Simply Wall St
5 min read
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If you are wondering whether Ashtrom Group at about ₪80.14 is priced attractively or not, the key question is how that share price lines up with the value of the underlying business.
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The stock has returned 1.4% over the past week, 11.9% over the last month, 10.2% year to date, 32.4% over 1 year, 22.5% over 3 years and 49.4% over 5 years, which may shape how investors think about both upside potential and risk today.
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Recent attention on Ashtrom Group reflects interest in its role within the capital goods space and how investors are assessing its prospects relative to peers. In that context, some shareholders are now more focused on whether the current price fairly reflects its fundamentals.
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Simply Wall St currently gives Ashtrom Group a valuation score of 1 out of 6. Next, we look at how different valuation methods arrive at that result and why an even richer view of value comes from going beyond the headline numbers later in this article.
Ashtrom Group scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
The Dividend Discount Model estimates what a share could be worth by projecting all future dividends, growing them at a steady rate, and discounting them back to today. It is most useful when a company has an ongoing, sustainable dividend profile.
For Ashtrom Group, the model uses a current dividend per share of ₪0.72, a return on equity of 5.09% and a payout ratio of about 34.38%. Simply Wall St applies a long term dividend growth rate of 3.16%, capped from an initial figure of 3.34%, with an expected growth input of 3.34%. These assumptions are plugged into the DDM to calculate the present value of all forecast dividends.
This approach results in an estimated intrinsic value of about ₪8.54 per share. Compared with the current share price of around ₪80.14, the DDM output points to a very large premium, with the stock described as roughly 8 times above the modelled value. On this dividend based yardstick, Ashtrom Group screens as expensive rather than cheap.
Result: OVERVALUED
Our Dividend Discount Model (DDM) analysis suggests Ashtrom Group may be overvalued by 838.2%. Discover 863 undervalued stocks or create your own screener to find better value opportunities.
