Big 5 Stock Valuation

BGFV -  USA Stock  

USD 13.18  0.39  3.05%

What is the acquisition price tag of Big 5 Sporting? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Big 5, is its stock price multiplied by the total number of shares outstanding, calculating Big 5's enterprise value requires a different approach. It uses Big 5's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Free Cash Flow is likely to drop to about 44.1 M in 2022. Enterprise Value is likely to drop to about 430.1 M in 2022.
Big 5 Sporting shows a prevailing Real Value of $10.92 per share. The current price of the firm is $13.18. At this time, the firm appears to be overvalued. Our model approximates the value of Big 5 Sporting from analyzing the firm fundamentals such as return on equity of 40.96 %, and Profit Margin of 8.81 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor buying undervalued instruments and disposing overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
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Big 5 Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Big 5's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Overvalued
Today 13.18
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Please note that Big 5's price fluctuation is somewhat reliable at this time. Calculation of the real value of Big 5 Sporting is based on 3 months time horizon. Increasing Big 5's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Big 5 Sporting is useful when determining the fair value of the Big 5 stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Big 5. Since Big 5 is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Big 5 Stock. However, Big 5's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
10.92
Real Value
14.91
Upside
Estimating the potential upside or downside of Big 5 Sporting helps investors to forecast how Big 5 stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Big 5 more accurately as focusing exclusively on Big 5's fundamentals will not take into account other important factors:
Earnings
Estimates (1)
LowProjected EPSHigh
4.504.514.52
Details
Hype
Prediction
LowEstimated ValueHigh
8.0412.0316.02
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.0329680.0333330.033699
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Big 5's intrinsic value based on its ongoing forecasts of Big 5's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Big 5's closest peers. When choosing an evaluation method for Big 5 Sporting, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Big 5 Valuation Drivers Correlation

Many accounts on the financial statements of Big 5 Sporting are highly interrelated and sometimes correlated. Consequently, when conducting Big 5's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Big 5
Click cells to compare fundamentals

Big 5 Valuation Trend

Knowing Big 5's actual value is paramount for traders to make sound investment determinations. Big 5's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Big 5's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Big 5's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Big 5 Market Cap

Big 5 Sporting is rated fourth in market capitalization category among related companies. Market capitalization of Specialty Retail industry is currently estimated at about 20.93 Billion. Big 5 claims roughly 270.63 Million in market capitalization contributing just under 2% to equities listed under Specialty Retail industry.
Capitalization  Total debt  Valuation  Workforce  Revenue

Big 5 Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Big 5's current stock value. Our valuation model uses many indicators to compare Big 5 value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Big 5 competition to find correlations between indicators driving Big 5's intrinsic value. More Info.
Big 5 Sporting is rated third in last dividend paid category among related companies. It is number one stock in price to sales category among related companies fabricating about  0.23  of Price to Sales per Last Dividend Paid. The ratio of Last Dividend Paid to Price to Sales for Big 5 Sporting is roughly  4.35 . Price to Sales Ratio is likely to drop to 0.27 in 2022. Comparative valuation analysis is a catch-all model that can be used if you cannot value Big 5 by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Big 5's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Big 5's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Big 5's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Big 5 and how it compares across the competition.

About Big 5 Valuation

The equity valuation mechanism determines the current worth of Big 5 Sporting on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Big 5 Sporting. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Big 5 Sporting based exclusively on its fundamental and basic technical indicators. By analyzing Big 5's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Big 5's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Big 5. We calculate exposure to Big 5's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Big 5's related companies.
Last ReportedProjected for 2022
Gross Profit435.8 M399.6 M
Profit Margin 0.09  0.0468 
Big 5 Sporting Goods Corporation operates as a sporting goods retailer in the western United States. The company was founded in 1955 and is headquartered in El Segundo, California. Big 5 operates under Specialty Retail classification in the United States and is traded on NASDAQ Exchange. It employs 2400 people.

Big 5 Quarterly Enterprise Value

556.86 Million

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Big 5's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Big 5's value is low or high relative to the company's performance and growth projections. Determining the market value of Big 5 can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Big 5 represents a small ownership stake in the entity. As a stockholder of Big 5, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Big 5 Dividends Analysis For Valuation

Please note that Big 5 has scaled down on payment of dividends at this time. Price to Earnings Ratio is likely to climb to 82.12 in 2022, whereas Accumulated Retained Earnings Deficit are likely to drop slightly above 160.4 M in 2022.
There are various types of dividends Big 5 can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Big 5 shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Big 5 Sporting directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Big 5 pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Big 5 by the value of the dividends paid out.

Big 5 Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Big 5 does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.41
Earnings Quarterly Growth-5.30%
Revenue Growth-5.90%
Payout Ratio23.25%
Enterprise Value To Ebitda3.35
Earnings Growth-5.80%
Enterprise Value To Revenue0.44

Big 5 Current Valuation Indicators

Valuation refers to the process of determining the present value of Big 5 Sporting and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Big 5 we look at many different elements of the entity such as Big 5's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Big 5's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Big 5's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Big 5, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Big 5's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Big 5's worth.
Continue to Trending Equities. Note that the Big 5 Sporting information on this page should be used as a complementary analysis to other Big 5's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

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When running Big 5 Sporting price analysis, check to measure Big 5's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Big 5 is operating at the current time. Most of Big 5's value examination focuses on studying past and present price action to predict the probability of Big 5's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Big 5's price. Additionally, you may evaluate how the addition of Big 5 to your portfolios can decrease your overall portfolio volatility.
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Is Big 5's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Big 5. If investors know Big 5 will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Big 5 listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Big 5 Sporting is measured differently than its book value, which is the value of Big 5 that is recorded on the company's balance sheet. Investors also form their own opinion of Big 5's value that differs from its market value or its book value, called intrinsic value, which is Big 5's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Big 5's market value can be influenced by many factors that don't directly affect Big 5's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Big 5's value and its price as these two are different measures arrived at by different means. Investors typically determine Big 5 value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Big 5's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.