Smith & Fair Value
SW
The fair market value of SWBI stock is 9.25 USD. Relative to the market price of 13.52 USD Smith & Wesson Brands is overvalued by 31.6%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Smith & Valuation
Current SWBI share ticker price is 13.52 USD.
The fair value level of 9.25 USD can be considered as an effective entry point for long-term investors to start investing in SWBI stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 32% higher its fair value
Current price is 81% higher its minimum value
Current price is 30% lower its maximum value
Market price:
SWBI stock is overvalued
It means the current price may concern as a Risky Entry Point
Smith & Wesson Brands Inc Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
23.29
2
Median P/E over 5 years
12.28
3
Minimum P/E over 5 years
3.45
4
Earning per share (last 12 months)
0.75 USD
Maximum value
1
x
4
=
17.55 USD
Fair value
2
x
4
=
9.25 USD
Minimum value
3
x
4
=
2.6 USD
Smith & Wesson Brands Inc price metrics
21.2
Annual return (geometric mean)
57.1
Risk (standard deviation) of returns
β
1.0
Beta (volatility compared to market)