Foot Locker Valuation
| FL Stock | USD 25.15 0.16 0.63% |
At this time, the firm appears to be overvalued. Foot Locker shows a prevailing Real Value of $22.67 per share. The current price of the firm is $25.15. Our model computes the value of Foot Locker from reviewing the firm fundamentals such as Shares Outstanding of 94.85 M, profit margin of (0.04) %, and Current Valuation of 5.03 B as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Foot Locker's valuation include:
Price Book 0.8287 | Enterprise Value 5 B | Enterprise Value Ebitda 8.0107 | Price Sales 0.2926 | Forward PE 11.9332 |
Overvalued
Today
Please note that Foot Locker's price fluctuation is not too volatile at this time. Calculation of the real value of Foot Locker is based on 3 months time horizon. Increasing Foot Locker'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 Foot stock is determined by what a typical buyer is willing to pay for full or partial control of Foot Locker. Since Foot Locker is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Foot Stock. However, Foot Locker'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 25.15 | Real 22.67 | Target 19.89 | Hype 25.26 | Naive 25.89 |
The intrinsic value of Foot Locker'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 Foot Locker's stock price.
Estimating the potential upside or downside of Foot Locker helps investors to forecast how Foot 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 Foot Locker more accurately as focusing exclusively on Foot Locker'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 Foot Locker's intrinsic value based on its ongoing forecasts of Foot Locker's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Foot Locker's closest peers.
Foot Locker Cash |
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Foot Valuation Trend
Knowing Foot Locker's actual value is paramount for traders when making sound investment determinations. Using both Foot Locker'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.
Foot Revenue by Product
Foot Locker Total Value Analysis
Foot Locker is currently expected to have takeover value of 5.03 B with market capitalization of 2.39 B, debt of 2.94 B, and cash on hands of 536 M. Please note that takeover value may be misleading and is a subject to accounting mistakes. We encourage investors to methodically examine all of the Foot Locker fundamentals before making investment evaluation based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
5.03 B | 2.39 B | 2.94 B | 536 M |
Foot Locker Investor Information
About 99.0% of the company shares are owned by institutional investors. The company has price-to-book (P/B) ratio of 0.83. Some equities with similar Price to Book (P/B) outperform the market in the long run. Foot Locker recorded a loss per share of 3.88. The entity last dividend was issued on the 12th of October 2023. The firm had 2:1 split on the 1st of June 1990. Based on the analysis of Foot Locker's profitability, liquidity, and operating efficiency, Foot Locker is performing exceptionally good at the moment. It has a great risk to report excellent financial results in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.11 | 0.0174 |
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| Total Cash From Operating Activities | 86.5 M | 91 M |
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| Operating Income | 134.9 M | 142 M |
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Foot Locker Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Foot Locker has an asset utilization ratio of 118.93 percent. This suggests that the Company is making $1.19 for each dollar of assets. An increasing asset utilization means that Foot Locker is more efficient with each dollar of assets it utilizes for everyday operations.Foot Locker Ownership Allocation
The majority of Foot Locker outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Foot Locker to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Foot Locker. Please pay attention to any change in the institutional holdings of Foot Locker as this could imply that something significant has changed or is about to change at the company.Foot Locker Profitability Analysis
The company generated the yearly revenue of 8.17 B. Annual Net Loss to common stockholders was (330 M) with gross profit of 2.8 B.Foot Locker Past Distributions to stockholders
About Foot Locker Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Foot Locker. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Foot Locker based exclusively on its fundamental and basic technical indicators. By analyzing Foot Locker's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Foot Locker's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Foot Locker. We calculate exposure to Foot Locker's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Foot Locker's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.3 B | 1.7 B | |
| Pretax Profit Margin | (0.05) | 0.11 | |
| Operating Profit Margin | 0.02 | 0.11 | |
| Net Profit Margin | (0.04) | 0.07 | |
| Gross Profit Margin | 0.28 | 0.33 |
Foot Locker Quarterly Retained Earnings |
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A single share of Foot Locker represents a small ownership stake in the entity. As a stockholder of Foot, 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.
Foot Locker Dividends Analysis For Valuation
At this time, Foot Locker's Dividend Payout Ratio is quite stable compared to the past year. Dividend Paid And Capex Coverage Ratio is expected to rise to 2.25 this year, although the value of Dividends Paid is projected to rise to (107.3 M). . At this time, Foot Locker's Earnings Yield is quite stable compared to the past year. Price Earnings Ratio is expected to rise to 14.73 this year, although the value of Retained Earnings will most likely fall to about 1.9 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -113 M | -107.3 M | |
| Dividend Yield | 0.04 | 0.02 | |
| Dividend Payout Ratio | (0.34) | 0.24 | |
| Dividend Paid And Capex Coverage Ratio | 0.26 | 2.25 |
There are various types of dividends Foot Locker 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 Foot 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 Foot Locker directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Foot pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Foot Locker by the value of the dividends paid out.
Foot Locker Growth Indicators
Investing in growth stocks can be very risky. If the company such as Foot Locker 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 | 94.2 M | |
| Quarterly Earnings Growth Y O Y | -0.778 | |
| Forward Price Earnings | 11.9332 |
Foot Locker Current Valuation Indicators
Foot Locker'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 Foot Locker'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 Foot Locker, 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 Foot Locker'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 Foot Locker's worth.Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Foot Locker. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis. For more information on how to buy Foot Stock please use our How to buy in Foot Stock guide.You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Is Specialty 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 Foot Locker. If investors know Foot 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 Foot Locker listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.78) | Earnings Share (3.88) | Revenue Per Share 86.173 | Quarterly Revenue Growth 0.019 | Return On Assets 0.0118 |
The market value of Foot Locker is measured differently than its book value, which is the value of Foot that is recorded on the company's balance sheet. Investors also form their own opinion of Foot Locker's value that differs from its market value or its book value, called intrinsic value, which is Foot Locker'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 Foot Locker's market value can be influenced by many factors that don't directly affect Foot Locker'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 Foot Locker's value and its price as these two are different measures arrived at by different means. Investors typically determine if Foot Locker is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Foot Locker'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.