Is Catalent Stock a Good Investment?

Catalent Investment Advice

  CTLT
To provide specific investment advice or recommendations on Catalent stock, we recommend investors consider the following general factors when evaluating Catalent. This will help you to make an informed decision on whether to include Catalent in one of your diversified portfolios:
  • Examine Catalent's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Catalent's leadership team and their track record. Good management can help Catalent navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Pharmaceuticals space and any emerging trends that could impact Catalent's business and its evolving consumer preferences.
  • Compare Catalent's performance and market position to its competitors. Analyze how Catalent is positioned in terms of product offerings, innovation, and market share.
  • Check if Catalent pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Catalent's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Catalent stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Catalent is a good investment.
 
Sell
 
Buy
Strong Buy
Our advice module provides unbiased investment recommendation that can be used to complement current average analyst sentiment on Catalent. Our advice engine provides an advice for the firm potential to grow from the perspective of an investor's risk tolerance and investing horizon. To make sure Catalent is not overpriced, please confirm all Catalent fundamentals, including its revenue, cash flow from operations, working capital, as well as the relationship between the cash per share and number of employees . Given that Catalent has a price to earning of 17.80 X, we suggest you to validate Catalent market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance

SolidDetails

Volatility

Very steadyDetails

Hype Condition

Over hypedDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Actively responds to the marketDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

HoldDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails

Examine Catalent Stock

Researching Catalent's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 100.0% of the company shares are held by institutions such as insurance companies. The book value of Catalent was currently reported as 20.27. The company recorded a loss per share of 7.18. Catalent had not issued any dividends in recent years.
To determine if Catalent is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Catalent's research are outlined below:
The company reported the previous year's revenue of 4.28 B. Net Loss for the year was (256 M) with profit before overhead, payroll, taxes, and interest of 1.04 B.
Catalent has a strong financial position based on the latest SEC filings
Over 100.0% of the company shares are held by institutions such as insurance companies
Latest headline from businesswire.com: CATALENT INVESTOR ALERT by the Former Attorney General of Louisiana Kahn Swick Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Catalent, Inc. - CTLT

Catalent Quarterly Accounts Payable

407 Million

Catalent uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Catalent. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Catalent's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
6th of February 2024
Upcoming Quarterly Report
View
10th of June 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
3rd of September 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
30th of June 2023
Last Financial Announcement
View
Earnings surprises can significantly impact Catalent's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Catalent's investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2023-08-29
2023-06-300.10.09-0.0110 
2017-11-06
2017-09-300.180.210.0316 
2023-11-15
2023-09-30-0.14-0.10.0428 
2015-11-03
2015-09-300.210.16-0.0523 
2020-11-03
2020-09-300.370.430.0616 
2014-11-13
2014-09-300.20.13-0.0735 
2021-05-04
2021-03-310.740.820.0810 
2021-02-02
2020-12-310.550.630.0814 

Catalent's SEC filings

Before you invest in Catalent, make sure you check Catalent'srecent SEC filings. These artifacts are important regulatory documents required of all public companies to provide to potential investors. Catalent prospectus issued under the guidelines of the SEC is a legal declaration of facts and statements to ensure that Catalent investors are not misled. SEC filings are required by law to meet strict transparency standards and other important legal constraints. Although many companies may choose careful wording to disguise some material information, SEC filings make crucial Catalent's specific information freely available to individual and institutional investors to make a timely investment decision.
14th of February 2024
Unclassified Corporate Event
View
12th of February 2024
Other Events. Unclassified Corporate Event
View
9th of February 2024
Financial Statements and Exhibits. Unclassified Corporate Event. Results of Operations and Financial Condition
View
11th of September 2023
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
View

Catalent Target Price Consensus

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Catalent target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Catalent's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
Number of Opinions13
Lowered Outlook0
Raized Outlook0
Hold
Most Catalent analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Catalent stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Catalent, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice   Exposure   Valuation

Catalent Target Price Projection

Catalent's current and average target prices are 57.98 and 48.60, respectively. The current price of Catalent is the price at which Catalent is currently trading. On the other hand, Catalent's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Catalent Market Quote on 20th of February 2024

Low Price57.67Odds
High Price58.26Odds

57.98

Target Price

Analyst Consensus On Catalent Target Price

Low Estimate40.0Odds
High Estimate58.0Odds
Number of Analysts10
Standard Deviation6.363

48.6

Historical Lowest Forecast  40.0 Target Price  48.6 Highest Forecast  58.0
Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Catalent and the information provided on this page.

Catalent Analyst Ratings

Catalent's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Catalent stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Catalent's financials, market performance, and future outlook by experienced professionals. Catalent's historical ratings below, therefore, can serve as a valuable tool for investors.

Know Catalent's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Catalent is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Catalent backward and forwards among themselves. Catalent's institutional investor refers to the entity that pools money to purchase Catalent's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Nomura Holdings Inc2023-09-30
4.3 M
Elliott Investment Management L.p.2023-09-30
M
Geode Capital Management, Llc2023-09-30
M
Ameriprise Financial Inc2023-09-30
3.5 M
Capital Research & Mgmt Co - Division 32023-12-31
M
Amvescap Plc.2023-09-30
2.8 M
Norges Bank2023-12-31
2.6 M
Morgan Stanley - Brokerage Accounts2023-09-30
2.2 M
Northern Trust Corp2023-09-30
2.2 M
Vanguard Group Inc2023-09-30
20.5 M
Capital World Investors2023-12-31
19.1 M
Note, although Catalent's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Catalent's market capitalization trends

The company currently falls under 'Large-Cap' category with a current market capitalization of 10.51 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Catalent's market, we take the total number of its shares issued and multiply it by Catalent's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.

