Aarons Stock Valuation

AAN -  USA Stock  

USD 18.17  0.88  4.62%

What is the current enterprise value of Aarons Holdings? 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 Aarons Holdings, is its stock price multiplied by the total number of shares outstanding, calculating Aarons Holdings' enterprise value requires a different approach. It uses Aarons Holdings' 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 expected to rise to about 59.8 M this year. Enterprise Value is expected to rise to about 1.1 B this year.
Aarons Holdings shows a prevailing Real Value of $23.35 per share. The current price of the firm is $18.17. At this time, the firm appears to be undervalued. Our model approximates the value of Aarons Holdings from analyzing the firm fundamentals such as Profit Margin of 5.23 %, return on equity of 12.94 %, and Current Valuation of 934.92 M as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor picking up undervalued instruments and discarding overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
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Aarons Holdings 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 Aarons Holdings'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 18.17
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Please note that Aarons Holdings' price fluctuation is not too volatile at this time. Calculation of the real value of Aarons Holdings is based on 3 months time horizon. Increasing Aarons Holdings' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Aarons Holdings is useful when determining the fair value of the Aarons stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Aarons Holdings. Since Aarons Holdings is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Aarons Stock. However, Aarons Holdings' 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.
23.35
Real Value
26.35
Upside
Estimating the potential upside or downside of Aarons Holdings helps investors to forecast how Aarons 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 Aarons Holdings more accurately as focusing exclusively on Aarons Holdings' fundamentals will not take into account other important factors:
Earnings
Estimates (7)
LowProjected EPSHigh
3.433.523.60
Details
Hype
Prediction
LowEstimated ValueHigh
15.2718.2721.27
Details
Naive
Forecast
LowNext ValueHigh
14.9517.9420.94
Details
7 Analysts
Consensus
LowTarget PriceHigh
27.0031.8037.00
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 Aarons Holdings' intrinsic value based on its ongoing forecasts of Aarons Holdings' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Aarons Holdings' closest peers. When choosing an evaluation method for Aarons Holdings, 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.

Aarons Valuation Drivers Correlation

Many accounts on the financial statements of Aarons Holdings are highly interrelated and sometimes correlated. Consequently, when conducting Aarons'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 Aarons
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Aarons Valuation Trend

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

Aarons Market Cap

Aarons Holdings is rated fourth in market capitalization category among related companies. Market capitalization of Specialty Retail industry is presently estimated at about 15.76 Billion. Aarons Holdings holds roughly 572.05 Million in market capitalization claiming about 4% of equities listed under Specialty Retail industry.
Capitalization  Revenue  Total debt  Valuation  Workforce

Aarons Holdings Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Aarons Holdings's current stock value. Our valuation model uses many indicators to compare Aarons Holdings value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Aarons Holdings competition to find correlations between indicators driving Aarons Holdings's intrinsic value. More Info.
Aarons Holdings is rated fourth in price to book category among related companies. It is rated second in beta category among related companies totaling about  2.50  of Beta per Price to Book. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Aarons Holdings by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Aarons Holdings' 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 Aarons Holdings' 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 Aarons Holdings' 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 Aarons Holdings and how it compares across the competition.

About Aarons Holdings Valuation

The equity valuation mechanism determines the current worth of Aarons Holdings on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Aarons Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Aarons Holdings based exclusively on its fundamental and basic technical indicators. By analyzing Aarons Holdings'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 Aarons Holdings'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 Aarons Holdings. We calculate exposure to Aarons Holdings's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Aarons Holdings's related companies.
Last ReportedProjected for 2022
Gross Profit1.2 B1.2 B
Profit Margin 0.06  0.06 
The Aarons Company, Inc. provides lease-to-own and purchase solutions. The Aarons Company, Inc. was founded in 1955 and is headquartered in Atlanta, Georgia. Aarons Holdings operates under Specialty Retail classification in the United States and is traded on New York Stock Exchange. It employs 9170 people.

Aarons Holdings Quarterly Enterprise Value

919.05 Million

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Aarons Holdings 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 Aarons Holdings 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 Ratio0.18
Earnings Quarterly Growth-40.70%
Revenue Growth-5.20%
Payout Ratio14.22%
Enterprise Value To Ebitda1.16
Earnings Growth-34.60%
Enterprise Value To Revenue0.51

Aarons Holdings Current Valuation Indicators

Valuation refers to the process of determining the present value of Aarons Holdings and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Aarons we look at many different elements of the entity such as Aarons's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Aarons Holdings' 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 Aarons Holdings' 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 Aarons Holdings, 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 Aarons Holdings' 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 Aarons Holdings' worth.
Please continue to Trending Equities. Note that the Aarons Holdings information on this page should be used as a complementary analysis to other Aarons Holdings' 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 Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

Complementary Tools for Aarons Stock analysis

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