Groupon Valuation
| GRPN Stock | USD 9.20 0.70 8.24% |
At this time, the firm appears to be undervalued. Groupon retains a regular Real Value of $10.98 per share. The prevalent price of the firm is $9.2. Our model calculates the value of Groupon from evaluating the firm fundamentals such as Return On Asset of 0.0197, current valuation of 438.91 M, and Return On Equity of -4.27 as well as inspecting its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Groupon's valuation include:
Price Book 9.148 | Enterprise Value 438.9 M | Enterprise Value Ebitda 4.967 | Price Sales 0.7319 | Forward PE 15.674 |
Undervalued
Today
Please note that Groupon's price fluctuation is slightly risky 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 9.2 | Real 10.98 | Target 13.75 | Hype 9.36 | Naive 8.02 |
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 |
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Groupon Valuation Trend
Knowing Groupon's actual value is paramount for traders when making sound investment determinations. Using both Groupon's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Groupon Total Value Analysis
Groupon is currently projected to have valuation of 438.91 M with market capitalization of 365.86 M, debt of 278.75 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 |
438.91 M | 365.86 M | 278.75 M | 308 M |
Groupon Investor Information
About 14.0% of the company shares are held by company insiders. The company last dividend was issued on the 11th of June 2020. Groupon 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 90.18 percent. This suggests that the Company is making $0.9 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 Ownership Allocation
Groupon has a total of 39.77 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. Please note that no matter how many assets the company holds, if the real value of the firm is less than the current market value, you may not be able to make money on it.Groupon Profitability Analysis
The company reported the previous year's revenue of 514.91 M. Net Loss for the year was (55.41 M) with profit before overhead, payroll, taxes, and interest of 522.82 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 | 450.7 M | 816.1 M | |
| Pretax Profit Margin | (0.08) | (0.09) | |
| Operating Profit Margin | (0.04) | (0.04) | |
| Net Loss | (0.11) | (0.11) | |
| Gross Profit Margin | 0.88 | 0.48 |
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 | 31.2 M | |
| Quarterly Earnings Growth Y O Y | 1.092 | |
| Forward Price Earnings | 15.674 |
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 american community survey. To learn how to invest in Groupon Stock, please use our How to Invest in Groupon guide.You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Broadline Retail space 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 Groupon. If investors know Groupon 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 Groupon listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.092 | Earnings Share 0.69 | Revenue Per Share 13.442 | Quarterly Revenue Growth (0.1) | Return On Assets 0.0197 |
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. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. 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. However, Groupon'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.