Honest Valuation
| HNST Stock | USD 2.10 0.04 1.87% |
Based on Macroaxis valuation methodology, the firm appears to be undervalued. Honest Company retains a regular Real Value of $2.59 per share. The prevalent price of the firm is $2.1. Our model calculates the value of Honest Company from evaluating the firm fundamentals such as Return On Equity of 0.0436, current valuation of 185.33 M, and Return On Asset of 0.013 as well as inspecting its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Honest's valuation include:
Price Book 1.2694 | Enterprise Value | Enterprise Value Ebitda 13.0919 | Price Sales 0.6244 | Forward PE 20.5761 |
Undervalued
Today
Please note that Honest's price fluctuation is relatively risky at this time. Calculation of the real value of Honest Company is based on 3 months time horizon. Increasing Honest's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Honest's intrinsic value may or may not be the same as its current market price of 2.10, 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 2.1 | Real 2.59 | Target 3.87 | Hype 2.09 |
The intrinsic value of Honest'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 Honest'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 Honest Company helps investors to forecast how Honest 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 Honest more accurately as focusing exclusively on Honest'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 Honest's intrinsic value based on its ongoing forecasts of Honest's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Honest's closest peers.
Honest Cash |
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Honest Revenue by Product
Honest Total Value Analysis
Honest Company is currently projected to have valuation of 185.33 M with market capitalization of 239.23 M, debt of 21.74 M, and cash on hands of 66.85 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 Honest fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
185.33 M | 239.23 M | 21.74 M | 66.85 M |
Honest Investor Information
About 13.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 1.27. Some equities with similar Price to Book (P/B) outperform the market in the long run. Honest Company had not issued any dividends in recent years. Based on the key indicators related to Honest's liquidity, profitability, solvency, and operating efficiency, Honest Company is not in a good financial situation at this time. It has a very high probability of going through financial hardship in March.Honest Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Honest has an asset utilization ratio of 152.93 percent. This implies that the Company is making $1.53 for each dollar of assets. An increasing asset utilization means that Honest Company is more efficient with each dollar of assets it utilizes for everyday operations.Honest Profitability Analysis
Based on Honest's profitability indicators, Honest Company may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in March. Profitability indicators assess Honest's ability to earn profits and add value for shareholders.Net Loss | First Reported 2020-03-31 | Previous Quarter 3.9 M | Current Value 758 K | Quarterly Volatility 7.1 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.26 | 0.34 |
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For Honest profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Honest Company to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Honest utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Honest's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Honest over time as well as its relative position and ranking within its peers.
Honest Earnings per Share Projection vs Actual
By analyzing Honest's earnings estimates, investors can diagnose different trends across Honest's analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for Honest Company is based on EPS before non-recurring items and includes expenses related to employee stock options.Honest Ownership Allocation
Honest Company has a total of 111.79 Million outstanding shares. 30% of Honest Company outstanding shares are owned by outside corporations. Institutional investors are typically referred to investors that purchase positions in a given stock to benefit from reduced commissions. Consequently, institutional investors are subject to different rules and regulations than regular investors. Please look out for any change in current institutional holding as this could mean something significant has changed at the company or is about to change. 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.Honest Profitability Analysis
The company reported the previous year's revenue of 378.34 M. Net Loss for the year was (6.12 M) with profit before overhead, payroll, taxes, and interest of 148.68 M.About Honest Valuation
The stock valuation mechanism determines Honest's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Honest Company based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Honest. We calculate exposure to Honest's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Honest's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 166.4 M | 115.6 M | |
| Pretax Profit Margin | (0.01) | (0.02) | |
| Operating Profit Margin | (0.02) | (0.02) | |
| Net Loss | (0.01) | (0.02) | |
| Gross Profit Margin | 0.34 | 0.26 |
Honest Growth Indicators
Investing in growth stocks can be very risky. If the company such as Honest 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 | 100.2 M | |
| Quarterly Earnings Growth Y O Y | 3.297 | |
| Forward Price Earnings | 20.5761 |
Honest Current Valuation Indicators
Honest'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 Honest'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 Honest, 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 Honest'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 Honest's worth.Additional Tools for Honest Stock Analysis
When running Honest's price analysis, check to measure Honest'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 Honest is operating at the current time. Most of Honest's value examination focuses on studying past and present price action to predict the probability of Honest's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Honest's price. Additionally, you may evaluate how the addition of Honest to your portfolios can decrease your overall portfolio volatility.