Market Cap

9.95 Billion

Catalent's profitablity analysis

Catalent's profitability indicators refer to fundamental financial ratios that showcase Catalent's ability to generate income relative to its revenue or operating costs. If, let's say, Catalent is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, Catalent's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of Catalent's profitability requires more research than a typical breakdown of Catalent's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.
Last ReportedProjected for 2024
Return on Investment(2.03)(2.08)
Return on Average Assets(0.03)(0.03)
Return on Average Equity(0.05)(0.05)
Return on Invested Capital(0.01)(0.01)
Return on Sales(0.03)(0.03)
The company has Profit Margin (PM) of (0.32) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (0.11) %, which suggests for every $100 dollars of sales, it generated a net operating loss of $0.11.
Determining Catalent's profitability involves analyzing its financial statements and using various financial metrics to determine if Catalent is a good buy. For example, gross profit margin measures Catalent's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Catalent's profitability and make more informed investment decisions.
The data published in Catalent's official financial statements usually reflect Catalent's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Catalent. For example, before you start analyzing numbers published by Catalent accountants, it's critical to develop an understanding of what Catalent's liquidity, profitability, and earnings quality are in the context of the Pharmaceuticals space in which it operates.
Please note, the presentation of Catalent's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Catalent's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Catalent's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Catalent. Please utilize our Beneish M Score to check the likelihood of Catalent's management manipulating its earnings.

Evaluate Catalent's management efficiency

Return on Investment is likely to drop to -2.08 in 2024. Return on Average Assets is likely to drop to -0.03 in 2024. At this time, Catalent's Current Liabilities is comparatively stable as compared to the past year. Tax Liabilities is likely to gain to about 97.7 M in 2024, whereas Total Liabilities is likely to drop slightly above 6 B in 2024. Catalent's management efficiency ratios could be used to measure how well Catalent manages its routine affairs as well as how well it operates its assets and liabilities.
Last ReportedProjected for 2024
Book Value per Share 29.41  31.74 
Enterprise Value over EBIT(72.00)(73.89)
Enterprise Value over EBITDA 53.67  57.91 
Price to Book Value 1.53  1.57 
Tangible Assets Book Value per Share 43.11  35.77 
Enterprise Value14.3 B14.2 B
Tangible Asset Value7.8 B8.4 B
The analysis of Catalent's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Catalent's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Catalent Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Beta
1.204

Basic technical analysis of Catalent Stock

As of the 20th of February, Catalent shows the Downside Deviation of 2.27, mean deviation of 2.12, and Risk Adjusted Performance of 0.2086. Catalent technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to break down and interpolate nineteen technical drivers for Catalent, which can be compared to its rivals. Please confirm Catalent variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if Catalent is priced correctly, providing market reflects its regular price of 57.98 per share. Given that Catalent has jensen alpha of 0.5579, we suggest you to validate Catalent's prevailing market performance to make sure the company can sustain itself at a future point.

Catalent's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Catalent insiders, such as employees or executives, is commonly permitted as long as it does not rely on Catalent's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Catalent insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

Understand Catalent's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Catalent's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider Catalent's intraday indicators

Catalent intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Catalent stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Catalent time-series forecasting models is one of many Catalent's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Catalent's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Catalent Stock media impact

Far too much social signal, news, headlines, and media speculation about Catalent that are available to investors today. That information is available publicly through Catalent media outlets and privately through word of mouth or via Catalent internal channels. However, regardless of the origin, that massive amount of Catalent data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Catalent news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Catalent relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Catalent's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Catalent alpha.

Catalent Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Catalent can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Catalent Historical Investor Sentiment

Investor biases related to Catalent's public news can be used to forecast risks associated with an investment in Catalent. The trend in average sentiment can be used to explain how an investor holding Catalent can time the market purely based on public headlines and social activities around Catalent. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Catalent's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Catalent and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Catalent news discussions. The higher the estimate score, the more favorable the investor's outlook on Catalent.

Catalent Maximum Pain Price across 2024-03-15 Option Contracts

Catalent's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Catalent close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Catalent's options.

Pair Trading with Catalent

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Catalent position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Catalent will appreciate offsetting losses from the drop in the long position's value.

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The ability to find closely correlated positions to Catalent could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Catalent when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Catalent - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Catalent to buy it.
The correlation of Catalent is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Catalent moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Catalent moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Catalent can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether Catalent is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Catalent Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Catalent Stock. Highlighted below are key reports to facilitate an investment decision about Catalent Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Catalent. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis.
For more information on how to buy Catalent Stock please use our How to Invest in Catalent guide.
You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

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When running Catalent's price analysis, check to measure Catalent'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 Catalent is operating at the current time. Most of Catalent's value examination focuses on studying past and present price action to predict the probability of Catalent's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Catalent's price. Additionally, you may evaluate how the addition of Catalent to your portfolios can decrease your overall portfolio volatility.
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Is Catalent's industry 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 Catalent. If investors know Catalent 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 Catalent listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.15)
Earnings Share
(7.18)
Revenue Per Share
22.623
Quarterly Revenue Growth
(0.10)
Return On Assets
(0.01)
The market value of Catalent is measured differently than its book value, which is the value of Catalent that is recorded on the company's balance sheet. Investors also form their own opinion of Catalent's value that differs from its market value or its book value, called intrinsic value, which is Catalent's 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 Catalent's market value can be influenced by many factors that don't directly affect Catalent's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Catalent's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Catalent is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Catalent's 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.