Rivian Automotive Valuation
| RIVN Stock | USD 10.24 0.22 2.20% |
At this time, the company appears to be undervalued. Rivian Automotive holds a recent Real Value of $14.49 per share. The prevailing price of the company is $10.24. Our model determines the value of Rivian Automotive from analyzing the company fundamentals such as Operating Margin of (1.34) %, shares outstanding of 1.01 B, and Return On Equity of -0.67 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Rivian Automotive's valuation include:
Price Book 1.7718 | Enterprise Value 10 B | Enterprise Value Ebitda (1.96) | Price Sales 2.2966 | Enterprise Value Revenue 2.1909 |
Undervalued
Today
Please note that Rivian Automotive's price fluctuation is somewhat reliable at this time. Calculation of the real value of Rivian Automotive is based on 3 months time horizon. Increasing Rivian Automotive's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Rivian Automotive is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Rivian Stock. However, Rivian Automotive'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 10.24 | Real 14.49 | Target 28.17 | Hype 10.25 | Naive 10.01 |
The intrinsic value of Rivian Automotive'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 Rivian Automotive'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 Rivian Automotive helps investors to forecast how Rivian 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 Rivian Automotive more accurately as focusing exclusively on Rivian Automotive'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 Rivian Automotive's intrinsic value based on its ongoing forecasts of Rivian Automotive's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Rivian Automotive's closest peers.
Rivian Automotive Cash |
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Rivian Valuation Trend
Knowing Rivian Automotive's actual value is paramount for traders when making sound investment determinations. Using both Rivian Automotive'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.
Rivian Automotive Total Value Analysis
Rivian Automotive is at this time anticipated to have valuation of 9.97 B with market capitalization of 10.45 B, debt of 4.92 B, and cash on hands of 13.27 B. 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 Rivian Automotive fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
9.97 B | 10.45 B | 4.92 B | 13.27 B |
Rivian Automotive Investor Information
About 27.0% of the company outstanding shares are owned by corporate insiders. The company has price-to-book ratio of 1.77. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Rivian Automotive has Price/Earnings To Growth (PEG) ratio of 0.13. The entity recorded a loss per share of 5.6. The firm had not issued any dividends in recent years. Based on the measurements of operating efficiency obtained from Rivian Automotive's historical financial statements, Rivian Automotive is not in a good financial situation at this time. It has a very high probability of going through financial hardship in December.Rivian Automotive Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Rivian Automotive has an asset utilization ratio of 26.43 percent. This suggests that the Company is making $0.26 for each dollar of assets. An increasing asset utilization means that Rivian Automotive is more efficient with each dollar of assets it utilizes for everyday operations.Rivian Automotive Ownership Allocation
Rivian Automotive owns a total of 1.01 Billion outstanding shares. Rivian Automotive has significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. On February 8, 2022, Representative James R Langevin of US Congress acquired under $15k worth of Rivian Automotive's common stock.Rivian Automotive Profitability Analysis
The company reported the previous year's revenue of 4.43 B. Net Loss for the year was (5.43 B) with loss before overhead, payroll, taxes, and interest of (3.12 B).About Rivian Automotive Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Rivian Automotive. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Rivian Automotive based exclusively on its fundamental and basic technical indicators. By analyzing Rivian Automotive's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Rivian Automotive's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Rivian Automotive. We calculate exposure to Rivian Automotive's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Rivian Automotive's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | -2 B | -1.9 B | |
| Pretax Profit Margin | (1.22) | (1.29) | |
| Operating Profit Margin | (1.29) | (1.36) | |
| Net Loss | (1.23) | (1.29) | |
| Gross Profit Margin | (0.46) | (0.48) |
Rivian Automotive 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 | 947 M |
Rivian Automotive Current Valuation Indicators
Rivian Automotive'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 Rivian Automotive'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 Rivian Automotive, 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 Rivian Automotive'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 Rivian Automotive's worth.When determining whether Rivian Automotive offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Rivian Automotive'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 Rivian Automotive Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Rivian Automotive Stock: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Rivian Automotive. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in real. To learn how to invest in Rivian Stock, please use our How to Invest in Rivian Automotive guide.You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Is Automobile Manufacturers 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 Rivian Automotive. If investors know Rivian 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 Rivian Automotive listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (5.60) | Revenue Per Share 4.602 | Quarterly Revenue Growth (0.35) | Return On Assets (0.23) | Return On Equity (0.67) |
The market value of Rivian Automotive is measured differently than its book value, which is the value of Rivian that is recorded on the company's balance sheet. Investors also form their own opinion of Rivian Automotive's value that differs from its market value or its book value, called intrinsic value, which is Rivian Automotive'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 Rivian Automotive's market value can be influenced by many factors that don't directly affect Rivian Automotive'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 Rivian Automotive's value and its price as these two are different measures arrived at by different means. Investors typically determine if Rivian Automotive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rivian Automotive'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.