Five Below Stock Valuation

FIVE
 Stock
  

USD 130.63  7.16  5.20%   

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.
Five Below shows a prevailing Real Value of $170.17 per share. The current price of the firm is $130.63. At this time, the firm appears to be undervalued. Our model computes the value of Five Below from reviewing the firm fundamentals such as Shares Outstanding of 55.51 M, profit margin of 8.19 %, and Current Valuation of 8.54 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.
Undervalued
Today 130.63
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.
124.01
Downside
170.17
Real Value
173.48
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:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
125.25134.53143.82
Details
Hype
Prediction
LowEstimated ValueHigh
136.13139.44142.75
Details
Naive
Forecast
LowNext ValueHigh
127.25130.56133.87
Details
16 Analysts
Consensus
LowTarget PriceHigh
205.00237.00300.00
Details

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 price to book category among related companies. It is one of the top stocks in price to sales category among related companies fabricating about  0.40  of Price to Sales per Price to Book. The ratio of Price to Book to Price to Sales for Five Below is roughly  2.51 . 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.
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 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 Ratio0.43
Earnings Quarterly Growth-36.20%
Revenue Growth3.50%
Enterprise Value To Ebitda20.20
Earnings Growth-35.70%
Enterprise Value To Revenue2.93
Please check Investing Opportunities. You can also try Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

Complementary Tools for 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.
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.