Root Valuation
| ROOT Stock | USD 99.81 0.75 0.76% |
At this time, the company appears to be overvalued. Root Inc holds a recent Real Value of $41.06 per share. The prevailing price of the company is $99.81. Our model determines the value of Root Inc from analyzing the company fundamentals such as Return On Equity of -0.0521, operating margin of 0.11 %, and Shares Outstanding of 10.7 M as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Root's valuation include:
Price Book 8.2855 | Enterprise Value 1.1 B | Price Sales 1.4319 | Forward PE 4.4663 | Enterprise Value Revenue 1.0848 |
Overvalued
Today
Please note that Root's price fluctuation is somewhat reliable 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 99.81, 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 99.81 | Real 41.06 | Target 9.65 | Hype 100.09 | Naive 92.09 |
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.
Root Cash |
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Root Valuation Trend
Root's real value is important for investors to make better decisions and a more accurate overall view of Root's financial worth over time. Using both Root'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.
Root Total Value Analysis
Root Inc is at this time estimated to have valuation of 1.13 B with market capitalization of 1.5 B, debt of 299 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 |
1.13 B | 1.5 B | 299 M | 886.1 M |
Root Investor Information
About 70.0% of the company shares are owned by institutional investors. The company recorded a loss per share of 1.15. Root Inc had not issued any dividends in recent years. The entity 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 not in a good financial situation at the present time. It has a very high chance of going through financial crunch in December.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 33.76 percent. This implies that the Company is making $0.34 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 Ownership Allocation
The market capitalization of Root Inc is $1.5 Billion. The majority of Root Inc outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Root Inc to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Root. Please pay attention to any change in the institutional holdings of Root Inc as this could imply that something significant has changed or is about to change at the company. 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.Root Profitability Analysis
The company reported the previous year's revenue of 455 M. Net Loss for the year was (147.4 M) with loss before overhead, payroll, taxes, and interest of (40.2 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 | 455 M | 328.4 M | |
| Pretax Profit Margin | (0.32) | (0.34) | |
| Operating Profit Margin | (0.22) | (0.23) | |
| Net Loss | (0.32) | (0.34) |
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 | 14.4 M | |
| Forward Price Earnings | 4.4663 |
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.