Rent A Center Valuation
| RCIIDelisted Stock | USD 26.78 0.51 1.94% |
At this time, the company appears to be overvalued. Rent A Center holds a recent Real Value of $22.42 per share. The prevailing price of the company is $26.78. Our model determines the value of Rent A Center from analyzing the company fundamentals such as Operating Margin of 0.04 %, return on equity of 0.0238, and Shares Outstanding of 55.67 M as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Rent A's price fluctuation is very steady at this time. Calculation of the real value of Rent A Center is based on 3 months time horizon. Increasing Rent A's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Rent A is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Rent Stock. However, Rent A'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 26.78 | Real 22.42 | Hype 26.78 | Naive 25.83 |
The intrinsic value of Rent A's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Rent A's stock price.
Estimating the potential upside or downside of Rent A Center helps investors to forecast how Rent 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 Rent A more accurately as focusing exclusively on Rent A's fundamentals will not take into account other important factors: Rent A Total Value Analysis
Rent A Center is at this time forecasted to have valuation of 2.86 B with market capitalization of 1.49 B, debt of 1.57 B, and cash on hands of 165.63 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 Rent A fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
2.86 B | 1.49 B | 1.57 B | 165.63 M |
Rent A Investor Information
About 90.0% of the company shares are owned by institutional investors. The book value of Rent A was at this time reported as 10.05. The company last dividend was issued on the 19th of December 2022. Rent A Center had 5:2 split on the 2nd of September 2003. Based on the key measurements obtained from Rent A's financial statements, Rent A Center is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.Rent A Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Rent A has an asset utilization ratio of 153.62 percent. This signifies that the Company is making $1.54 for each dollar of assets. An increasing asset utilization means that Rent A Center is more efficient with each dollar of assets it utilizes for everyday operations.Rent A Ownership Allocation
Rent A owns a total of 55.67 Million outstanding shares. The majority of Rent A Center outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Rent A Center to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Rent A. Please pay attention to any change in the institutional holdings of Rent A Center as this could imply that something significant has changed or is about to change at the company. Also note that almost four hundred eighty-nine thousand eight hundred ninety-six invesors are currently shorting Rent A expressing very little confidence in its future performance.Rent A Profitability Analysis
The company reported the previous year's revenue of 4.25 B. Net Income was 134.94 M with profit before overhead, payroll, taxes, and interest of 2.08 B.Rent A Past Distributions to stockholders
About Rent A Valuation
An absolute valuation paradigm, as applied to Rent Stock, attempts to find the value of Rent A Center based on its fundamental and basic technical indicators. By analyzing Rent A's financials, quarterly and monthly indicators, and their related drivers, such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Rent A'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 Rent A. We calculate exposure to Rent A's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Rent A's related companies.Rent-A-Center, Inc., together with its subsidiaries, leases household durable goods to customers on a lease-to-own basis. Rent-A-Center, Inc. was founded in 1960 and is headquartered in Plano, Texas. Rent A operates under Rental Leasing Services classification in the United States and is traded on NASDAQ Exchange. It employs 14290 people.
A single share of Rent A represents a small ownership stake in the entity. As a stockholder of Rent, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Rent A Dividends Analysis For Valuation
Please note that Rent A has scaled down on payment of dividends at this time.
There are various types of dividends Rent A can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Rent shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Rent A Center directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Rent pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Rent A by the value of the dividends paid out.
Rent A 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 | 59 M | |
| Quarterly Earnings Growth Y O Y | -0.682 | |
| Forward Price Earnings | 5.6818 | |
| Retained Earnings | 1.2 B |
Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product. You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Consideration for investing in Rent Stock
If you are still planning to invest in Rent A Center check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Rent A's history and understand the potential risks before investing.
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