Desktop Metal Valuation
| DM Stock | USD 4.14 0.04 0.98% |
At this time, the firm appears to be overvalued. Desktop Metal shows a prevailing Real Value of $3.24 per share. The current price of the firm is $4.14. Our model computes the value of Desktop Metal from reviewing the firm fundamentals such as Profit Margin of (2.17) %, shares outstanding of 33.34 M, and Current Valuation of 247.32 M as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Desktop Metal's valuation include:
Price Book 1.9079 | Enterprise Value 247.3 M | Enterprise Value Ebitda (1.18) | Price Sales 0.8202 | Enterprise Value Revenue 1.4697 |
Overvalued
Today
Please note that Desktop Metal's price fluctuation is relatively risky at this time. Calculation of the real value of Desktop Metal is based on 3 months time horizon. Increasing Desktop Metal'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 Desktop stock is determined by what a typical buyer is willing to pay for full or partial control of Desktop Metal. Since Desktop Metal is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Desktop Stock. However, Desktop Metal'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 4.14 | Real 3.24 | Target 2.87 | Hype 4.14 |
The intrinsic value of Desktop Metal'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 Desktop Metal'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 Desktop Metal helps investors to forecast how Desktop 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 Desktop Metal more accurately as focusing exclusively on Desktop Metal's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Desktop Metal's intrinsic value based on its ongoing forecasts of Desktop Metal's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Desktop Metal's closest peers.
Desktop Metal Cash |
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Desktop Valuation Trend
Knowing Desktop Metal's actual value is paramount for traders when making sound investment determinations. Using both Desktop Metal's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Desktop Revenue by Product
Desktop Metal Total Value Analysis
Desktop Metal is currently expected to have takeover value of 247.32 M with market capitalization of 138.03 M, debt of 143.95 M, and cash on hands of 76.29 M. Please note that takeover value may be misleading and is a subject to accounting mistakes. We encourage investors to methodically examine all of the Desktop Metal fundamentals before making investment evaluation based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
247.32 M | 138.03 M | 143.95 M | 76.29 M |
Desktop Metal Investor Information
About 38.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 1.91. Some equities with similar Price to Book (P/B) outperform the market in the long run. Desktop Metal recorded a loss per share of 11.26. The entity last dividend was issued on the 11th of January 2019. The firm had 1:10 split on the 11th of June 2024. Based on the analysis of Desktop Metal's profitability, liquidity, and operating efficiency, Desktop Metal is not in a good financial situation at this time. It has a very high probability of going through financial hardship in December.Desktop Metal Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Desktop Metal has an asset utilization ratio of 41.42 percent. This suggests that the Company is making $0.41 for each dollar of assets. An increasing asset utilization means that Desktop Metal is more efficient with each dollar of assets it utilizes for everyday operations.Desktop Metal Ownership Allocation
Desktop Metal holds a total of 33.34 Million outstanding shares. Desktop Metal retains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Desktop Metal Profitability Analysis
The company generated the yearly revenue of 189.7 M. Annual Net Loss to common stockholders was (323.27 M) with gross profit of 20.99 M.About Desktop Metal Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Desktop Metal. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Desktop Metal based exclusively on its fundamental and basic technical indicators. By analyzing Desktop Metal's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Desktop Metal's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Desktop Metal. We calculate exposure to Desktop Metal's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Desktop Metal's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | -10.1 M | -9.6 M | |
| Pretax Profit Margin | (1.72) | (1.81) | |
| Operating Profit Margin | (1.70) | (1.79) | |
| Net Loss | (1.70) | (1.79) | |
| Gross Profit Margin | (0.05) | (0.06) |
Desktop Metal Growth Indicators
Investing in growth stocks can be very risky. If the company such as Desktop Metal 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 Outstanding | 32.2 M |
Desktop Metal Current Valuation Indicators
Desktop Metal's valuation analysis is 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 Desktop Metal'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 Desktop Metal, 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 Desktop Metal'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 Desktop Metal's worth.Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Desktop Metal. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. To learn how to invest in Desktop Stock, please use our How to Invest in Desktop Metal guide.You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Is Electronic Equipment, Instruments & Components space 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 Desktop Metal. If investors know Desktop 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 Desktop Metal listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (11.26) | Revenue Per Share 5.117 | Quarterly Revenue Growth (0.15) | Return On Assets (0.24) | Return On Equity (1.53) |
The market value of Desktop Metal is measured differently than its book value, which is the value of Desktop that is recorded on the company's balance sheet. Investors also form their own opinion of Desktop Metal's value that differs from its market value or its book value, called intrinsic value, which is Desktop Metal'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 Desktop Metal's market value can be influenced by many factors that don't directly affect Desktop Metal'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 Desktop Metal's value and its price as these two are different measures arrived at by different means. Investors typically determine if Desktop Metal is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Desktop Metal'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.