Freshpet Valuation
| FRPT Stock | USD 105.24 0.49 0.47% |
At this time, the firm appears to be fairly valued. Freshpet shows a prevailing Real Value of $103.99 per share. The current price of the firm is $105.24. Our model computes the value of Freshpet from reviewing the firm fundamentals such as Profit Margin of (0.04) %, current valuation of 5.19 B, and Shares Outstanding of 48.29 M as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise acquiring undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will submerge. Key fundamental drivers impacting Freshpet's valuation include:
Price Book 5.4994 | Enterprise Value 5.2 B | Enterprise Value Ebitda 130.6953 | Price Sales 6.8381 | Forward PE 104.1667 |
Fairly Valued
Today
Please note that Freshpet's price fluctuation is very steady at this time. Calculation of the real value of Freshpet is based on 3 months time horizon. Increasing Freshpet's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Freshpet is useful when determining the fair value of the Freshpet stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Freshpet. Since Freshpet is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Freshpet Stock. However, Freshpet'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 105.24 | Real 103.99 | Target 87.05 | Hype 105.93 |
The real value of Freshpet Stock, also known as its intrinsic value, is the underlying worth of Freshpet Company, which is reflected in its stock price. It is based on Freshpet's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Freshpet'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 Freshpet'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 Freshpet helps investors to forecast how Freshpet 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 Freshpet more accurately as focusing exclusively on Freshpet'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 Freshpet's intrinsic value based on its ongoing forecasts of Freshpet's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Freshpet's closest peers. When choosing an evaluation method for Freshpet, 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.
Freshpet Investments |
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Freshpet Valuation Trend
Knowing Freshpet's actual value is paramount for traders to make sound investment determinations. Freshpet's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Freshpet's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Freshpet'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.
Freshpet Market Cap
Freshpet is rated # 3 in market capitalization category among related companies. Market capitalization of Consumer Staples industry is currently estimated at about 54.2 Billion. Freshpet holds roughly 5.06 Billion in market capitalization claiming about 9% of stocks in Consumer Staples industry.Freshpet Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Freshpet's current stock value. Our valuation model uses many indicators to compare Freshpet value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Freshpet competition to find correlations between indicators driving Freshpet's intrinsic value. More Info.Freshpet is one of the top stocks in price to book category among related companies. It is one of the top stocks in price to sales category among related companies fabricating about 1.24 of Price To Sales per Price To Book. At this time, Freshpet's Price To Sales Ratio is comparatively stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Freshpet by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Freshpet'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 Freshpet'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 Freshpet'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 Freshpet and how it compares across the competition.
About Freshpet Valuation
The stock valuation mechanism determines the current worth of Freshpet on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Freshpet. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Freshpet based exclusively on its fundamental and basic technical indicators. By analyzing Freshpet'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 Freshpet'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 Freshpet. We calculate exposure to Freshpet's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Freshpet's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 235 M | 246.8 M | |
| Pretax Profit Margin | (0.04) | (0.04) | |
| Operating Profit Margin | (0.04) | (0.04) | |
| Net Loss | (0.04) | (0.05) | |
| Gross Profit Margin | 0.31 | 0.47 |
8 Steps to conduct Freshpet's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Freshpet'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 Freshpet's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Freshpet's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Freshpet's revenue streams: Identify Freshpet's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Freshpet's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Freshpet's growth potential: Evaluate Freshpet's management, business model, and growth potential.
- Determine Freshpet'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 Freshpet's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Freshpet 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 Freshpet 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 | 48.2 M | |
| Quarterly Earnings Growth Y O Y | 0.093 | |
| Forward Price Earnings | 104.1667 |
Freshpet Current Valuation Indicators
Valuation refers to the process of determining the present value of Freshpet and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Freshpet we look at many different elements of the entity such as Freshpet's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Freshpet'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 Freshpet'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 Freshpet, 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 Freshpet'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 Freshpet's worth.When determining whether Freshpet 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 Freshpet 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 Freshpet Stock. Highlighted below are key reports to facilitate an investment decision about Freshpet Stock: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Freshpet. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in american community survey. For more information on how to buy Freshpet Stock please use our How to Invest in Freshpet guide.You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Complementary Tools for Freshpet Stock analysis
When running Freshpet's price analysis, check to measure Freshpet'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 Freshpet is operating at the current time. Most of Freshpet's value examination focuses on studying past and present price action to predict the probability of Freshpet's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Freshpet's price. Additionally, you may evaluate how the addition of Freshpet to your portfolios can decrease your overall portfolio volatility.
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Is Freshpet'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 Freshpet. If investors know Freshpet 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 Freshpet 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 0.093 | Earnings Share (0.70) | Revenue Per Share 15.923 | Quarterly Revenue Growth 0.299 | Return On Assets (0.01) |
The market value of Freshpet is measured differently than its book value, which is the value of Freshpet that is recorded on the company's balance sheet. Investors also form their own opinion of Freshpet's value that differs from its market value or its book value, called intrinsic value, which is Freshpet'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 Freshpet's market value can be influenced by many factors that don't directly affect Freshpet'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 Freshpet's value and its price as these two are different measures arrived at by different means. Investors typically determine if Freshpet is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Freshpet'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.