Farfetch Stock Valuation

FTCH -  USA Stock  

USD 9.43  0.78  9.02%

Do you want to know what the current value of Farfetch Ltd Cl is 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 Farfetch, is its stock price multiplied by the total number of shares outstanding, calculating Farfetch's enterprise value requires a different approach. It uses Farfetch's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current Enterprise Value is estimated to increase to about 12 B, while Free Cash Flow is projected to decrease to (491.3 M).
Farfetch Ltd Cl shows a prevailing Real Value of $19.22 per share. The current price of the firm is $9.43. At this time, the firm appears to be undervalued. Our model computes the value of Farfetch Ltd Cl from reviewing the firm fundamentals such as Shares Outstanding of 338.46 M, current valuation of 2.91 B, and Profit Margin of 73.90 % as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we advise locking in undervalued instruments and disposing overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
  
Refresh
Farfetch 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 Farfetch's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Farfetch Most Recent Valuation Data

Price Book
3.43
Address
The Bower, London, United Kingdom, EC1V 9NR
Price Sales
1.44
EBITDA
-255.8 M
Beta
3.14
Fiscal Year End
December
Industry
Internet Retail
Undervalued
Today 9.43
Please note that Farfetch's price fluctuation is somewhat reliable at this time. Calculation of the real value of Farfetch Ltd Cl is based on 3 months time horizon. Increasing Farfetch's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Farfetch Ltd Cl is useful when determining the fair value of the Farfetch stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Farfetch. Since Farfetch is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Farfetch Stock. However, Farfetch'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.
19.22
Real Value
27.14
Upside
Estimating the potential upside or downside of Farfetch Ltd Cl helps investors to forecast how Farfetch 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 Farfetch more accurately as focusing exclusively on Farfetch's fundamentals will not take into account other important factors:
Earnings
Estimates (3)
LowProjected EPSHigh
-1.56-1.37-1.23
Details
Hype
Prediction
LowEstimated ValueHigh
2.1810.1018.02
Details
Naive
Forecast
LowNext ValueHigh
0.678.6016.52
Details
11 Analysts
Consensus
LowTarget PriceHigh
30.0050.2775.00
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 Farfetch's intrinsic value based on its ongoing forecasts of Farfetch's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Farfetch's closest peers. When choosing an evaluation method for Farfetch Ltd 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.

Farfetch Investments

127.29 Million

Share

Farfetch Valuation Drivers Correlation

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

Farfetch Valuation Trend

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

Farfetch Market Cap

Farfetch Ltd Cl is one of the top stocks in market capitalization category among related companies. Market capitalization of Internet Retail industry is currently estimated at about 793.91 Billion. Farfetch adds roughly 3.02 Billion in market capitalization claiming only tiny portion of equities under Internet Retail industry.
Capitalization  Total debt  Revenue  Workforce  Valuation

Farfetch Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Farfetch's current stock value. Our valuation model uses many indicators to compare Farfetch value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Farfetch competition to find correlations between indicators driving Farfetch's intrinsic value. More Info.
Farfetch Ltd Cl is one of the top stocks in price to sales category among related companies. It is one of the top stocks in beta category among related companies totaling about  2.38  of Beta per Price to Sales. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Farfetch by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Farfetch'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 Farfetch'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 Farfetch'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 Farfetch and how it compares across the competition.

About Farfetch Valuation

The equity valuation mechanism determines the current worth of Farfetch Ltd Cl on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Farfetch Ltd Cl. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Farfetch Ltd Cl based exclusively on its fundamental and basic technical indicators. By analyzing Farfetch'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 Farfetch'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 Farfetch. We calculate exposure to Farfetch's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Farfetch's related companies.
Last ReportedProjected for 2022
Gross ProfitB1.1 B
Profit Margin 0.65  0.70 
Farfetch Limited, together with its subsidiaries, provides an online marketplace for luxury fashion goods in the United States, the United Kingdom, and internationally. Farfetch Limited was founded in 2007 and is headquartered in London, the United Kingdom. Farfetch operates under Internet Retail classification in the United States and is traded on New York Stock Exchange. It employs 6464 people.

Farfetch Quarterly Enterprise Value

5.15 Billion

Share

Farfetch 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 Farfetch 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 Ratio1.70
Earnings Quarterly Growth43.60%
Revenue Growth6.10%
Enterprise Value To Ebitda-8.87
Enterprise Value To Revenue1.27

Farfetch Current Valuation Indicators

Valuation refers to the process of determining the present value of Farfetch Ltd Cl and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Farfetch we look at many different elements of the entity such as Farfetch's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Farfetch'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 Farfetch'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 Farfetch, 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 Farfetch'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 Farfetch's worth.
Please check Investing Opportunities. Note that the Farfetch Ltd Cl information on this page should be used as a complementary analysis to other Farfetch'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 Global Correlations module to find global opportunities by holding instruments from different markets.

Complementary Tools for Farfetch Stock analysis

When running Farfetch Ltd Cl price analysis, check to measure Farfetch'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 Farfetch is operating at the current time. Most of Farfetch's value examination focuses on studying past and present price action to predict the probability of Farfetch's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Farfetch's price. Additionally, you may evaluate how the addition of Farfetch to your portfolios can decrease your overall portfolio volatility.
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
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
Is Farfetch'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 Farfetch. If investors know Farfetch 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 Farfetch listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
3.3 B
Quarterly Revenue Growth YOY
0.061
Return On Assets
-0.0874
Return On Equity
-5.27
The market value of Farfetch Ltd Cl is measured differently than its book value, which is the value of Farfetch that is recorded on the company's balance sheet. Investors also form their own opinion of Farfetch's value that differs from its market value or its book value, called intrinsic value, which is Farfetch'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 Farfetch's market value can be influenced by many factors that don't directly affect Farfetch'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 Farfetch's value and its price as these two are different measures arrived at by different means. Investors typically determine Farfetch value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Farfetch'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.