* Note: Prices are in Million (M) USD.
Description:
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $4,416 M
Debt : $0 M
EBITDA : $1,350 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Finance and insurance
Industry: Investment banking and securities dealing
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: 68.22
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 6 overlapping fiscal years (max 20).Average Free Cash Flow: $263 M
Average Revenue: $1,537 M
Revenue Converted To Free Cash Flow (%): 17.1%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $2,951 M
Revenue 4 Years Ago (2020-12-31): $958 M
Last 5 Years Average Revenue Growth: 42%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $906 M
Share Count 5 Years Ago (2020-12-31): $850 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.61
Trailing 12-Month Earnings Per Share (EPS): $1.43
Average Earnings Per Share (EPS): $1.52
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 4 valid ROE years (max 20).Average ROE: -13.9%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $104
52-Week Low: $14
Threshold Price (15% Above 52-Week Low): $16
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: $93,625 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 0.20% exposure of Total Portfolio.
Value-Trade has assigned 18 points to above Robinhood Markets Inc (HOOD) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Growth Based PE
41.00 (>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 1 Years Avg P/E (23.30)
× EPS ($1.52) = $35.42.
Last 1 Years Avg PE 23.3, Fair Value PE 12, Industry Based PE 15, Growth Based PE 41, RCFC Based PE 23.67, ROE Based PE 10, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 20.29. Value-Trades has assined P/E value 20.29. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.52.
The fair value of Robinhood Markets Inc (HOOD) stock should be (20.29 x $1.52) = $30.85.
