Vroom Stock Valuation

VRM
 Stock
  

USD 1.24  0.02  1.59%   

What is the enterprise value of Vroom? 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 Vroom, is its stock price multiplied by the total number of shares outstanding, calculating Vroom's enterprise value requires a different approach. It uses Vroom's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Vroom Inc has a current Real Value of $1.09 per share. The regular price of the company is $1.24. Today, the company appears to be overvalued. Our model measures the value of Vroom Inc from inspecting the company fundamentals such as Return On Equity of (80.09) %, shares outstanding of 136.91 M, and Operating Margin of (13.14) % as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend acquiring undervalued stocks and dropping overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
  
Vroom 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 Vroom's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Vroom Most Recent Valuation Data

Price Book
0.39
EPS Estimate Next Quarter
(0.69) 
Address
1375 Broadway, New York, NY, United States, 10018
Price Sales
0.0641
EBITDA
-371 M
Beta
1.53
Overvalued
Today 1.24
Please note that Vroom's price fluctuation is extremely dangerous at this time. Calculation of the real value of Vroom Inc is based on 3 months time horizon. Increasing Vroom's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Vroom Inc is useful when determining the fair value of the Vroom stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Vroom. Since Vroom is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Vroom Stock. However, Vroom'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.
1.09
Real Value
6.95
Upside
Estimating the potential upside or downside of Vroom Inc helps investors to forecast how Vroom 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 Vroom more accurately as focusing exclusively on Vroom's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
1.091.201.30
Details
Hype
Prediction
LowEstimated ValueHigh
0.061.207.06
Details
Naive
Forecast
LowNext ValueHigh
0.0278141.397.25
Details

Vroom Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Vroom's current stock value. Our valuation model uses many indicators to compare Vroom value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Vroom competition to find correlations between indicators driving Vroom's intrinsic value. More Info.
Vroom Inc is rated first in beta category among related companies. It is rated below average in price to book category among related companies fabricating about  0.09  of Price to Book per Beta. The ratio of Beta to Price to Book for Vroom Inc is roughly  10.87 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Vroom by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Vroom'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 Vroom'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 Vroom'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 Vroom and how it compares across the competition.

About Vroom Valuation

The stock valuation mechanism determines the current worth of Vroom Inc on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Vroom Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Vroom Inc based exclusively on its fundamental and basic technical indicators. By analyzing Vroom'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 Vroom'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 Vroom. We calculate exposure to Vroom's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Vroom's related companies.
Fiscal Year End
December
Industry
Auto & Truck Dealerships
Concentration
Automotive Retail
Full Time Employees
1.8 K
Service Category
Specialty Retail
Vroom, Inc. operates as an e-commerce used automotive retailer in the United States. The company was incorporated in 2012 and is headquartered in New York, New York. Vroom operates under Auto Truck Dealerships classification in the United States and is traded on NASDAQ Exchange. It employs 1807 people.

Vroom 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 Vroom 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 Ratio0.97
Revenue Growth-37.60%
Enterprise Value To Ebitda-2.60
Enterprise Value To Revenue0.32
Also, please take a look at World Market Map. You can also try Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

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When running Vroom Inc price analysis, check to measure Vroom'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 Vroom is operating at the current time. Most of Vroom's value examination focuses on studying past and present price action to predict the probability of Vroom's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Vroom's price. Additionally, you may evaluate how the addition of Vroom to your portfolios can decrease your overall portfolio volatility.
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Is Vroom'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 Vroom. If investors know Vroom 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 Vroom listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
171.3 M
Quarterly Revenue Growth YOY
(0.62) 
Return On Assets
(0.12) 
Return On Equity
(0.82) 
The market value of Vroom Inc is measured differently than its book value, which is the value of Vroom that is recorded on the company's balance sheet. Investors also form their own opinion of Vroom's value that differs from its market value or its book value, called intrinsic value, which is Vroom'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 Vroom's market value can be influenced by many factors that don't directly affect Vroom'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 Vroom's value and its price as these two are different measures arrived at by different means. Investors typically determine Vroom value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vroom'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.