Five9 Valuation

FIVN Stock  USD 61.26  1.36  2.27%   
At this time, the firm appears to be undervalued. Five9 Inc shows a prevailing Real Value of $68.27 per share. The current price of the firm is $61.26. Our model computes the value of Five9 Inc from reviewing the firm fundamentals such as Profit Margin of (0.09) %, current valuation of 4.46 B, and Shares Outstanding of 73.33 M as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise obtaining undervalued instruments and abandoning overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
Price Book
8.1641
Enterprise Value
4.5 B
Enterprise Value Ebitda
(419.64)
Price Sales
4.8241
Forward PE
27.7008
Undervalued
Today
61.26
Please note that Five9's price fluctuation is very steady at this time. Calculation of the real value of Five9 Inc is based on 3 months time horizon. Increasing Five9's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Five9 Inc is useful when determining the fair value of the Five9 stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Five9. Since Five9 is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Five9 Stock. However, Five9's 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  61.26 Real  68.27 Target  90.6 Hype  61.96 Naive  65.64
The real value of a stock, also known as the intrinsic value, is the underlying worth of a company that is reflected in its stock price. It is based on the company's financial performance, assets, liabilities, growth prospects, management team, industry conditions, and other relevant factors. The real value of a stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, price-to-book ratio, and other valuation metrics. The real value of a stock 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 the stock's price. It is important to note that the real value of a stock is not a fixed number and may change over time based on changes in the company's performance and other relevant factors.
68.27
Real Value
71.12
Upside
Estimating the potential upside or downside of Five9 Inc helps investors to forecast how Five9 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 Five9 more accurately as focusing exclusively on Five9's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.370.380.39
Details
Hype
Prediction
LowEstimatedHigh
59.1161.9664.81
Details
Naive
Forecast
LowNext ValueHigh
62.7965.6468.50
Details
23 Analysts
Consensus
LowTarget PriceHigh
82.4590.60100.57
Details

Five9 Investments

(246.58 Million)

Five9 Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Five9's current stock value. Our valuation model uses many indicators to compare Five9 value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Five9 competition to find correlations between indicators driving Five9's intrinsic value. More Info.
Five9 Inc is rated # 5 in beta category among related companies. It is rated below average in price to earning category among related companies . . Comparative valuation analysis is a catch-all model that can be used if you cannot value Five9 by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Five9's 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 Five9's 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 Five9's 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 Five9 and how it compares across the competition.

About Five9 Valuation

The stock valuation mechanism determines the current worth of Five9 Inc on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Five9 Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Five9 Inc based exclusively on its fundamental and basic technical indicators. By analyzing Five9'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 Five9'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 Five9. We calculate exposure to Five9's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Five9's related companies.
Last ReportedProjected for 2024
Gross Profit467.9 M491.3 M
Pretax Profit Margin(0.09)(0.09)
Operating Profit Margin(0.1)(0.10)
Net Loss(0.09)(0.09)
Gross Profit Margin 0.51  0.42 

8 Steps to conduct Five9's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Five9's 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 Five9's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Five9's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Five9's revenue streams: Identify Five9's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Five9's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Five9's growth potential: Evaluate Five9's management, business model, and growth potential.
  • Determine Five9's 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 Five9's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

Five9 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 Five9 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 Outstanding72 M
Quarterly Earnings Growth Y O Y-0.789
Forward Price Earnings27.7008

Five9 Current Valuation Indicators

Valuation refers to the process of determining the present value of Five9 Inc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Five9 we look at many different elements of the entity such as Five9's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Five9's 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 Five9'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 Five9, 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 Five9'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 Five9's worth.
When determining whether Five9 Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Five9's 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 Five9 Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Five9 Inc Stock:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Five9 Inc. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in real.
You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

Complementary Tools for Five9 Stock analysis

When running Five9's price analysis, check to measure Five9'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 Five9 is operating at the current time. Most of Five9's value examination focuses on studying past and present price action to predict the probability of Five9's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Five9's price. Additionally, you may evaluate how the addition of Five9 to your portfolios can decrease your overall portfolio volatility.
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Is Five9's 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 Five9. If investors know Five9 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 Five9 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
(0.79)
Earnings Share
(1.13)
Revenue Per Share
12.637
Quarterly Revenue Growth
0.147
Return On Assets
(0.04)
The market value of Five9 Inc is measured differently than its book value, which is the value of Five9 that is recorded on the company's balance sheet. Investors also form their own opinion of Five9's value that differs from its market value or its book value, called intrinsic value, which is Five9's 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 Five9's market value can be influenced by many factors that don't directly affect Five9's 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 Five9's value and its price as these two are different measures arrived at by different means. Investors typically determine if Five9 is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Five9's 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.