Cazoo Valuation
| CZOO Stock | USD 0.02 0.06 75.00% |
Cazoo seems to be undervalued based on Macroaxis valuation methodology. Our model approximates the value of Cazoo Group from analyzing the firm fundamentals such as Return On Equity of -2.1, current valuation of 343.66 M, and Profit Margin of (0.57) % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Cazoo's valuation include:
Price Book 0.123 | Enterprise Value 343.7 M | Enterprise Value Ebitda (3.17) | Price Sales 0.0439 | Enterprise Value Revenue 0.4392 |
Undervalued
Today
Please note that Cazoo's price fluctuation is out of control at this time. Calculation of the real value of Cazoo Group is based on 3 months time horizon. Increasing Cazoo's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Cazoo is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Cazoo Stock. However, Cazoo'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 0.02 | Real 0.52 | Target 2.03 | Hype 0.0211 | Naive 2.18 |
The intrinsic value of Cazoo'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 Cazoo'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 Cazoo Group helps investors to forecast how Cazoo 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 Cazoo more accurately as focusing exclusively on Cazoo'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 Cazoo's intrinsic value based on its ongoing forecasts of Cazoo's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Cazoo's closest peers.
Cazoo Investments |
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Cazoo Valuation Trend
Knowing Cazoo's actual value is paramount for traders to make sound investment determinations. Cazoo's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Cazoo's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Cazoo'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.
Cazoo Market Cap
Cazoo Group is rated below average in market capitalization category among its peers. Market capitalization of Consumer Discretionary industry is currently estimated at about 34.93 Billion. Cazoo adds roughly 29.54 Million in market capitalization claiming only tiny portion of stocks in Consumer Discretionary industry.Cazoo Total Value Analysis
Cazoo Group is currently estimated to have valuation of 343.66 M with market capitalization of 29.54 M, debt of 649 M, and cash on hands of 401.2 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 Cazoo fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
| 343.66 M | 29.54 M | 649 M | 401.2 M |
Cazoo Investor Information
About 78.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 0.12. Some equities with similar Price to Book (P/B) outperform the market in the long run. Cazoo Group recorded a loss per share of 1555.09. The entity had not issued any dividends in recent years. The firm had 1:100 split on the 6th of December 2023. Cazoo Group Ltd operates as an online car retailer in the United Kingdom and rest of Europe. The company was founded in 2018 and is headquartered in London, the United Kingdom. Cazoo is traded on New York Stock Exchange in the United States. For more info on Cazoo Group please contact the company at 44 20 3901 3488 or go to https://www.cazoo.co.uk.Cazoo Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cazoo has an asset utilization ratio of 144.39 percent. This suggests that the Company is making $1.44 for each dollar of assets. An increasing asset utilization means that Cazoo Group is more efficient with each dollar of assets it utilizes for everyday operations.Cazoo Ownership Allocation
The majority of Cazoo Group outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Cazoo Group to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Cazoo. Please pay attention to any change in the institutional holdings of Cazoo Group as this could imply that something significant has changed or is about to change at the company.Cazoo Profitability Analysis
The company reported the previous year's revenue of 1.25 B. Net Loss for the year was (704 M) with profit before overhead, payroll, taxes, and interest of 20.27 M.About Cazoo Valuation
The stock valuation mechanism determines the current worth of Cazoo Group on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Cazoo Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Cazoo Group based exclusively on its fundamental and basic technical indicators. By analyzing Cazoo'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 Cazoo'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 Cazoo. We calculate exposure to Cazoo's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Cazoo's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 24.1 M | 25.4 M | |
| Pretax Profit Margin | (0.38) | (0.40) | |
| Operating Profit Margin | (0.48) | (0.51) | |
| Net Loss | (0.37) | (0.39) | |
| Gross Profit Margin | 0.02 | 0.02 |
8 Steps to conduct Cazoo's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Cazoo'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 Cazoo's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Cazoo's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Cazoo's revenue streams: Identify Cazoo's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Cazoo's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Cazoo's growth potential: Evaluate Cazoo's management, business model, and growth potential.
- Determine Cazoo'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 Cazoo's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Cazoo 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.
| Common Stock Shares Outstanding | 38.1 M |
Cazoo Current Valuation Indicators
Valuation refers to the process of determining the present value of Cazoo Group and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Cazoo we look at many different elements of the entity such as Cazoo's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Cazoo'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 Cazoo'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 Cazoo, 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 Cazoo'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 Cazoo's worth.Additional Information and Resources on Investing in Cazoo Stock
When determining whether Cazoo Group offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Cazoo's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Cazoo Group Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cazoo Group Stock:Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cazoo Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Automotive Retail space 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 Cazoo. If investors know Cazoo 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 Cazoo listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share -1.6 K | Revenue Per Share 2.8 K | Quarterly Revenue Growth (0.28) | Return On Assets (0.16) | Return On Equity (2.10) |
The market value of Cazoo Group is measured differently than its book value, which is the value of Cazoo that is recorded on the company's balance sheet. Investors also form their own opinion of Cazoo's value that differs from its market value or its book value, called intrinsic value, which is Cazoo'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 Cazoo's market value can be influenced by many factors that don't directly affect Cazoo'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 Cazoo's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cazoo is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cazoo'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.