CF Industries Holdings Inc (NYSE:CF) recently experienced a daily gain of 1.26%, and a commendable 3-month gain of 22.41%. With an Earnings Per Share (EPS) of 12.08, the question arises: Is the stock fairly valued? This article provides a comprehensive valuation analysis of CF Industries Holdings, encouraging readers to delve into the financial intricacies of the company.
Introduction to CF Industries Holdings
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CF 30-Year Financial Data
The intrinsic value of CF
CF Industries is a leading producer and distributor of nitrogen fertilizers, operating seven nitrogen facilities in North America and holding joint venture interests in further production capacity in the United Kingdom and Trinidad and Tobago. The company primarily uses low-cost U.S. natural gas as its feedstock, positioning CF as one of the lowest-cost nitrogen producers globally. CF Industries is also investing in carbon-free blue and geen ammonia, an alternative fuel to hydrogen or a means to transport hydrogen.
With a stock price of $87.03 and a GF Value of $86.59, CF Industries Holdings appears to be fairly valued. This comparison between the stock price and the GF Value, an estimation of fair value, paves the way for a more profound exploration of the company’s value, ingeniously integrating financial assessment with essential company details.
CF Industries Holdings (CF): A Comprehensive Analysis of Its Market Value
CF Industries Holdings (CF): A Comprehensive Analysis of Its Market Value
Understanding the GF Value
The GF Value represents the current intrinsic value of a stock, derived from GuruFocus’ exclusive method. The GF Value Line on our summary page provides an overview of the fair value at which the stock should ideally be traded. This is calculated based on three factors:
Historical multiples (PE Ratio, PS Ratio, PB Ratio, and Price-to-Free-Cash-Flow) at which the stock has traded.
GuruFocus adjustmen factor based on the company’s past returns and growth.
Future estimates of the business performance.
CF Industries Holdings’ stock shows every sign of being fairly valued based on the GuruFocus Value calculation. At its current price of $87.03 per share, CF Industries Holdings has a market cap of $16.80 billion and the stock shows every sign of being fairly valued. Because CF Industries Holdings is fairly valued, the long-term return of its stock is likely to be close to the rate of its business growth.