Rent The Valuation
| RENT Stock | USD 11.73 1.74 17.42% |
At this time, the company appears to be overvalued. Rent the Runway holds a recent Real Value of $7.68 per share. The prevailing price of the company is $11.73. Our model determines the value of Rent the Runway from analyzing the company fundamentals such as Return On Equity of -7.75, shares outstanding of 3.65 M, and Operating Margin of (0.11) % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Rent The's valuation include:
Price Book 12.3028 | Enterprise Value 328.3 M | Enterprise Value Ebitda 6.1603 | Price Sales 0.1259 | Enterprise Value Revenue 1.0865 |
Overvalued
Today
Please note that Rent The's price fluctuation is relatively risky at this time. Calculation of the real value of Rent the Runway is based on 3 months time horizon. Increasing Rent The's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Rent The's intrinsic value may or may not be the same as its current market price of 11.73, 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 11.73 | Real 7.68 | Target 5.5 | Hype 11.74 | Naive 11.75 |
The intrinsic value of Rent The'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 Rent The'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 Rent the Runway 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 The more accurately as focusing exclusively on Rent The'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 Rent The's intrinsic value based on its ongoing forecasts of Rent The's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Rent The's closest peers.
Rent The Cash |
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Rent Valuation Trend
Rent The's real value is important for investors to make better decisions and a more accurate overall view of Rent The's financial worth over time. Using both Rent The'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.
Rent Revenue by Product
Rent The Total Value Analysis
Rent the Runway is at this time estimated to have valuation of 328.34 M with market capitalization of 38.04 M, debt of 356.6 M, and cash on hands of 192.3 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 The fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
328.34 M | 38.04 M | 356.6 M | 192.3 M |
Rent The Investor Information
About 16.0% of the company outstanding shares are owned by corporate insiders. The company has Price/Earnings (P/E) ratio of 329.66. Rent the Runway recorded a loss per share of 26.25. The entity had not issued any dividends in recent years. The firm had 1:20 split on the 3rd of April 2024. Based on the measurements of operating efficiency obtained from Rent The's historical financial statements, Rent the Runway is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.Rent The Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Rent The has an asset utilization ratio of 107.07 percent. This implies that the Company is making $1.07 for each dollar of assets. An increasing asset utilization means that Rent the Runway is more efficient with each dollar of assets it utilizes for everyday operations.Rent The Ownership Allocation
The market capitalization of Rent the Runway is $38.04 Million. 30% of Rent the Runway outstanding shares are owned by third-party entities. 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. Note, that even with negative profits, if the true value of the company is larger than the current market value, you may still be able to generate positive returns on investment in this company.Rent The Profitability Analysis
The company reported the previous year's revenue of 298.2 M. Net Loss for the year was (113.2 M) with profit before overhead, payroll, taxes, and interest of 141.4 M.About Rent The Valuation
The stock valuation mechanism determines Rent The's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Rent the Runway based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Rent The. We calculate exposure to Rent The's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Rent The's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 119.7 M | 125.7 M | |
| Pretax Profit Margin | (0.38) | (0.06) | |
| Operating Profit Margin | (0.27) | (0.06) | |
| Net Loss | (0.38) | (0.02) | |
| Gross Profit Margin | 0.40 | 0.65 |
Rent The Growth Indicators
Investing in growth stocks can be very risky. If the company such as Rent The 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 | 3.4 M |
Rent The Current Valuation Indicators
Rent The'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 Rent The'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 Rent The, 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 Rent The'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 Rent The's worth.Additional Tools for Rent Stock Analysis
When running Rent The's price analysis, check to measure Rent The'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 Rent The is operating at the current time. Most of Rent The's value examination focuses on studying past and present price action to predict the probability of Rent The's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Rent The's price. Additionally, you may evaluate how the addition of Rent The to your portfolios can decrease your overall portfolio volatility.