Timken Company Stock Current Valuation
| TKR Stock | USD 76.55 1.17 1.51% |
Valuation analysis of Timken Company helps investors to measure Timken's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. As of 11/28/2024, Enterprise Value is likely to grow to about 8.2 B, while Enterprise Value Over EBITDA is likely to drop 4.93. Fundamental drivers impacting Timken's valuation include:
Price Book 1.8298 | Enterprise Value 7.3 B | Enterprise Value Ebitda 9.0031 | Price Sales 1.173 | Forward PE 11.3895 |
Fairly Valued
Today
Please note that Timken's price fluctuation is very steady at this time. Calculation of the real value of Timken Company is based on 3 months time horizon. Increasing Timken'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 Timken stock is determined by what a typical buyer is willing to pay for full or partial control of Timken Company. Since Timken is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Timken Stock. However, Timken'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 76.55 | Real 77.65 | Target 89.78 | Hype 76.3 |
The intrinsic value of Timken'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, news, and other external factors that may influence Timken's 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 Timken Company helps investors to forecast how Timken 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 Timken more accurately as focusing exclusively on Timken's fundamentals will not take into account other important factors: Timken Company Company Current Valuation Analysis
Timken's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Timken Current Valuation | 7.32 B |
Most of Timken's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Timken Company is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Timken Current Valuation Driver Correlations
Understanding the fundamental principles of building solid financial models for Timken is extremely important. It helps to project a fair market value of Timken Stock properly, considering its historical fundamentals such as Current Valuation. Since Timken's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Timken's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Timken's interrelated accounts and indicators.
Click cells to compare fundamentals
Timken Current Valuation Historical Pattern
Today, most investors in Timken Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Timken's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's current valuation growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Timken current valuation as a starting point in their analysis.
Timken Current Valuation |
| Timeline |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, Timken Company has a Current Valuation of 7.32 B. This indicator is about the same for the Machinery average (which is currently at 7.28 B) sector and 9.27% higher than that of the Industrials industry. The current valuation for all United States stocks is 55.99% higher than that of the company.
Timken Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Timken's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Timken could also be used in its relative valuation, which is a method of valuing Timken by comparing valuation metrics of similar companies.Timken is currently under evaluation in current valuation category among its peers.
Timken Current Valuation Drivers
We derive many important indicators used in calculating different scores of Timken from analyzing Timken's financial statements. These drivers represent accounts that assess Timken's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Timken's important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 4.3B | 5.8B | 5.3B | 5.2B | 5.7B | 6.0B | |
| Enterprise Value | 5.9B | 7.2B | 6.5B | 6.9B | 7.8B | 8.2B |
Timken ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Timken's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Timken's managers, analysts, and investors.Environmental | Governance | Social |
Timken Fundamentals
| Return On Equity | 0.13 | ||||
| Return On Asset | 0.0559 | ||||
| Profit Margin | 0.07 % | ||||
| Operating Margin | 0.12 % | ||||
| Current Valuation | 7.32 B | ||||
| Shares Outstanding | 70.12 M | ||||
| Shares Owned By Insiders | 10.56 % | ||||
| Shares Owned By Institutions | 86.64 % | ||||
| Number Of Shares Shorted | 1.23 M | ||||
| Price To Earning | 14.32 X | ||||
| Price To Book | 1.83 X | ||||
| Price To Sales | 1.17 X | ||||
| Revenue | 4.77 B | ||||
| Gross Profit | 1.28 B | ||||
| EBITDA | 657.1 M | ||||
| Net Income | 394.1 M | ||||
| Cash And Equivalents | 331.6 M | ||||
| Cash Per Share | 4.14 X | ||||
| Total Debt | 2.5 B | ||||
| Debt To Equity | 0.86 % | ||||
| Current Ratio | 2.03 X | ||||
| Book Value Per Share | 41.83 X | ||||
| Cash Flow From Operations | 545.2 M | ||||
| Short Ratio | 1.97 X | ||||
| Earnings Per Share | 4.82 X | ||||
| Price To Earnings To Growth | 0.95 X | ||||
| Target Price | 87.0 | ||||
| Number Of Employees | 19 K | ||||
| Beta | 1.43 | ||||
| Market Capitalization | 5.39 B | ||||
| Total Asset | 6.54 B | ||||
| Retained Earnings | 2.23 B | ||||
| Working Capital | 1.16 B | ||||
| Current Asset | 1.21 B | ||||
| Current Liabilities | 505.3 M | ||||
| Annual Yield | 0.02 % | ||||
| Five Year Return | 2.15 % | ||||
| Net Asset | 6.54 B | ||||
| Last Dividend Paid | 1.34 |
About Timken Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Timken Company's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Timken using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Timken Company based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Timken
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 Timken 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 Timken will appreciate offsetting losses from the drop in the long position's value.Moving together with Timken Stock
Moving against Timken Stock
| 0.71 | KMT | Kennametal | PairCorr |
| 0.69 | RBC | RBC Bearings | PairCorr |
| 0.66 | DIST | Distoken Acquisition | PairCorr |
| 0.6 | AL | Air Lease | PairCorr |
| 0.56 | R | Ryder System | PairCorr |
The ability to find closely correlated positions to Timken could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Timken 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 Timken - 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 Timken Company to buy it.
The correlation of Timken is a statistical measure of how it moves in relation to other instruments. 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 Timken moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Timken Company 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 Timken 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.Additional Tools for Timken Stock Analysis
When running Timken's price analysis, check to measure Timken'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 Timken is operating at the current time. Most of Timken's value examination focuses on studying past and present price action to predict the probability of Timken's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Timken's price. Additionally, you may evaluate how the addition of Timken to your portfolios can decrease your overall portfolio volatility.