Performant Financial Valuation
| PFMT Stock | USD 3.09 0.02 0.65% |
At this time, the company appears to be overvalued. Performant Financial holds a recent Real Value of $2.49 per share. The prevailing price of the company is $3.09. Our model determines the value of Performant Financial from analyzing the company fundamentals such as Return On Equity of -0.0922, shares outstanding of 76.95 M, and Operating Margin of (0.14) % as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Performant Financial's price fluctuation is risky at this time. Calculation of the real value of Performant Financial is based on 3 months time horizon. Increasing Performant Financial's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Performant Financial is useful when determining the fair value of the Performant stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Performant Financial. Since Performant Financial is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Performant Stock. However, Performant Financial'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 3.09 | Real 2.49 | Hype 3.09 | Naive 2.89 |
The real value of Performant Stock, also known as its intrinsic value, is the underlying worth of Performant Financial Company, which is reflected in its stock price. It is based on Performant Financial's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Performant Financial'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 Performant Financial'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.
Estimating the potential upside or downside of Performant Financial helps investors to forecast how Performant 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 Performant Financial more accurately as focusing exclusively on Performant Financial's fundamentals will not take into account other important factors: Performant Financial Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Performant Financial's current stock value. Our valuation model uses many indicators to compare Performant Financial value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Performant Financial competition to find correlations between indicators driving Performant Financial's intrinsic value. More Info.Performant Financial is rated below average in price to earning category among related companies. It is rated below average in price to book category among related companies . Comparative valuation analysis is a catch-all model that can be used if you cannot value Performant Financial by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Performant Financial'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 Performant Financial'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 Performant Financial'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 Performant Financial and how it compares across the competition.
About Performant Financial Valuation
The stock valuation mechanism determines the current worth of Performant Financial on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Performant Financial. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Performant Financial based exclusively on its fundamental and basic technical indicators. By analyzing Performant Financial'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 Performant Financial'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 Performant Financial. We calculate exposure to Performant Financial's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Performant Financial's related companies.Performant Financial Corporation provides technology-enabled audit, recovery, outsource customer, and related analytics services in the United States. Performant Financial Corporation was founded in 1976 and is headquartered in Livermore, California. Performant Financial operates under Specialty Business Services classification in the United States and is traded on NASDAQ Exchange. It employs 929 people.
8 Steps to conduct Performant Financial's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Performant Financial'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 Performant Financial's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Performant Financial's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Performant Financial's revenue streams: Identify Performant Financial's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Performant Financial's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Performant Financial's growth potential: Evaluate Performant Financial's management, business model, and growth potential.
- Determine Performant Financial'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 Performant Financial's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Performant Financial 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 Performant Financial 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 | 76.2 M |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Performant Financial. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population. For more information on how to buy Performant Stock please use our How to Invest in Performant Financial guide.You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Complementary Tools for Performant Stock analysis
When running Performant Financial's price analysis, check to measure Performant Financial'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 Performant Financial is operating at the current time. Most of Performant Financial's value examination focuses on studying past and present price action to predict the probability of Performant Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Performant Financial's price. Additionally, you may evaluate how the addition of Performant Financial to your portfolios can decrease your overall portfolio volatility.
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Is Performant Financial'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 Performant Financial. If investors know Performant 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 Performant Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Performant Financial is measured differently than its book value, which is the value of Performant that is recorded on the company's balance sheet. Investors also form their own opinion of Performant Financial's value that differs from its market value or its book value, called intrinsic value, which is Performant Financial'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 Performant Financial's market value can be influenced by many factors that don't directly affect Performant Financial'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 Performant Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Performant Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Performant Financial'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.