Axon Enterprise Inc (AXON, Financial) experienced a daily gain of 3.48% and a 3-month gain of 3.24%. With an Earnings Per Share (EPS) of 1.34, we aim to answer the question: is Axon Enterprise fairly valued? Read on to explore our valuation analysis.
Company Introduction
Axon Enterprise Inc develops, manufactures, and sells conducted energy devices and cloud-based digital evidence management software. Their products are designed for use by law enforcement, corrections, military forces, private security personnel, and private individuals for personal defense. Axon Enterprise operates in two segments: Taser and software & sensors. The company delivers its products worldwide, with most of its revenue generated from the United States.
With a current stock price of $211.23 and a fair value (GF Value) of $220.22, Axon Enterprise (AXON, Financial) appears to be fairly valued. The company has a market cap of $15.80 billion and sales of $1.40 billion. This article provides a comprehensive analysis of Axon Enterprise's intrinsic value.
Understanding GF Value
The GF Value represents the current intrinsic value of a stock, computed using a proprietary method. The GF Value Line provides an overview of the fair value at which the stock should ideally be traded. This value is calculated based on historical trading multiples, a GuruFocus adjustment factor based on past performance and growth, and future business performance estimates.
If the stock price is significantly above the GF Value Line, the stock is overvalued, and its future return is likely to be poor. Conversely, if the price is significantly below the GF Value Line, its future return will likely be higher. The stock of Axon Enterprise (AXON, Financial) appears to be fairly valued according to this calculation.
Given that Axon Enterprise is fairly valued, the long-term return of its stock is likely to be close to the rate of its business growth.
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