Root Valuation
| ROOT Stock | USD 65.79 4.06 5.81% |
At this time, the company appears to be fairly valued. Root Inc holds a recent Real Value of $64.85 per share. The prevailing price of the company is $65.79. Our model determines the value of Root Inc from analyzing the company fundamentals such as Shares Outstanding of 13.7 M, operating margin of 0.0008 %, and Return On Equity of 0.17 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Root's valuation include:
Fairly Valued
Today
Please note that Root's price fluctuation is very steady at this time. Calculation of the real value of Root Inc is based on 3 months time horizon. Increasing Root's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Root's intrinsic value may or may not be the same as its current market price of 65.79, 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 65.79 | Real 64.85 | Target 111.6 | Hype 65.79 | Naive 65.76 |
The intrinsic value of Root'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 Root'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 Root Inc helps investors to forecast how Root 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 Root more accurately as focusing exclusively on Root'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 Root's intrinsic value based on its ongoing forecasts of Root's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Root's closest peers.
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Root Total Value Analysis
Root Inc is at this time estimated to have valuation of 566.5 M with market capitalization of 976.29 M, debt of 200.1 M, and cash on hands of 886.1 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 Root fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
566.5 M | 976.29 M | 200.1 M | 886.1 M |
Root Investor Information
About 65.0% of the company shares are owned by institutional investors. The book value of Root was at this time reported as 17.1. The company had not issued any dividends in recent years. Root Inc had 1:18 split on the 15th of August 2022. Based on the key indicators related to Root's liquidity, profitability, solvency, and operating efficiency, Root Inc is performing exceptionally good at the present time. It has a great chance to report excellent financial results in March.Root Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Root has an asset utilization ratio of 78.66 percent. This implies that the Company is making $0.79 for each dollar of assets. An increasing asset utilization means that Root Inc is more efficient with each dollar of assets it utilizes for everyday operations.Root Profitability Analysis
Based on Root's profitability indicators, Root Inc is performing exceptionally good at the present time. It has a great chance to showcase excellent profitability results in March. Profitability indicators assess Root's ability to earn profits and add value for shareholders.Net Income | First Reported 2017-12-31 | Previous Quarter 22 M | Current Value -5.4 M | Quarterly Volatility 51 M |
For Root profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Root Inc to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Root utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Root's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Root over time as well as its relative position and ranking within its peers.
Root Earnings per Share Projection vs Actual
By analyzing Root's earnings estimates, investors can diagnose different trends across Root'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 Root Inc is based on EPS before non-recurring items and includes expenses related to employee stock options.Root Ownership Allocation
The market capitalization of Root Inc is $976.29 Million. Over half of Root's outstanding shares are owned by third-party entities. These third-party entities are typically referred to as corporate investors that secure positions in a given instrument to benefit from reduced trade commissions. Please take into account that even companies with profitable outlook can generate negative future returns on their equity. If the true value of the company is less than the current market value, you may not be able generate positive returns on investment in the long run.Root Profitability Analysis
The company reported the previous year's revenue of 1.18 B. Net Income was 30.9 M with profit before overhead, payroll, taxes, and interest of 576.7 M.About Root Valuation
The stock valuation mechanism determines Root's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Root Inc based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Root. We calculate exposure to Root's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Root's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 387.7 M | 407 M | |
| Pretax Profit Margin | 0.02 | 0.02 | |
| Operating Profit Margin | 0.02 | 0.02 | |
| Net Profit Margin | 0.02 | 0.02 | |
| Gross Profit Margin | 0.26 | 0.27 |
Root Growth Indicators
Investing in growth stocks can be very risky. If the company such as Root 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 | 16.9 M | |
| Forward Price Earnings | 2.5233 |
Root Current Valuation Indicators
Root'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 Root'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 Root, 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 Root'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 Root's worth.Additional Tools for Root Stock Analysis
When running Root's price analysis, check to measure Root'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 Root is operating at the current time. Most of Root's value examination focuses on studying past and present price action to predict the probability of Root's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Root's price. Additionally, you may evaluate how the addition of Root to your portfolios can decrease your overall portfolio volatility.