LIN) is currently trading at $262.04, at approximately 96.4% of its 52-week high of $269.78. With the stock price up 31.8% in the last year, investors are worried that the company is getting too expensive. So, is Linde plc overvalued? In this article, we’ll discuss Linde plc’s valuation using different valuation models.

Historical Valuation

One of the quickest ways to spot if a company is getting too expensive is to compare the current valuation to its historical one. We can use the price to sales ratio to cut the noise and avoid the volatility of the company’s earnings.

Considering Linde plc’s latest twelve months revenue/share of $51.61 and using the company’s 5-year average price to sales of 4.07x as a benchmark, we have a fair value of $210.30, which is -19.7% lower than the current price.

With no surprise, we can see that Linde plc’s price to sales of 5.1x is much higher than its 5-year average of 4.1x, indicating that the company is probably trading in overbought territory. We can easily visualize trends in the company’s fundamentals using the Finbox chart editor, as depicted below.

Source: Finbox Chart’s Engine

Absolute Valuation: Linde plc DCF Analysis

Using a company’s historical valuation as a benchmark could lead to misleading results if a change in its fundamentals justifies the current valuation. So it’s always preferable to take into account the latest financial forecast and analyze the company with an absolute valuation model.

So, let’s analyze Linde plc with a 5Y DCF analysis (EBITDA exit method). Using the latest 5Y revenue forecast CAGR of 3.5%, an average EBITDA margin forecast of 32.8%, a discount rate of 8.0%, and a terminal EBITDA multiple of 13.8x, we get a fair value of $231.0.

So, Is Linde plc Overvalued?

Relying only on one or two financial models to determine a company’s fair value is never a good idea. It’s always preferable to use different models before coming to hasty conclusions.

The Finbox Fair Value Estimate is an advanced financial modeling technology that uses eleven different models to estimate the fair value of a stock and lets you get a company’s fair value at your fingertips. All the models are based on the same data utilized by the biggest investment banks and money managers in the world.

According to the estimate, Linde plc’s fair value is $204.42, representing a -21.5% downside from the current price. Below are the fair value estimates for each model.

Source: Finbox Fair Value Estimates

Company’s Profile: Linde plc

Linde plc operates as an industrial gas company in North and South America, Europe, the Middle East, Africa, and the Asia Pacific. The company offers oxygen, nitrogen, argon, rare gases, carbon monoxide, carbon dioxide, helium, hydrogen, electronic gases, specialty gases, and acetylene. It also designs and constructs turnkey process plants, such as olefin, natural gas, air separation, and hydrogen and synthesis gas plants. The company serves healthcare, petroleum refining, manufacturing, food, beverage carbonation, fiber-optics, steel making, aerospace, chemicals, and water treatment industries. Linde plc was founded in 1879 and is based in Guildford, the United Kingdom.

Is NextEra Energy, Inc. (NYSE:NEE) overpriced at 8.38x Price To Sales?

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NextEra Energy, Inc. (NYSE:NEE) is currently trading at $75.99, at approximately 92.9% of its 52-week high of $83.34. With the stock price up 39.7% in the last year, investors are worried that the company is getting too expensive. So, is NextEra Energy, Inc. overvalued? In this article, we’ll discuss NextEra Energy, Inc.’s valuation using different valuation models.

Historical Valuation

One of the quickest ways to spot if a company is getting too expensive is to compare the current valuation to its historical one. We can use the price to sales ratio to cut the noise and avoid the volatility of the company’s earnings.

Considering NextEra Energy, Inc.’s latest twelve months revenue/share of $9.28 and using the company’s 5-year average price to sales of 4.77x as a benchmark, we have a fair value of $44.28, which is -41.7% lower than the current price.

With no surprise, we can see that NextEra Energy, Inc.’s price to sales of 8.4x is much higher than its 5-year average of 4.8x, indicating that the company is probably trading in overbought territory. We can easily visualize trends in the company’s fundamentals using the Finbox chart editor, as depicted below.

Source: Finbox Chart’s Engine

Absolute Valuation: NextEra Energy, Inc. DCF Analysis

Using a company’s historical valuation as a benchmark could lead to misleading results if a change in its fundamentals justifies the current valuation. So it’s always preferable to take into account the latest financial forecast and analyze the company with an absolute valuation model.

So, let’s analyze NextEra Energy, Inc. with a 5Y DCF analysis (EBITDA exit method). Using the latest 5Y revenue forecast CAGR of 4.3%, an average EBITDA margin forecast of 60.8%, a discount rate of 7.0%, and a terminal EBITDA multiple of 15.1x, we get a fair value of $82.2.

So, Is NextEra Energy, Inc. Overvalued?

Relying only on one or two financial models to determine a company’s fair value is never a good idea. It’s always preferable to use different models before coming to hasty conclusions.

The Finbox Fair Value Estimate is an advanced financial modeling technology that uses eleven different models to estimate the fair value of a stock and lets you get a company’s fair value at your fingertips. All the models are based on the same data utilized by the biggest investment banks and money managers in the world.

According to the estimate, NextEra Energy, Inc.’s fair value is $60.56, representing a -22.1% downside from the current price. Below are the fair value estimates for each model.

Source: Finbox Fair Value Estimates

Company’s Profile: NextEra Energy, Inc.

NextEra Energy, Inc., through its subsidiaries, generates, transmits, and distributes electric power in North America. The company generates electricity through wind, solar, nuclear, coal, oil, and natural gas facilities. It also develops, constructs, and operates long-term contracted assets with a focus on renewable generation facilities, natural gas pipelines, and battery storage projects; and owns, develops, constructs, manages, and operates electric generation facilities in wholesale energy markets. In addition, the company engages in the energy-related commodity marketing and trading activities. The company was formerly known as FPL Group, Inc. and changed its name to NextEra Energy, Inc. in May 2010. NextEra Energy, Inc. was founded in 1925 and is headquartered in Juno Beach, Florida

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