Carvana Valuation
| CVNA Stock | USD 101.10 2.14 2.16% |
At this time, the firm appears to be fairly valued. Carvana shows a prevailing Real Value of $102.53 per share. The current price of the firm is $101.1. Our model approximates the value of Carvana from analyzing the firm fundamentals such as Return On Equity of -12.69, current valuation of 16.95 B, and Profit Margin of 0.06 % as well as examining its technical indicators and probability of bankruptcy.
Fairly Valued
Today
Please note that Carvana's price fluctuation is very steady at this time. Calculation of the real value of Carvana is based on 3 months time horizon. Increasing Carvana's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Carvana is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Carvana Stock. However, Carvana'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 101.1 | Real 102.53 | Hype 101.1 | Naive 83.21 |
The real value of Carvana Stock, also known as its intrinsic value, is the underlying worth of Carvana Company, which is reflected in its stock price. It is based on Carvana's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Carvana'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, or news.
Estimating the potential upside or downside of Carvana Co helps investors to forecast how Carvana 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 Carvana more accurately as focusing exclusively on Carvana's fundamentals will not take into account other important factors: Carvana Total Value Analysis
Carvana Co is currently estimated to have valuation of 16.95 B with market capitalization of 17.81 B, debt of 6.71 B, and cash on hands of 666 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Carvana fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
| 16.95 B | 17.81 B | 6.71 B | 666 M |
Carvana Investor Information
About 100.0% of the company shares are held by institutions such as insurance companies. The company recorded a loss per share of 4.18. Carvana had not issued any dividends in recent years. Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Carvana Co. was founded in 2012 and is headquartered in Tempe, Arizona. Carvana Co operates under Internet Retail classification in the United States and is traded on New York Stock Exchange. It employs 21000 people. For more info on Carvana Co please contact Ernest Garcia at 602 922 9866 or go to https://www.carvana.com.Carvana Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Carvana has an asset utilization ratio of 152.33 percent. This suggests that the Company is making $1.52 for each dollar of assets. An increasing asset utilization means that Carvana Co is more efficient with each dollar of assets it utilizes for everyday operations.Carvana Ownership Allocation
The majority of Carvana Co outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Carvana to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Carvana. Please pay attention to any change in the institutional holdings of Carvana Co as this could imply that something significant has changed or is about to change at the company. Also note that nearly six million seven hundred sixty thousand invesors are currently shorting Carvana expressing very little confidence in its future performance.Carvana Profitability Analysis
The company reported the previous year's revenue of 10.77 B. Net Income was 150 M with profit before overhead, payroll, taxes, and interest of 1.25 B. Profitability |
| Values |
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Carvana'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 Carvana and how it compares across the competition.
About Carvana Valuation
The stock valuation mechanism determines the current worth of Carvana Co on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Carvana Co. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Carvana based exclusively on its fundamental and basic technical indicators. By analyzing Carvana'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 Carvana'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 Carvana. We calculate exposure to Carvana's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Carvana's related companies.Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Carvana Co. was founded in 2012 and is headquartered in Tempe, Arizona. Carvana Co operates under Internet Retail classification in the United States and is traded on New York Stock Exchange. It employs 21000 people.
8 Steps to conduct Carvana's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Carvana'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 Carvana's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Carvana's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Carvana's revenue streams: Identify Carvana's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Carvana's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Carvana's growth potential: Evaluate Carvana's management, business model, and growth potential.
- Determine Carvana'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 Carvana's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Carvana 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 Carvana 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 | 200.6 M |
Complementary Tools for Carvana Stock analysis
When running Carvana's price analysis, check to measure Carvana'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 Carvana is operating at the current time. Most of Carvana's value examination focuses on studying past and present price action to predict the probability of Carvana's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Carvana's price. Additionally, you may evaluate how the addition of Carvana to your portfolios can decrease your overall portfolio volatility.
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