* Note: Prices are in Million (M) USD.
Description:
Equitable Holdings, Inc. is a globally diversified financial services company. The company is headquartered in New York, New York.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $136,755 M
Debt : $4,332 M
EBITDA : $1,861 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Financial services
Industry: Insurance - diversified
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 13.35
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 11 overlapping fiscal years (max 20).Average Free Cash Flow: $-234 M
Average Revenue: $11,661 M
Revenue Converted To Free Cash Flow (%): -2.0%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $12,437 M
Revenue 4 Years Ago (2020-12-31): $12,415 M
Last 5 Years Average Revenue Growth: 0%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $325 M
Share Count 5 Years Ago (2020-12-31): $450 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $6.66
Trailing 12-Month Earnings Per Share (EPS): $1.32
Average Earnings Per Share (EPS): $3.99
Dividend Per Share (DPS): $1
Payout Ratio: 26%
Dividend Yield: 2%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 1, 1 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 10 valid ROE years (max 20).Average ROE: 31.7%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $53
52-Week Low: $37
Threshold Price (15% Above 52-Week Low): $43
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $15,537 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 27 points to above Axa Equitable Holdings Inc (EQH) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• ROE Based PE
35.35 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 6 Years Avg P/E (6.01)
× EPS ($3.99) = $23.98.
Last 6 Years Avg PE 6.01, Fair Value PE 15, Industry Based PE 15, RCFC Based PE 10, ROE Based PE 35.35, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 6 values, average assigned is 16.41. Value-Trades has assined P/E value 16.41. Since an average (Current Year EPS + Next Year EPS) earning per share is $3.99.
The fair value of Axa Equitable Holdings Inc (EQH) stock should be (16.41 x $3.99) = $65.47.
