* Note: Prices are in Million (M) USD.
Description:
Five Below, Inc. is a specialty value retailer in the United States. The company is headquartered in Philadelphia, Pennsylvania.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $427 M
Debt : $1,975 M
EBITDA : $521 M
Net Debt (Debt - Cash): $1,548 M
Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
This criteria used industry in which company operates:
Sector: Consumer cyclical
Industry: Specialty retail
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 28.56
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 16 overlapping fiscal years (max 20).Average Free Cash Flow: $53 M
Average Revenue: $1,506 M
Revenue Converted To Free Cash Flow (%): 3.5%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-01-31): $3,877 M
Revenue 4 Years Ago (2021-01-31): $1,962 M
Last 5 Years Average Revenue Growth: 20%
Since Revenue Growth is between 15 - 20, 4 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-01-31): $55 M
Share Count 5 Years Ago (2021-01-31): $56 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $5.12
Trailing 12-Month Earnings Per Share (EPS): $5.04
Average Earnings Per Share (EPS): $5.08
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 13 valid ROE years (max 20).Average ROE: 22.3%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $145
52-Week Low: $52
Threshold Price (15% Above 52-Week Low): $60
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $7,332 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 19 points to above Five Below Inc (FIVE) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Last 6 Years Avg PE
37.16 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 6 Years Avg P/E (37.16)
× EPS ($5.08) = $188.77.
Last 6 Years Avg PE 37.16, Fair Value PE 12, Industry Based PE 15, Growth Based PE 19, RCFC Based PE 14.83, ROE Based PE 27.81, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 20.41. Value-Trades has assined P/E value 20.41. Since an average (Current Year EPS + Next Year EPS) earning per share is $5.08.
The fair value of Five Below Inc (FIVE) stock should be (20.41 x $5.08) = $103.69.
