Catalent Valuation

CTLT Stock  USD 57.98  0.16  0.28%   
At this time, the firm appears to be overvalued. Catalent shows a prevailing Real Value of $55.58 per share. The current price of the firm is $57.98. Our model approximates the value of Catalent from analyzing the firm fundamentals such as Profit Margin of (0.32) %, return on equity of -0.3, and Current Valuation of 15.08 B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor acquiring undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting Catalent's valuation include:
Price Book
2.7912
Enterprise Value
15.1 B
Enterprise Value Ebitda
(12.50)
Price Sales
2.5592
Forward PE
69.9301
Catalent Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Catalent's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Tangible Asset Value is likely to gain to about 8.4 B in 2024, whereas Free Cash Flow is likely to drop (290 M) in 2024.
Overvalued
Today
57.98
Please note that Catalent's price fluctuation is very steady at this time. Calculation of the real value of Catalent is based on 3 months time horizon. Increasing Catalent's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Catalent is useful when determining the fair value of the Catalent stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Catalent. Since Catalent is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Catalent Stock. However, Catalent'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  57.98 Real  55.58 Target  48.6 Hype  57.1
The real value of a stock, also known as the intrinsic value, is the underlying worth of a company that is reflected in its stock price. It is based on the company's financial performance, assets, liabilities, growth prospects, management team, industry conditions, and other relevant factors. The real value of a stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, price-to-book ratio, and other valuation metrics. The real value of a stock 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 the stock's price. It is important to note that the real value of a stock is not a fixed number and may change over time based on changes in the company's performance and other relevant factors.
55.58
Real Value
58.27
Upside
Estimating the potential upside or downside of Catalent helps investors to forecast how Catalent 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 Catalent more accurately as focusing exclusively on Catalent's fundamentals will not take into account other important factors:
Earnings
Estimates (7)
LowProjectedHigh
-0.1-0.06-0.03
Details
Hype
Prediction
LowEstimatedHigh
54.4157.1059.79
Details
13 Analysts
Consensus
LowTarget PriceHigh
40.0048.6058.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Catalent's intrinsic value based on its ongoing forecasts of Catalent's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Catalent's closest peers. When choosing an evaluation method for Catalent, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Catalent Investments

100.18 Million

Catalent Valuation Drivers Correlation

Many accounts on the financial statements of Catalent are highly interrelated and sometimes correlated. Consequently, when conducting Catalent's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Catalent
Click cells to compare fundamentals

Catalent Valuation Trend

Knowing Catalent's actual value is paramount for traders to make sound investment determinations. Catalent's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Catalent's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Catalent's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Catalent Market Cap

Catalent is rated second in market capitalization category among related companies. Market capitalization of Health Care industry is currently estimated at about 56.47 Billion. Catalent retains roughly 10.51 Billion in market capitalization claiming about 19% of equities under Health Care industry.
Capitalization  Workforce  Total debt  Revenue  Valuation

Catalent Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Catalent's current stock value. Our valuation model uses many indicators to compare Catalent value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Catalent competition to find correlations between indicators driving Catalent's intrinsic value. More Info.
Catalent is rated below average in price to book category among related companies. It is rated third in price to earning category among related companies reporting about  6.38  of Price To Earning per Price To Book. Earnings Before Interest Taxes and Depreciation Amortization EBITDA is likely to gain to about 469.7 M in 2024, whereas Price to Earnings Ratio is likely to drop (28.21) in 2024.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Catalent by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Catalent's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Catalent's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Catalent'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 Catalent and how it compares across the competition.

About Catalent Valuation

The stock valuation mechanism determines the current worth of Catalent on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Catalent. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Catalent based exclusively on its fundamental and basic technical indicators. By analyzing Catalent's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Catalent's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Catalent. We calculate exposure to Catalent's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Catalent's related companies.
Last ReportedProjected for 2024
Gross Profit1.2 B1.1 B
Profit Margin(0.07)(0.07)

Catalent Quarterly Retained Earnings

(703 Million)

8 Steps to conduct Catalent's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Catalent'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 Catalent's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Catalent's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Catalent's revenue streams: Identify Catalent's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Catalent's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Catalent's growth potential: Evaluate Catalent's management, business model, and growth potential.
  • Determine Catalent'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 Catalent's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

Catalent Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Catalent 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 Outstanding181 M
Quarterly Earnings Growth Y O Y-0.154
Forward Price Earnings69.9301

Catalent Current Valuation Indicators

Valuation refers to the process of determining the present value of Catalent and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Catalent we look at many different elements of the entity such as Catalent's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Catalent's valuation analysis is also 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 Catalent's 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 Catalent, 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 Catalent's 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 Catalent's worth.
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

Complementary Tools for Catalent Stock analysis

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.
Please note, there is a significant difference between Catalent's value and its price as these two are different measures arrived at by different 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.