* Note: Prices are in Million (M) USD.
Description:
Medifast, Inc. manufactures and distributes weight loss, weight management, healthy living products, and other consumable health and nutrition products in the United States and Asia-Pacific. The company is headquartered in Baltimore, Maryland.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $58 M
Debt : $3 M
EBITDA : $-19 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Consumer staples
Industry: Personal services
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $44 M
Average Revenue: $495 M
Revenue Converted To Free Cash Flow (%): 8.9%
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 (2025-12-31): $386 M
Revenue 5 Years Ago (2020-12-31): $935 M
Total Growth over 5 Years: -58.7%
5-Year Revenue CAGR (Historical): -16.2%
Forward 5-Year CAGR (Tapered): -14.6%
Since historical Revenue CAGR is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-12-31): $11 M
Share Count 5 Years Ago (2021-12-31): $12 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): $-1.05
Trailing 12-Month Earnings Per Share (EPS): $-0.86
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-1.05
- Latest/TTM EPS: $-0.86
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 20 valid ROE years (max 20).Average ROE: 31.1%
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: $12.15
52-Week Low: $9.22
Threshold Price (15% Above 52-Week Low): $10.60
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: $136 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 0.5% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share, latest positive annual) (2025-12-31): $0.11
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 16 points to above MEDIFAST INC (MED) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• ROE Based PE 31.12 (>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.
Last 19 Years Avg PE 15.21, Fair Value PE 12, Industry Based PE 18, RCFC Based PE 8.9, ROE Based PE 31.12, Risk-Free Anchored PE (25% MoS) 15.03. Based on these 6 values, average assigned is 16.71. The fair value of MEDIFAST INC (MED) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
