Direct Digital Valuation
| DRCT Stock | USD 1.29 0.03 2.27% |
Today, the firm appears to be undervalued. Direct Digital Holdings shows a prevailing Real Value of $2.5 per share. The current price of the firm is $1.29. Our model computes the value of Direct Digital Holdings from reviewing the firm fundamentals such as Shares Outstanding of 5.44 M, profit margin of (0.02) %, and Current Valuation of 54.78 M as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Direct Digital's valuation include:
Price Book 13.8661 | Enterprise Value | Enterprise Value Ebitda 6.2474 | Price Sales 0.1455 | Forward PE 5.1125 |
Undervalued
Today
Please note that Direct Digital's price fluctuation is out of control at this time. Calculation of the real value of Direct Digital Holdings is based on 3 months time horizon. Increasing Direct Digital's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Direct Digital's intrinsic value may or may not be the same as its current market price of 1.29, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 1.29 | Real 2.5 | Target 5.25 | Hype 1.4 |
The intrinsic value of Direct Digital's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Direct Digital's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Direct Digital Holdings helps investors to forecast how Direct 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 Direct Digital more accurately as focusing exclusively on Direct Digital's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Direct Digital's intrinsic value based on its ongoing forecasts of Direct Digital's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Direct Digital's closest peers.
Direct Digital Cash |
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Direct Valuation Trend
Direct Digital's real value is important for investors to make better decisions and a more accurate overall view of Direct Digital's financial worth over time. Using both Direct Digital's enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
Direct Digital Total Value Analysis
Direct Digital Holdings is currently forecasted to have valuation of 54.78 M with market capitalization of 21.04 M, debt of 30.95 M, and cash on hands of 4.92 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Direct Digital fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
54.78 M | 21.04 M | 30.95 M | 4.92 M |
Direct Digital Investor Information
About 17.0% of the company shares are held by company insiders. The company recorded a loss per share of 1.93. Direct Digital Holdings had not issued any dividends in recent years. Direct Digital Holdings is not in a good financial situation at this time. It has a very high probability of going through financial hardship in February.Direct Digital Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Direct Digital has an asset utilization ratio of 222.31 percent. This implies that the Company is making $2.22 for each dollar of assets. An increasing asset utilization means that Direct Digital Holdings is more efficient with each dollar of assets it utilizes for everyday operations.Direct Digital Ownership Allocation
The market capitalization of Direct Digital Holdings is $21.04 Million. Direct Digital Holdings shows 16.91 percent of its outstanding shares held by insiders and 7.5 percent owned by other corporate entities. Note, that even with negative profits, if the true value of the firm is larger than the current market value, you may still be able to generate positive returns on investment in this company.Direct Digital Profitability Analysis
The company reported the previous year's revenue of 157.11 M. Net Loss for the year was (6.84 M) with profit before overhead, payroll, taxes, and interest of 32 M.About Direct Digital Valuation
The stock valuation mechanism determines Direct Digital's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Direct Digital Holdings based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Direct Digital. We calculate exposure to Direct Digital's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Direct Digital's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 43.2 M | 23.6 M | |
| Pretax Profit Margin | (0.04) | (0.04) | |
| Operating Profit Margin | (0.01) | (0.01) | |
| Net Loss | (0.01) | (0.01) | |
| Gross Profit Margin | 0.28 | 0.39 |
Direct Digital Growth Indicators
Investing in growth stocks can be very risky. If the company such as Direct Digital 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.
| Common Stock Shares Outstanding | 3 M | |
| Quarterly Earnings Growth Y O Y | 3.022 | |
| Forward Price Earnings | 5.1125 |
Direct Digital Current Valuation Indicators
Direct Digital's valuation analysis is 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 Direct Digital'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 Direct Digital, 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 Direct Digital'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 Direct Digital's worth.Additional Tools for Direct Stock Analysis
When running Direct Digital's price analysis, check to measure Direct Digital'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 Direct Digital is operating at the current time. Most of Direct Digital's value examination focuses on studying past and present price action to predict the probability of Direct Digital's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Direct Digital's price. Additionally, you may evaluate how the addition of Direct Digital to your portfolios can decrease your overall portfolio volatility.