Vroom Valuation
| VRM Stock | USD 5.36 0.15 2.72% |
At this time, the company appears to be overvalued. Vroom Inc has a current Real Value of $3.17 per share. The regular price of the company is $5.36. Our model measures the value of Vroom Inc from inspecting the company fundamentals such as Return On Equity of -2.75, shares outstanding of 1.82 M, and Operating Margin of (0.66) % as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Vroom's valuation include:
Price Book 2.144 | Enterprise Value 1 B | Enterprise Value Ebitda (4.04) | Price Sales 0.0157 | Enterprise Value Revenue 1.1444 |
Overvalued
Today
Please note that Vroom's price fluctuation is dangerous at this time. Calculation of the real value of Vroom Inc is based on 3 months time horizon. Increasing Vroom's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Vroom stock is determined by what a typical buyer is willing to pay for full or partial control of Vroom Inc. Since Vroom is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Vroom Stock. However, Vroom'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 5.36 | Real 3.17 | Target 1.06 | Hype 5.15 | Naive 3.13 |
The intrinsic value of Vroom'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 Vroom'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 Vroom Inc helps investors to forecast how Vroom 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 Vroom more accurately as focusing exclusively on Vroom'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 Vroom's intrinsic value based on its ongoing forecasts of Vroom's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Vroom's closest peers.
Vroom Cash |
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Vroom Valuation Trend
Knowing Vroom's actual value is paramount for traders when making sound investment determinations. Using both Vroom'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.
Vroom Revenue by Product
Vroom Total Value Analysis
Vroom Inc is at this time projected to have company total value of 1.02 B with market capitalization of 10.04 M, debt of 1.23 B, and cash on hands of 546.07 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Vroom fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
1.02 B | 10.04 M | 1.23 B | 546.07 M |
Vroom Investor Information
About 28.0% of the company outstanding shares are owned by institutional investors. The book value of Vroom was at this time reported as 2.59. The company has Price/Earnings To Growth (PEG) ratio of 0.02. Vroom Inc recorded a loss per share of 232.92. The entity had not issued any dividends in recent years. The firm had 1:80 split on the 14th of February 2024. Based on the analysis of Vroom's profitability, liquidity, and operating efficiency, Vroom Inc is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.Vroom Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Vroom has an asset utilization ratio of 60.54 percent. This suggests that the Company is making $0.61 for each dollar of assets. An increasing asset utilization means that Vroom Inc is more efficient with each dollar of assets it utilizes for everyday operations.Vroom Ownership Allocation
The market capitalization of Vroom is $10.04 Million. About 69.94 % of Vroom outstanding shares are held by general public with 2.18 (%) owned by insiders and only 27.88 % by institutional holders. Please note that on December 22, 2021, Senator Bill Hagerty of US Senate acquired under $15k worth of Vroom Inc's common stock.Vroom Profitability Analysis
The company reported the last year's revenue of 893.2 M. Reported Net Loss for the year was (365.54 M) with profit before taxes, overhead, and interest of 244.79 M.About Vroom Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Vroom Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Vroom Inc based exclusively on its fundamental and basic technical indicators. By analyzing Vroom's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Vroom's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Vroom. We calculate exposure to Vroom's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Vroom's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 161.9 M | 146.5 M | |
| Pretax Profit Margin | (0.41) | (0.43) | |
| Operating Profit Margin | (0.30) | (0.32) | |
| Net Loss | (0.41) | (0.43) | |
| Gross Profit Margin | 0.18 | 0.19 |
Vroom Growth Indicators
Investing in growth stocks can be very risky. If the company such as Vroom 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 | 1.7 M |
Vroom Current Valuation Indicators
Vroom'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 Vroom'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 Vroom, 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 Vroom'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 Vroom's worth.When determining whether Vroom Inc is a strong investment it is important to analyze Vroom's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Vroom's future performance. For an informed investment choice regarding Vroom Stock, refer to the following important reports: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Vroom Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Is Automotive Retail 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 Vroom. If investors know Vroom 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 Vroom listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (232.92) | Revenue Per Share 356.465 | Quarterly Revenue Growth (0.90) | Return On Assets (0.09) | Return On Equity (2.75) |
The market value of Vroom Inc is measured differently than its book value, which is the value of Vroom that is recorded on the company's balance sheet. Investors also form their own opinion of Vroom's value that differs from its market value or its book value, called intrinsic value, which is Vroom'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 Vroom's market value can be influenced by many factors that don't directly affect Vroom'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 Vroom's value and its price as these two are different measures arrived at by different means. Investors typically determine if Vroom is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vroom'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.