GreenSky Stock Valuation

GSKY
 Stock
  

USD 10.20  0.00  0.00%   

Do you wonder what the value of GreenSky 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 GreenSky, is its stock price multiplied by the total number of shares outstanding, calculating GreenSky's enterprise value requires a different approach. It uses GreenSky'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 rise to about 663.9 M in 2022, whereas Enterprise Value is likely to drop slightly above 2 B in 2022.
GreenSky retains a regular Real Value of $9.43 per share. The prevalent price of the firm is $10.2. At this time, the firm appears to be overvalued. Our model calculates the value of GreenSky from evaluating the firm fundamentals such as Return On Asset of 5.75 %, return on equity of (0.30) %, and Current Valuation of 1.19 B as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage acquiring undervalued assets and dropping overvalued assets since, at some point, asset prices and their ongoing real values will come together.
  
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GreenSky 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 GreenSky's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Overvalued
Today 10.20
Please note that GreenSky's price fluctuation is very steady at this time. Calculation of the real value of GreenSky is based on 3 months time horizon. Increasing GreenSky's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for GreenSky is useful when determining the fair value of the GreenSky stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of GreenSky. Since GreenSky is currently traded on the exchange, buyers and sellers on that exchange determine the market value of GreenSky Stock. However, GreenSky'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.
9.43
Real Value
11.22
Upside
Estimating the potential upside or downside of GreenSky helps investors to forecast how GreenSky 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 GreenSky more accurately as focusing exclusively on GreenSky's fundamentals will not take into account other important factors:
Earnings
Estimates (1)
LowProjected EPSHigh
0.490.490.49
Details
Hype
Prediction
LowEstimated ValueHigh
10.2010.2010.20
Details
Naive
Forecast
LowNext ValueHigh
10.1410.1410.14
Details
3 Analysts
Consensus
LowTarget PriceHigh
8.0010.0012.00
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 GreenSky's intrinsic value based on its ongoing forecasts of GreenSky's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against GreenSky's closest peers. When choosing an evaluation method for GreenSky, 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.

GreenSky Investments

5.46 Million

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GreenSky Valuation Drivers Correlation

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

GreenSky Valuation Trend

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

GreenSky Market Cap

GreenSky is rated below average in market capitalization category among related companies. Market capitalization of Software—Infrastructure industry is currently estimated at about 589.64 Billion. GreenSky adds roughly 939.79 Million in market capitalization claiming only tiny portion of equities listed under Software—Infrastructure industry.
Capitalization  Workforce  Total debt  Revenue  Valuation

GreenSky Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining GreenSky's current stock value. Our valuation model uses many indicators to compare GreenSky value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across GreenSky competition to find correlations between indicators driving GreenSky's intrinsic value. More Info.
GreenSky is one of the top stocks in price to sales category among related companies. It is rated # 2 in beta category among related companies totaling about  0.80  of Beta per Price to Sales. The ratio of Price to Sales to Beta for GreenSky is roughly  1.26 . Comparative valuation analysis is a catch-all model that can be used if you cannot value GreenSky by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for GreenSky'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 GreenSky'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 GreenSky'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 GreenSky and how it compares across the competition.

About GreenSky Valuation

The equity valuation mechanism determines the current worth of GreenSky on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of GreenSky. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of GreenSky based exclusively on its fundamental and basic technical indicators. By analyzing GreenSky'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 GreenSky'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 GreenSky. We calculate exposure to GreenSky's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to GreenSky's related companies.
Last ReportedProjected for 2022
Gross Profit319.2 M303.2 M
Profit Margin 0.08  0.08 
GreenSky, Inc., a technology company, that enables promotional financing at the point of sale for merchants, consumers, and bank partners. The company was founded in 2006 and is headquartered in Atlanta, Georgia. Greensky Inc operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 1164 people.

GreenSky Quarterly Enterprise Value

2.32 Billion

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GreenSky 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 GreenSky 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 Ratio1.35
Earnings Quarterly Growth1,397.30%
Revenue Growth-9.80%
Enterprise Value To Ebitda8.70
Earnings Growth1,416.50%
Enterprise Value To Revenue2.29

GreenSky Current Valuation Indicators

Valuation refers to the process of determining the present value of GreenSky and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value GreenSky we look at many different elements of the entity such as GreenSky's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. GreenSky'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 GreenSky'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 GreenSky, 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 GreenSky'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 GreenSky's worth.
Please check Risk vs Return Analysis. Note that the GreenSky information on this page should be used as a complementary analysis to other GreenSky'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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

Other Tools for GreenSky Stock

When running GreenSky price analysis, check to measure GreenSky'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 GreenSky is operating at the current time. Most of GreenSky's value examination focuses on studying past and present price action to predict the probability of GreenSky's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move GreenSky's price. Additionally, you may evaluate how the addition of GreenSky to your portfolios can decrease your overall portfolio volatility.
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