Groupon Valuation
| GRPN Stock | USD 14.76 0.73 4.71% |
At this time, the firm appears to be undervalued. Groupon retains a regular Real Value of $19.87 per share. The prevalent price of the firm is $14.76. Our model calculates the value of Groupon from evaluating the firm fundamentals such as Current Valuation of 744.04 M, return on equity of -0.15, and Return On Asset of 0.0104 as well as inspecting its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Groupon's valuation include:
Price Book 17.7667 | Enterprise Value | Enterprise Value Ebitda 17.4157 | Price Sales 1.2725 | Forward PE 15.0376 |
Undervalued
Today
Please note that Groupon's price fluctuation is not too volatile at this time. Calculation of the real value of Groupon is based on 3 months time horizon. Increasing Groupon's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Groupon is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Groupon Stock. However, Groupon'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. | Historical | Market 14.76 | Real 19.87 | Target 35.33 | Hype 14.61 | Naive 15.33 |
The intrinsic value of Groupon'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 Groupon'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 Groupon helps investors to forecast how Groupon 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 Groupon more accurately as focusing exclusively on Groupon'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 Groupon's intrinsic value based on its ongoing forecasts of Groupon's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Groupon's closest peers.
Groupon Cash |
|
Groupon Total Value Analysis
Groupon is currently projected to have valuation of 744.04 M with market capitalization of 631.29 M, debt of 252.93 M, and cash on hands of 308 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 Groupon fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
744.04 M | 631.29 M | 252.93 M | 308 M |
Groupon Investor Information
About 14.0% of the company shares are held by company insiders. The company recorded a loss per share of 3.54. Groupon last dividend was issued on the 11th of June 2020. The entity had 1:20 split on the 11th of June 2020. Based on the analysis of Groupon's profitability, liquidity, and operating efficiency, Groupon may be sliding down financialy. It has an above-average risk of going through some form of financial straits next quarter.Groupon Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Groupon has an asset utilization ratio of 80.39 percent. This suggests that the Company is making $0.8 for each dollar of assets. An increasing asset utilization means that Groupon is more efficient with each dollar of assets it utilizes for everyday operations.Groupon Profitability Analysis
Considering Groupon's profitability and operating efficiency indicators, Groupon may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in March. Profitability indicators assess Groupon's ability to earn profits and add value for shareholders.Net Loss | First Reported 2010-03-31 | Previous Quarter 20.3 M | Current Value -118.4 M | Quarterly Volatility 62.5 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.5 | 0.81 |
|
|
For Groupon profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Groupon to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Groupon utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Groupon's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Groupon over time as well as its relative position and ranking within its peers.
Groupon Earnings per Share Projection vs Actual
The next projected EPS of Groupon is estimated to be 0.3 with future projections ranging from a low of 0.3 to a high of 0.3. Groupon's most recent 12-month trailing earnings per share (EPS TTM) is at -3.54. Please be aware that the consensus of earnings estimates for Groupon is based on EPS before non-recurring items and includes expenses related to employee stock options.Groupon Earnings Estimation Breakdown
The calculation of Groupon's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Groupon is estimated to be 0.3 with the future projection ranging from a low of 0.3 to a high of 0.3. Please be aware that this consensus of annual earnings estimates for Groupon is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
0.30 Lowest | Expected EPS | 0.30 Highest |
Groupon Earnings Projection Consensus
Suppose the current estimates of Groupon's value are higher than the current market price of the Groupon stock. In this case, investors may conclude that Groupon is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Groupon's stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of March 2026 | Current EPS (TTM) | |
| 3 | -1.37% | 0.0 | 0.3 | -3.54 |
Groupon Ownership Allocation
Groupon has a total of 40.75 Million outstanding shares. The majority of Groupon outstanding shares are owned by outside corporations. These institutional investors are usually referred to as non-private investors looking to purchase positions in Groupon to benefit from reduced commissions. Consequently, third-party entities are subject to a different set of regulations than regular investors in Groupon. Please pay attention to any change in the institutional holdings of Groupon as this could imply that something significant has changed or is about to change at the company. Also note that almost four million four hundred eighty-seven thousand one hundred four invesors are currently shorting Groupon expressing very little confidence in its future performance.Groupon Profitability Analysis
The company reported the previous year's revenue of 492.56 M. Net Loss for the year was (56.51 M) with profit before overhead, payroll, taxes, and interest of 450.75 M.About Groupon Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Groupon. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Groupon based exclusively on its fundamental and basic technical indicators. By analyzing Groupon's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Groupon's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Groupon. We calculate exposure to Groupon's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Groupon's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 399.9 M | 787.3 M | |
| Pretax Profit Margin | (0.06) | (0.06) | |
| Operating Profit Margin | 0.02 | 0.02 | |
| Net Loss | (0.12) | (0.11) | |
| Gross Profit Margin | 0.81 | 0.50 |
Groupon Growth Indicators
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.
| Common Stock Shares Outstanding | 39.2 M | |
| Quarterly Earnings Growth Y O Y | 1.092 | |
| Forward Price Earnings | 15.0376 |
Groupon Current Valuation Indicators
Groupon'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 Groupon'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 Groupon, 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 Groupon'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 Groupon's worth.When determining whether Groupon offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Groupon's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Groupon Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Groupon Stock: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Groupon. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. To learn how to invest in Groupon Stock, please use our How to Invest in Groupon guide.You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Will Broadline Retail sector continue expanding? Could Groupon diversify its offerings? Factors like these will boost the valuation of Groupon. Market participants price Groupon higher when confident in its future expansion prospects. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Groupon data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth 1.092 | Earnings Share (3.54) | Revenue Per Share | Quarterly Revenue Growth 0.073 | Return On Assets |
The market value of Groupon is measured differently than its book value, which is the value of Groupon that is recorded on the company's balance sheet. Investors also form their own opinion of Groupon's value that differs from its market value or its book value, called intrinsic value, which is Groupon's true underlying value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Because Groupon's market value can be influenced by many factors that don't directly affect Groupon'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 Groupon's value and its price as these two are different measures arrived at by different means. Investors typically determine if Groupon is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. Meanwhile, Groupon's quoted price indicates the marketplace figure where supply meets demand through bilateral consent.