Beneficient Class A Stock (USA: BENF) presents an intriguing investment opportunity from a valuation perspective. Despite a net income loss of
$252.1M and a high probability of bankruptcy at 89.92%, the company's current valuation stands at
$563.37M, significantly lower than its total assets of
$2.91B. This discrepancy suggests that the stock may be undervalued, offering potential for substantial growth if the company can improve its financial performance.
Major Takeaways
The company currently has 52.13 million in liabilities. Beneficient's Class A stock, priced at $4.56 per share, is considered overvalued given its modest future projections.
We determine the current worth of Beneficient Class A using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Beneficient Class based exclusively on its
fundamental and basic
technical indicators. By analyzing Beneficient's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Beneficient'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 Beneficient. We calculate exposure to Beneficient's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Beneficient's related companies.
Beneficient Class Investment Alerts
Beneficient investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Beneficient Class A performance across your portfolios.Please check all
investment alerts for Beneficient
Beneficient Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Beneficient value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Beneficient competition to find
correlations between indicators driving the intrinsic value of Beneficient.
Beneficient Gross Profit
Beneficient Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Beneficient previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Beneficient Gross Profit growth over the last 10 years. Please check Beneficient's
gross profit and other
fundamental indicators for more details.
Breaking it down a bit more
Net Loss for the year was (252.1
M) with profit before overhead, payroll, taxes, and interest of 0.
| 2021 | 2022 | 2023 | 2024 (projected) |
Depreciation And Amortization | 2.0M | 3.6M | 4.1M | 2.4M | Interest Income | 7.4M | 412K | 460K | 437K |
Margins Breakdown
Beneficient profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Beneficient itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Beneficient profit margins.
| Pretax Profit Margin | (0.44) |
| Operating Profit Margin | (0.44) |
| Net Profit Margin | (0.6) |
| Gross Profit Margin | 0.59 |
Beneficient Change In Cash is nearly stable at the moment. Also, Beneficient Investments is nearly stable at the moment.
As Warren Buffet once wisely noted, price is what you pay, value is what you get. Beneficient Class A Stock (USA: BENF) is a prime example of this wisdom. Despite a challenging financial landscape, with a net income loss of $252.1M and a high probability of bankruptcy at 89.92%, the company's potential upside of 22.45 and a market capitalization of $17.56M suggest there may be hidden value. The company's shares are largely held by insiders at 64.40%, indicating a strong belief in the company's future from those closest to its operations. However, investors should be aware of the high downside variance of 120.08 and carefully consider the risk-reward balance..
Beneficient showing occurrence of lower volatility
Beneficient Class A stock is currently showing signs of decreased volatility, as evidenced by its rising Treynor Ratio of 0.04. This ratio, a gauge of risk-adjusted performance, suggests the stock is becoming less risky compared to the market. However, investors should remain vigilant as the price may face another downturn. Despite the reduced volatility, the potential for price decline indicates a complex risk-return tradeoff that requires careful monitoring. The stock has shown significant volatility of returns over the selected time period. Understanding market volatility trends can help investors time the market.
Proper use of volatility indicators can measure Beneficient's stock risk against market volatility during both bullish and bearish trends. High volatility in bear markets can directly impact Beneficient's stock price, causing investor stress as share values drop, often prompting portfolio rebalancing.In conclusion, Beneficient (USA Stocks:BENF) presents an intriguing growth case for investors. With a
Valuation Market Value of 4.77, it offers an opportunity to buy into a company that is valued lower than its hype value of
7.22. This indicates a potential for solid price appreciation. Moreover, given that the fiscal year end is in December, investors may want to keep a close watch on the company's year-end performance to get a sense of its growth trajectory. This is especially pertinent as its Valuation Real Value stands at 4.56, indicating that it's priced reasonably against its intrinsic value. Therefore, Beneficient may indeed be a worthy addition to growth-oriented investment portfolios..
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Beneficient Class A. Please refer to our
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