Direct Line Valuation
| DIISY Stock | USD 11.47 0.20 1.71% |
At this time, the firm appears to be overvalued. Direct Line Insurance shows a prevailing Real Value of $8.91 per share. The current price of the firm is $11.47. Our model computes the value of Direct Line Insurance from reviewing the firm fundamentals such as Shares Outstanding of 327.85 M, current valuation of 2.85 B, and Profit Margin of 0.09 % as well as analyzing its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Direct Line's price fluctuation is slightly risky at this time. Calculation of the real value of Direct Line Insurance is based on 3 months time horizon. Increasing Direct Line's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Direct Line is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Direct Pink Sheet. However, Direct Line'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 11.47 | Real 8.91 | Hype 11.47 | Naive 13.53 |
The intrinsic value of Direct Line'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 Direct Line'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 Direct Line Insurance helps investors to forecast how Direct 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 Direct Line more accurately as focusing exclusively on Direct Line's fundamentals will not take into account other important factors: Direct Line Total Value Analysis
Direct Line Insurance is currently projected to have takeover price of 2.85 B with market capitalization of 2.89 B, debt of 513.6 M, and cash on hands of 777.2 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 Direct Line fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
2.85 B | 2.89 B | 513.6 M | 777.2 M |
Direct Line Investor Information
The company has price-to-book (P/B) ratio of 1.08. Some equities with similar Price to Book (P/B) outperform the market in the long run. Direct Line Insurance has Price/Earnings To Growth (PEG) ratio of 1.64. The entity last dividend was issued on the 12th of August 2022. The firm had 916:1000 split on the 30th of June 2015. Based on the measurements of operating efficiency obtained from Direct Line's historical financial statements, Direct Line Insurance is not in a good financial situation at this time. It has a very high probability of going through financial hardship in January.Direct Line Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Direct Line has an asset utilization ratio of 34.85 percent. This suggests that the Company is making $0.35 for each dollar of assets. An increasing asset utilization means that Direct Line Insurance is more efficient with each dollar of assets it utilizes for everyday operations.Direct Line Profitability Analysis
The company reported the revenue of 3.24 B. Net Income was 343.7 M with profit before overhead, payroll, taxes, and interest of 1.25 B.About Direct Line Valuation
Our relative valuation model uses a comparative analysis of Direct Line. We calculate exposure to Direct Line's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Direct Line's related companies.Direct Line Insurance Group plc provides general insurance products and services in the United Kingdom. Direct Line Insurance Group plc was founded in 1985 and is based in Bromley, the United Kingdom. Direct Line operates under InsuranceDiversified classification in the United States and is traded on OTC Exchange. It employs 9786 people.
8 Steps to conduct Direct Line's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Direct Line'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 Direct Line's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Direct Line's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Direct Line's revenue streams: Identify Direct Line's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Direct Line's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Direct Line's growth potential: Evaluate Direct Line's management, business model, and growth potential.
- Determine Direct Line'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 Direct Line's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Direct Line 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.
| Common Stock Shares Outstanding | 1.3 B | |
| Quarterly Earnings Growth Y O Y | -0.28 | |
| Forward Price Earnings | 9.6618 | |
| Retained Earnings | 982.9 M |
Additional Tools for Direct Pink Sheet Analysis
When running Direct Line's price analysis, check to measure Direct Line'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 Direct Line is operating at the current time. Most of Direct Line's value examination focuses on studying past and present price action to predict the probability of Direct Line's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Direct Line's price. Additionally, you may evaluate how the addition of Direct Line to your portfolios can decrease your overall portfolio volatility.