Red Violet Valuation
| RDVT Stock | USD 17.63 0.20 1.15% |
At this time, the company appears to be undervalued. Red Violet holds a recent Real Value of $21.56 per share. The prevailing price of the company is $17.63. Our model determines the value of Red Violet from analyzing the company fundamentals such as Shares Outstanding of 13.74 M, operating margin of (0.06) %, and Return On Equity of 0.17 as well as examining its technical indicators and probability of bankruptcy. In general, most investors support acquiring undervalued entities and selling overvalued entities since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting Red Violet's valuation include:
Price Book 2.9938 | Enterprise Value 216.7 M | Enterprise Value Ebitda 21.0332 | Price Sales 4.2661 | Trailing PE 18.3646 |
Undervalued
Today
Please note that Red Violet's price fluctuation is very steady at this time. Calculation of the real value of Red Violet is based on 3 months time horizon. Increasing Red Violet's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Red Violet is useful when determining the fair value of the Red stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Red Violet. Since Red Violet is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Red Stock. However, Red Violet'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 17.63 | Real 21.56 | Target 25.0 | Hype 17.63 | Naive 18.42 |
The real value of Red Stock, also known as its intrinsic value, is the underlying worth of Red Violet Company, which is reflected in its stock price. It is based on Red Violet's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Red Violet'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 Red Violet'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 Red Violet helps investors to forecast how Red 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 Red Violet more accurately as focusing exclusively on Red Violet's 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 Red Violet's intrinsic value based on its ongoing forecasts of Red Violet's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Red Violet's closest peers. When choosing an evaluation method for Red Violet, 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.
Red Violet Investments |
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Red Valuation Trend
Knowing Red Violet's actual value is paramount for traders to make sound investment determinations. Red Violet's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Red Violet's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Red Violet's 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.
Red Market Cap
Red Violet is rated fifth in market capitalization category among related companies. Market capitalization of Industrials industry is at this time estimated at about 3.14 Billion. Red Violet holds roughly 242.19 Million in market capitalization claiming about 8% of equities under Industrials industry.Red Violet Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Red Violet's current stock value. Our valuation model uses many indicators to compare Red Violet value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Red Violet competition to find correlations between indicators driving Red Violet's intrinsic value. More Info.Red Violet is currently regarded as top stock in price to earning category among related companies. It is currently regarded as top 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 Red Violet is roughly 52.38 . Price To Book Ratio is likely to drop to 3.08 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Red Violet by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Red Violet'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 Red Violet'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 Red Violet'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 Red Violet and how it compares across the competition.
About Red Violet Valuation
The stock valuation mechanism determines the current worth of Red Violet on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Red Violet. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Red Violet based exclusively on its fundamental and basic technical indicators. By analyzing Red Violet'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 Red Violet'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 Red Violet. We calculate exposure to Red Violet's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Red Violet's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 47.1 M | 49.5 M | |
| Pretax Profit Margin | 0.06 | 0.07 | |
| Operating Profit Margin | 0.04 | 0.04 | |
| Net Profit Margin | 0.22 | 0.24 | |
| Gross Profit Margin | 0.78 | 0.42 |
8 Steps to conduct Red Violet's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Red Violet'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 Red Violet's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Red Violet's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Red Violet's revenue streams: Identify Red Violet's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Red Violet's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Red Violet's growth potential: Evaluate Red Violet's management, business model, and growth potential.
- Determine Red Violet'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 Red Violet's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Red Violet 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 Red Violet 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 | 14.1 M | |
| Quarterly Earnings Growth Y O Y | 4.438 |
Red Violet Current Valuation Indicators
Valuation refers to the process of determining the present value of Red Violet and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Red we look at many different elements of the entity such as Red's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Red Violet'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 Red Violet'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 Red Violet, 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 Red Violet'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 Red Violet's worth.When determining whether Red Violet is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Red Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Red Violet Stock. Highlighted below are key reports to facilitate an investment decision about Red Violet Stock: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Red Violet. 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. For more information on how to buy Red Stock please use our How to Invest in Red Violet guide.You can also try the CEOs Directory module to screen CEOs from public companies around the world.
Complementary Tools for Red Stock analysis
When running Red Violet's price analysis, check to measure Red Violet'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 Red Violet is operating at the current time. Most of Red Violet's value examination focuses on studying past and present price action to predict the probability of Red Violet's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Red Violet's price. Additionally, you may evaluate how the addition of Red Violet to your portfolios can decrease your overall portfolio volatility.
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Is Red Violet'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 Red Violet. If investors know Red 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 Red Violet 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 4.438 | Earnings Share 0.96 | Revenue Per Share 4.308 | Quarterly Revenue Growth 0.152 | Return On Assets 0.0184 |
The market value of Red Violet is measured differently than its book value, which is the value of Red that is recorded on the company's balance sheet. Investors also form their own opinion of Red Violet's value that differs from its market value or its book value, called intrinsic value, which is Red Violet'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 Red Violet's market value can be influenced by many factors that don't directly affect Red Violet'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 Red Violet's value and its price as these two are different measures arrived at by different means. Investors typically determine if Red Violet is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Red Violet'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.