Ratio Formula –stock is overvalued or undervalued

jagguarpaw January 17, 2017 0 Comments

Question: Ratio Formula –stock is overvalued or undervalued…

 

Ratio Formula 2012 2013 2014 2015
Net profit margin (Net income ÷ Revenue) 18.8% 18.3% 15.4% 16.6%
Net Income 9,019 8,584 7,098 7,351
Revenue 48,017 46,854 45,998 44,294
Return on equity (Net income / shareholders’ equity) 27.2% 25.7% 23.2% 28.5%
Shareholders’ Equity 33,168 33,440 30,561 25,764
Price/Earnings Ratio (Market Value per Share / EPS) 58.5 70.6 88.9 89.3
Market Value per Share 117 137 144 151
EPS 2.00 1.94 1.62 1.69
Dividend payout ratio (Dividend per share / EPS) 51.0% 57.7% 75.3% 78.1%
DPS 1.02 1.12 1.22 1.32

Question 1:

Based on the above-given ratio, can you tell whether the stock is overvalued or undervalued?

—————————————————————————————————————————————————————————————————————————————————————————-

Ratio Formula 2012 2013 2014 2015
Net profit margin (Net income ÷ Revenue) 9.4% 10.1% 9.8% 8.6%
Net Income 6,178 6,740 6,513 5,452
Revenue 65,492 66,415 66,683 63,056
Return on equity (Net income / shareholders’ equity) 27.6% 27.6% 37.1% 45.3%
Shareholders’ Equity 22,399 24,389 17,548 12,030
Price/Earnings Ratio (Market Value per Share / EPS) 17.2 18.9 22.1 26.1
Market Value per Share 68.02 82.71 95.26 96.94
EPS 3.96 4.37 4.31 3.71
Dividend payout ratio (Dividend per share / EPS) 53.8% 51.3% 58.7% 74.4%
DPS 2.13 2.24 2.53 2.76

Question 2:

Based on the above-given ratio, can you tell whether the stock is overvalued or undervalued?

————————————————————————————————————————————————————————————————————————————————————————–

Ratio Formula 2012 2013 2014 2015
Net profit margin (Net income ÷ Revenue) 10.5% 10.4% 11.5% 12.2%
Net Income 629 624 703 764
Revenue 5,995 5,997 6,121 6,282
Return on equity (Net income / shareholders’ equity) 27.6% 27.4% 30.6% 35.0%
Shareholders’ Equity 2,280 2,277 2,294 2,183
Price/Earnings Ratio (Market Value per Share / EPS) 14.8 15.0 18.9 21.7
Market Value per Share 44.26 46.28 67.93 86.64
EPS 2.99 3.08 3.59 4.00
Dividend payout ratio (Dividend per share / EPS) 45.5% 49.4% 45.7% 48.0%
DPS 1.36 1.52 1.64 1.92

Question 3:

Based on the above-given ratio, can you tell whether the stock is overvalued or undervalued?