Herbalife Nutrition Valuation

HLF Stock  USD 10.05  0.58  6.12%   
At this time, the firm appears to be undervalued. Herbalife Nutrition retains a regular Real Value of $12.15 per share. The prevalent price of the firm is $10.05. Our model calculates the value of Herbalife Nutrition from evaluating the firm fundamentals such as Profit Margin of 0.03 %, shares outstanding of 99.79 M, and Return On Asset of 0.0926 as well as inspecting its technical indicators and probability of bankruptcy. In general, most investors encourage locking in undervalued assets and disposing overvalued assets since, at some point, asset prices and their ongoing real values will come together.
Enterprise Value
3.1 B
Enterprise Value Ebitda
6.5103
Price Sales
0.1867
Forward PE
4.1169
Trailing PE
6.669
Undervalued
Today
10.05
Please note that Herbalife Nutrition's price fluctuation is slightly risky at this time. Calculation of the real value of Herbalife Nutrition is based on 3 months time horizon. Increasing Herbalife Nutrition's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Herbalife Nutrition is useful when determining the fair value of the Herbalife stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Herbalife Nutrition. Since Herbalife Nutrition is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Herbalife Stock. However, Herbalife Nutrition'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  10.05 Real  12.15 Target  20.7 Hype  9.79 Naive  8.68
The real value of Herbalife Stock, also known as its intrinsic value, is the underlying worth of Herbalife Nutrition Company, which is reflected in its stock price. It is based on Herbalife Nutrition's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Herbalife Nutrition's 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 Herbalife Nutrition's 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.
12.15
Real Value
17.40
Upside
Estimating the potential upside or downside of Herbalife Nutrition helps investors to forecast how Herbalife 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 Herbalife Nutrition more accurately as focusing exclusively on Herbalife Nutrition's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.310.340.37
Details
Hype
Prediction
LowEstimatedHigh
4.549.7915.04
Details
Naive
Forecast
LowNext ValueHigh
3.428.6813.93
Details
6 Analysts
Consensus
LowTarget PriceHigh
18.8420.7022.98
Details

Herbalife Nutrition Investments

(149.52 Million)

Herbalife Nutrition Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Herbalife Nutrition's current stock value. Our valuation model uses many indicators to compare Herbalife Nutrition value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Herbalife Nutrition competition to find correlations between indicators driving Herbalife Nutrition's intrinsic value. More Info.
Herbalife Nutrition is rated # 5 in price to earning category among related companies. It is rated # 3 in net asset category among related companies making up about  512,664,234  of Net Asset per Price To Earning. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Herbalife Nutrition by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Herbalife Nutrition'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 Herbalife Nutrition'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 Herbalife Nutrition'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 Herbalife Nutrition and how it compares across the competition.

About Herbalife Nutrition Valuation

The stock valuation mechanism determines the current worth of Herbalife Nutrition on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Herbalife Nutrition. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Herbalife Nutrition based exclusively on its fundamental and basic technical indicators. By analyzing Herbalife Nutrition'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 Herbalife Nutrition'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 Herbalife Nutrition. We calculate exposure to Herbalife Nutrition's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Herbalife Nutrition's related companies.
Last ReportedProjected for 2024
Gross Profit3.9 B2.9 B
Pretax Profit Margin 0.04  0.04 
Operating Profit Margin 0.07  0.07 
Net Profit Margin 0.03  0.03 
Gross Profit Margin 0.76  0.88 

8 Steps to conduct Herbalife Nutrition's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Herbalife Nutrition'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 Herbalife Nutrition's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Herbalife Nutrition's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Herbalife Nutrition's revenue streams: Identify Herbalife Nutrition's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Herbalife Nutrition's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Herbalife Nutrition's growth potential: Evaluate Herbalife Nutrition's management, business model, and growth potential.
  • Determine Herbalife Nutrition'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 Herbalife Nutrition'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.

Herbalife Nutrition 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 Herbalife Nutrition 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 Outstanding100.2 M
Quarterly Earnings Growth Y O Y-0.813
Forward Price Earnings4.1169

Herbalife Nutrition Current Valuation Indicators

Valuation refers to the process of determining the present value of Herbalife Nutrition and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Herbalife we look at many different elements of the entity such as Herbalife's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Herbalife Nutrition'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 Herbalife Nutrition'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 Herbalife Nutrition, 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 Herbalife Nutrition'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 Herbalife Nutrition's worth.
When determining whether Herbalife Nutrition is a strong investment it is important to analyze Herbalife Nutrition's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Herbalife Nutrition's future performance. For an informed investment choice regarding Herbalife Stock, refer to the following important reports:
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Herbalife Nutrition. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis.
For more detail on how to invest in Herbalife Stock please use our How to Invest in Herbalife Nutrition guide.
You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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When running Herbalife Nutrition's price analysis, check to measure Herbalife Nutrition'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 Herbalife Nutrition is operating at the current time. Most of Herbalife Nutrition's value examination focuses on studying past and present price action to predict the probability of Herbalife Nutrition's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Herbalife Nutrition's price. Additionally, you may evaluate how the addition of Herbalife Nutrition to your portfolios can decrease your overall portfolio volatility.
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Is Herbalife Nutrition'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 Herbalife Nutrition. If investors know Herbalife 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 Herbalife Nutrition 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
(0.81)
Earnings Share
1.42
Revenue Per Share
51.135
Quarterly Revenue Growth
0.029
Return On Assets
0.0926
The market value of Herbalife Nutrition is measured differently than its book value, which is the value of Herbalife that is recorded on the company's balance sheet. Investors also form their own opinion of Herbalife Nutrition's value that differs from its market value or its book value, called intrinsic value, which is Herbalife Nutrition'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 Herbalife Nutrition's market value can be influenced by many factors that don't directly affect Herbalife Nutrition'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 Herbalife Nutrition's value and its price as these two are different measures arrived at by different means. Investors typically determine if Herbalife Nutrition is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Herbalife Nutrition'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.