Chewy Stock Valuation

CHWY -  USA Stock  

USD 44.86  1.23  2.67%

Do you wonder what the value of Chewy Inc 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 Chewy, is its stock price multiplied by the total number of shares outstanding, calculating Chewy's enterprise value requires a different approach. It uses Chewy'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 (16.2 M) in 2022. Enterprise Value is likely to drop to about 40.5 B in 2022.
Chewy Inc shows a prevailing Real Value of $54.77 per share. The current price of the firm is $44.86. At this time, the firm appears to be undervalued. Our model approximates the value of Chewy Inc from analyzing the firm fundamentals such as profit margin of 0.13 %, and Return On Equity of 225.86 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor acquiring undervalued instruments and dropping overvalued instruments since, at some point, asset prices and their ongoing real values will blend.

Chewy Valuation 

 
Refresh
Chewy 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 Chewy'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
44.86
16th of January 2022
Share
Please note that Chewy's price fluctuation is very steady at this time. Calculation of the real value of Chewy Inc is based on 12 months time horizon. Increasing Chewy's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Chewy Inc is useful when determining the fair value of the Chewy stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Chewy. Since Chewy is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Chewy Stock. However, Chewy'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.
54.77
Real Value
58.69
Upside
Estimating the potential upside or downside of Chewy Inc helps investors to forecast how Chewy 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 Chewy more accurately as focusing exclusively on Chewy's fundamentals will not take into account other important factors:
Earnings
Estimates (6)
LowProjected EPSHigh
0.050.070.12
Details
Hype
Prediction
LowEstimated ValueHigh
41.0644.9848.90
Details
Naive
Forecast
LowNext ValueHigh
33.7337.6541.57
Details
17 Analysts
Consensus
LowTarget PriceHigh
55.0086.31133.00
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 Chewy's intrinsic value based on its ongoing forecasts of Chewy's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Chewy's closest peers. When choosing an evaluation method for Chewy Inc, 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.

Chewy Valuation Drivers Correlation

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

Chewy Valuation Trend

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

Chewy Market Cap

Chewy Inc is rated third in market capitalization category among related companies. Market capitalization of Internet Retail industry is currently estimated at about 128.06 Billion. Chewy retains roughly 20.86 Billion in market capitalization claiming about 16% of equities under Internet Retail industry.
Capitalization  Valuation  Revenue  Total debt  Workforce

Chewy Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Chewy's current stock value. Our valuation model uses many indicators to compare Chewy value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Chewy competition to find correlations between indicators driving Chewy's intrinsic value. More Info.
Chewy Inc is rated fifth in beta category among related companies. It is rated fourth in price to sales category among related companies fabricating about  5.95  of Price to Sales per Beta. Price to Sales Ratio is likely to drop to 5.82 in 2022. Comparative valuation analysis is a catch-all model that can be used if you cannot value Chewy by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Chewy'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 Chewy's earnings, one of the primary drivers of an investment's value.

About Chewy Valuation

The equity valuation mechanism determines the current worth of Chewy Inc on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Chewy Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Chewy Inc based exclusively on its fundamental and basic technical indicators. By analyzing Chewy'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 Chewy'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 Chewy. We calculate exposure to Chewy's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Chewy's related companies.
Last ReportedProjected for 2022
Gross Profit149.8 M153.8 M
Profit Margin(0.12) (0.13) 
Chewy, Inc., together with its subsidiaries, engages in the pure play e-commerce business in the United States. The company was founded in 2010 and is headquartered in Dania Beach, Florida. Chewy operates under Internet Retail classification in the United States and is traded on New York Stock Exchange. It employs 18500 people.

Chewy Quarterly Enterprise Value

31.31 BillionShare

Chewy 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 Chewy 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 Ratio0.50
Revenue Growth24.10%
Enterprise Value To Ebitda460.07
Enterprise Value To Revenue2.62

Chewy Current Valuation Indicators

Valuation refers to the process of determining the present value of Chewy Inc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Chewy we look at many different elements of the entity such as Chewy's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Chewy, 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 Chewy'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 Chewy's worth.
Continue to Trending Equities. Note that the Chewy Inc information on this page should be used as a complementary analysis to other Chewy'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.

Complementary Tools for Chewy Stock analysis

When running Chewy Inc price analysis, check to measure Chewy'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 Chewy is operating at the current time. Most of Chewy's value examination focuses on studying past and present price action to predict the probability of Chewy's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Chewy's price. Additionally, you may evaluate how the addition of Chewy to your portfolios can decrease your overall portfolio volatility.
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Is Chewy'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 Chewy. If investors know Chewy 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 Chewy 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 Chewy Inc is measured differently than its book value, which is the value of Chewy that is recorded on the company's balance sheet. Investors also form their own opinion of Chewy's value that differs from its market value or its book value, called intrinsic value, which is Chewy'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 Chewy's market value can be influenced by many factors that don't directly affect Chewy'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 Chewy's value and its price as these two are different measures arrived at by different means. Investors typically determine Chewy value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chewy'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.