Five Below Stock Valuation

FIVE
 Stock
  

USD 142.38  5.00  3.39%   

What is the value of Five Below today? 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 Five Below, is its stock price multiplied by the total number of shares outstanding, calculating Five Below's enterprise value requires a different approach. It uses Five Below's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
As of August 17, 2022, Free Cash Flow is expected to decline to about 36.2 M. In addition to that, Enterprise Value is expected to decline to about 6.3 B.
Five Below shows a prevailing Real Value of $176.68 per share. The current price of the firm is $142.38. At this time, the firm appears to be undervalued. Our model computes the value of Five Below from reviewing the firm fundamentals such as Profit Margin of 9.06 %, shares outstanding of 56.03 M, and Current Valuation of 8.13 B as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we advise purchasing undervalued instruments and exiting overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
  
Five Below 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 Five Below's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Five Below Most Recent Valuation Data

Price Book
7.34
Enterprise Value
8.7 B
Enterprise Value Ebitda
19.5
Price Sales
2.83
Forward PE
29.85
Trailing PE
31.9
Undervalued
Today 142.38
Please note that Five Below's price fluctuation is very steady at this time. Calculation of the real value of Five Below is based on 3 months time horizon. Increasing Five Below's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Five Below is useful when determining the fair value of the Five Below stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Five Below. Since Five Below is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Five Below Stock. However, Five Below'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.
132.64
Downside
176.68
Real Value
180.32
Upside
Estimating the potential upside or downside of Five Below helps investors to forecast how Five Below 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 Five Below more accurately as focusing exclusively on Five Below's fundamentals will not take into account other important factors:
Earnings
Estimates (10)
LowProjected EPSHigh
4.884.955.02
Details
Hype
Prediction
LowEstimated ValueHigh
142.74146.38150.02
Details
Naive
Forecast
LowNext ValueHigh
142.00145.64149.27
Details
16 Analysts
Consensus
LowTarget PriceHigh
205.00237.00300.00
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 Five Below's intrinsic value based on its ongoing forecasts of Five Below's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Five Below's closest peers. When choosing an evaluation method for Five Below, 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.

Five Below Valuation Drivers Correlation

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

Five Below Valuation Trend

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

Five Below Market Cap

Five Below is one of the top stocks in market capitalization category among related companies. Market capitalization of Specialty Retail industry is currently estimated at about 1.66 Trillion. Five Below adds roughly 7.8 Billion in market capitalization claiming only tiny portion of equities listed under Specialty Retail industry.
Capitalization  Workforce  Total debt  Revenue  Valuation

Five Below Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Five Below's current stock value. Our valuation model uses many indicators to compare Five Below value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Five Below competition to find correlations between indicators driving Five Below's intrinsic value. More Info.
Five Below is one of the top stocks in beta category among related companies. It is one of the top stocks in price to book category among related companies fabricating about  5.63  of Price to Book per Beta. The current year Price to Book Value is expected to grow to 9.65. Comparative valuation analysis is a catch-all model that can be used if you cannot value Five Below by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Five Below'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 Five Below'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 Five Below'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 Five Below and how it compares across the competition.

About Five Below Valuation

The stock valuation mechanism determines the current worth of Five Below on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Five Below. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Five Below based exclusively on its fundamental and basic technical indicators. By analyzing Five Below'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 Five Below'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 Five Below. We calculate exposure to Five Below's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Five Below's related companies.
Fiscal Year End
January
Industry
Specialty Retail
Concentration
Specialty Stores
Full Time Employees
6.1 K
Service Category
Specialty Retail
Employer Id Number
75-3000378
Last ReportedProjected for 2022
Gross ProfitB667.5 M
Profit Margin 0.1  0.09 
Five Below, Inc. operates as a specialty value retailer in the United States. Five Below, Inc. was incorporated in 2002 and is headquartered in Philadelphia, Pennsylvania. Five Below operates under Specialty Retail classification in the United States and is traded on NASDAQ Exchange. It employs 6100 people.

Five Below Quarterly Enterprise Value

9.99 Billion

Five Below 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 Five Below 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 Ratio0.52
Earnings Quarterly Growth-34.00%
Revenue Growth7.00%
Enterprise Value To Ebitda18.13
Earnings Growth-33.20%
Enterprise Value To Revenue2.81

Five Below Current Valuation Indicators

Valuation refers to the process of determining the present value of Five Below and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Five Below we look at many different elements of the entity such as Five Below's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Five Below'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 Five Below'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 Five Below, 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 Five Below'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 Five Below's worth.
Please check Investing Opportunities. Note that the Five Below information on this page should be used as a complementary analysis to other Five Below'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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

Complementary Tools for Five Below Stock analysis

When running Five Below price analysis, check to measure Five Below'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 Five Below is operating at the current time. Most of Five Below's value examination focuses on studying past and present price action to predict the probability of Five Below's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Five Below's price. Additionally, you may evaluate how the addition of Five Below to your portfolios can decrease your overall portfolio volatility.
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Is Five Below'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 Five Below. If investors know Five Below 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 Five Below listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.33
Market Capitalization
8.2 B
Quarterly Revenue Growth YOY
0.07
Return On Assets
0.0829
Return On Equity
0.26
The market value of Five Below is measured differently than its book value, which is the value of Five Below that is recorded on the company's balance sheet. Investors also form their own opinion of Five Below's value that differs from its market value or its book value, called intrinsic value, which is Five Below'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 Five Below's market value can be influenced by many factors that don't directly affect Five Below'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 Five Below's value and its price as these two are different measures arrived at by different means. Investors typically determine Five Below value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Five Below'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.