Aarons Valuation
| AAN Stock | USD 7.48 0.17 2.33% |
At this time, the firm appears to be undervalued. Aarons shows a prevailing Real Value of $8.7 per share. The current price of the firm is $7.48. Our model approximates the value of Aarons from analyzing the firm fundamentals such as Return On Equity of 0.0041, operating margin of 0.02 %, and Profit Margin of 0 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor obtaining undervalued instruments and abandoning overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting Aarons' valuation include:
Price Book 0.3196 | Enterprise Value 859.6 M | Enterprise Value Ebitda 1.5192 | Price Sales 0.1025 | Forward PE 178.5714 |
Undervalued
Today
Please note that Aarons' price fluctuation is somewhat reliable at this time. Calculation of the real value of Aarons is based on 3 months time horizon. Increasing Aarons' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for The Aarons is useful when determining the fair value of the Aarons stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Aarons. Since Aarons is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Aarons Stock. However, Aarons' 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 7.48 | Real 8.7 | Target 13.55 | Hype 7.48 |
The real value of Aarons Stock, also known as its intrinsic value, is the underlying worth of Aarons Company, which is reflected in its stock price. It is based on Aarons' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Aarons' 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 Aarons' 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 The Aarons helps investors to forecast how Aarons 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 Aarons more accurately as focusing exclusively on Aarons' 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 Aarons' intrinsic value based on its ongoing forecasts of Aarons' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Aarons' closest peers. When choosing an evaluation method for Aarons, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Aarons Investments |
|
Aarons Valuation Trend
Knowing Aarons' actual value is paramount for traders to make sound investment determinations. Aarons' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Aarons' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Aarons' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Aarons Market Cap
The Aarons is number one stock in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is presently estimated at about 16.94 Billion. Aarons claims roughly 223.87 Million in market capitalization contributing just under 2% to stocks in Consumer Discretionary industry.Aarons Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Aarons's current stock value. Our valuation model uses many indicators to compare Aarons value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Aarons competition to find correlations between indicators driving Aarons's intrinsic value. More Info.The Aarons is number one stock in price to earning category among related companies. It is number one stock in price to book category among related companies fabricating about 0.02 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for The Aarons is roughly 60.48 . As of the 20th of April 2024, Price To Book Ratio is likely to drop to 0.46. Comparative valuation analysis is a catch-all model that can be used if you cannot value Aarons by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Aarons' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Aarons' earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Aarons' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Aarons and how it compares across the competition.
About Aarons Valuation
The stock valuation mechanism determines the current worth of The Aarons on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of The Aarons. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Aarons based exclusively on its fundamental and basic technical indicators. By analyzing Aarons's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Aarons's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Aarons. We calculate exposure to Aarons's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Aarons's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.1 B | 1.2 B | |
| Pretax Profit Margin | (0.0005) | (0.0005) | |
| Operating Profit Margin | 0.01 | 0.01 | |
| Net Profit Margin | 0 | 0 | |
| Gross Profit Margin | 0.52 | 0.84 |
Aarons Quarterly Retained Earnings |
|
8 Steps to conduct Aarons' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Aarons' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Aarons' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Aarons' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Aarons' revenue streams: Identify Aarons' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Aarons' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Aarons' growth potential: Evaluate Aarons' management, business model, and growth potential.
- Determine Aarons' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Aarons' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Aarons represents a small ownership stake in the entity. As a stockholder of Aarons, 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.
Aarons Dividends Analysis For Valuation
At this time, Aarons' Dividend Yield is very stable compared to the past year. As of the 20th of April 2024, Dividend Payout Ratio is likely to grow to 5.58, though Dividends Paid is likely to grow to (14.2 M). . As of the 20th of April 2024, Price Earnings Ratio is likely to grow to 124.55, while Retained Earnings are likely to drop about 62.9 M.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -15 M | -14.2 M | |
| Dividend Yield | 0.04 | 0.05 | |
| Dividend Payout Ratio | 5.31 | 5.58 | |
| Dividend Paid And Capex Coverage Ratio | (2.27) | (2.39) |
There are various types of dividends Aarons 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 Aarons 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 The Aarons directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Aarons pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Aarons by the value of the dividends paid out.
Aarons Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Aarons 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 | 31.1 M | |
| Quarterly Earnings Growth Y O Y | -0.397 | |
| Forward Price Earnings | 178.5714 |
Aarons Current Valuation Indicators
Valuation refers to the process of determining the present value of The Aarons and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Aarons we look at many different elements of the entity such as Aarons's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Aarons' valuation analysis is also 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 Aarons' 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 Aarons, 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 Aarons' 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 Aarons' worth.When determining whether Aarons offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Aarons' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of The Aarons Stock. Outlined below are crucial reports that will aid in making a well-informed decision on The Aarons Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in The Aarons. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. Note that the Aarons information on this page should be used as a complementary analysis to other Aarons' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
Complementary Tools for Aarons Stock analysis
When running Aarons' price analysis, check to measure Aarons' 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 Aarons is operating at the current time. Most of Aarons' value examination focuses on studying past and present price action to predict the probability of Aarons' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Aarons' price. Additionally, you may evaluate how the addition of Aarons to your portfolios can decrease your overall portfolio volatility.
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stocks Directory Find actively traded stocks across global markets |
Is Aarons' industry 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 Aarons. If investors know Aarons 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 Aarons 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 (0.40) | Dividend Share 0.5 | Earnings Share 0.09 | Revenue Per Share 69.527 | Quarterly Revenue Growth (0.10) |
The market value of Aarons is measured differently than its book value, which is the value of Aarons that is recorded on the company's balance sheet. Investors also form their own opinion of Aarons' value that differs from its market value or its book value, called intrinsic value, which is Aarons' 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 Aarons' market value can be influenced by many factors that don't directly affect Aarons' 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 Aarons' value and its price as these two are different measures arrived at by different means. Investors typically determine if Aarons is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Aarons' 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.