Carvana Stock Valuation

CVNA -  USA Stock  

USD 33.57  0.69  2.10%

Do you wonder what the value of Carvana Co Cl is? 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 Carvana Co, is its stock price multiplied by the total number of shares outstanding, calculating Carvana Co's enterprise value requires a different approach. It uses Carvana Co's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current year Tangible Asset Value is expected to grow to about 7.6 B, whereas Free Cash Flow is forecasted to decline to (3.2 B).
Carvana Co Cl shows a prevailing Real Value of $117.53 per share. The current price of the firm is $33.57. At this time, the firm appears to be undervalued. Our model approximates the value of Carvana Co Cl from analyzing the firm fundamentals such as Return On Equity of (183.96) %, current valuation of 11.28 B, and Profit Margin of (2.55) % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor taking in undervalued instruments and trading overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
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Carvana Co 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 Carvana Co's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 33.57
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Please note that Carvana Co's price fluctuation is very steady at this time. Calculation of the real value of Carvana Co Cl is based on 3 months time horizon. Increasing Carvana Co's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Carvana Co Cl is useful when determining the fair value of the Carvana stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Carvana Co. Since Carvana Co is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Carvana Stock. However, Carvana Co'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.
117.53
Real Value
126.16
Upside
Estimating the potential upside or downside of Carvana Co Cl helps investors to forecast how Carvana 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 Carvana Co more accurately as focusing exclusively on Carvana Co's fundamentals will not take into account other important factors:
Earnings
Estimates (12)
LowProjected EPSHigh
-2.07-1.42-1.15
Details
Hype
Prediction
LowEstimated ValueHigh
17.1025.7334.36
Details
Naive
Forecast
LowNext ValueHigh
22.5531.1939.82
Details
21 Analysts
Consensus
LowTarget PriceHigh
260.00370.75470.00
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 Carvana Co's intrinsic value based on its ongoing forecasts of Carvana Co's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Carvana Co's closest peers. When choosing an evaluation method for Carvana Co Cl, 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.

Carvana Co Investments

796.26 Million

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Carvana Valuation Drivers Correlation

Many accounts on the financial statements of Carvana Co Cl are highly interrelated and sometimes correlated. Consequently, when conducting Carvana'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 Carvana
Click cells to compare fundamentals

Carvana Valuation Trend

Knowing Carvana Co's actual value is paramount for traders to make sound investment determinations. Carvana Co's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Carvana Co's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Carvana Co'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.

Carvana Market Cap

Carvana Co Cl is rated third in market capitalization category among related companies. Market capitalization of Internet Retail industry is currently estimated at about 77.48 Billion. Carvana Co holds roughly 5.96 Billion in market capitalization claiming about 8% of equities under Internet Retail industry.
Capitalization  Valuation  Revenue  Total debt  Workforce

Carvana Co Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Carvana Co's current stock value. Our valuation model uses many indicators to compare Carvana Co value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Carvana Co competition to find correlations between indicators driving Carvana Co's intrinsic value. More Info.
Carvana Co Cl is rated third in price to book category among related companies. It is rated second in beta category among related companies totaling about  0.31  of Beta per Price to Book. The ratio of Price to Book to Beta for Carvana Co Cl is roughly  3.26 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Carvana Co by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Carvana Co'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 Carvana Co'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 Carvana Co'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 Carvana Co and how it compares across the competition.

About Carvana Co Valuation

The equity valuation mechanism determines the current worth of Carvana Co Cl on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Carvana Co Cl. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Carvana Co Cl based exclusively on its fundamental and basic technical indicators. By analyzing Carvana Co'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 Carvana Co'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 Carvana Co. We calculate exposure to Carvana Co's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Carvana Co's related companies.
Last ReportedProjected for 2022
Gross Profit1.9 B2.1 B
Profit Margin(0.011) (0.0118) 
Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Carvana Co. was founded in 2012 and is headquartered in Tempe, Arizona. Carvana Co operates under Internet Retail classification in the United States and is traded on New York Stock Exchange. It employs 21000 people.

Carvana Co Quarterly Enterprise Value

25.78 Billion

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Carvana Co 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 Carvana Co 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 Ratio0.23
Revenue Growth55.80%
Enterprise Value To Ebitda-34.61
Enterprise Value To Revenue0.80

Carvana Co Current Valuation Indicators

Valuation refers to the process of determining the present value of Carvana Co Cl and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Carvana we look at many different elements of the entity such as Carvana's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Carvana Co'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 Carvana Co'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 Carvana Co, 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 Carvana Co'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 Carvana Co's worth.
Continue to Trending Equities. Note that the Carvana Co Cl information on this page should be used as a complementary analysis to other Carvana Co'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 Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

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When running Carvana Co Cl price analysis, check to measure Carvana Co'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 Carvana Co is operating at the current time. Most of Carvana Co's value examination focuses on studying past and present price action to predict the probability of Carvana Co's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Carvana Co's price. Additionally, you may evaluate how the addition of Carvana Co to your portfolios can decrease your overall portfolio volatility.
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Is Carvana Co'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 Carvana Co. If investors know Carvana 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 Carvana Co 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 Carvana Co Cl is measured differently than its book value, which is the value of Carvana that is recorded on the company's balance sheet. Investors also form their own opinion of Carvana Co's value that differs from its market value or its book value, called intrinsic value, which is Carvana Co'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 Carvana Co's market value can be influenced by many factors that don't directly affect Carvana Co'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 Carvana Co's value and its price as these two are different measures arrived at by different means. Investors typically determine Carvana Co value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Carvana Co'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.