Farmer Bros Valuation

FARM Stock  USD 3.50  0.05  1.45%   
At this time, the firm appears to be undervalued. Farmer Bros shows a prevailing Real Value of $4.44 per share. The current price of the firm is $3.5. Our model computes the value of Farmer Bros from reviewing the firm fundamentals such as Shares Outstanding of 21.07 M, profit margin of (0.17) %, and Current Valuation of 120.04 M as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise obtaining undervalued instruments and abandoning overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
Price Book
1.7001
Enterprise Value
120 M
Enterprise Value Ebitda
36.9132
Price Sales
0.2122
Enterprise Value Revenue
0.3504
Undervalued
Today
3.50
Please note that Farmer Bros' price fluctuation is unstable at this time. Calculation of the real value of Farmer Bros is based on 3 months time horizon. Increasing Farmer Bros' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Farmer Bros Co is useful when determining the fair value of the Farmer stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Farmer Bros. Since Farmer Bros is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Farmer Stock. However, Farmer Bros' 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  3.5 Real  4.44 Target  6.0 Hype  3.58 Naive  3.54
The real value of Farmer Stock, also known as its intrinsic value, is the underlying worth of Farmer Bros Company, which is reflected in its stock price. It is based on Farmer Bros' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Farmer Bros' 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 Farmer Bros' 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.
4.44
Real Value
9.26
Upside
Estimating the potential upside or downside of Farmer Bros Co helps investors to forecast how Farmer 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 Farmer Bros more accurately as focusing exclusively on Farmer Bros' fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
-0.16-0.16-0.16
Details
Hype
Prediction
LowEstimatedHigh
0.183.588.40
Details
Naive
Forecast
LowNext ValueHigh
0.073.548.36
Details
1 Analysts
Consensus
LowTarget PriceHigh
5.466.006.66
Details

Farmer Bros Investments

106.8 Million

Farmer Bros Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Farmer Bros's current stock value. Our valuation model uses many indicators to compare Farmer Bros value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Farmer Bros competition to find correlations between indicators driving Farmer Bros's intrinsic value. More Info.
Farmer Bros Co is one of the top stocks in beta category among related companies. It is rated # 5 in net asset category among related companies making up about  106,936,788  of Net Asset per Beta. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Farmer Bros by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Farmer Bros' 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 Farmer Bros' 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 Farmer Bros' 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 Farmer Bros and how it compares across the competition.

About Farmer Bros Valuation

The stock valuation mechanism determines the current worth of Farmer Bros Co on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Farmer Bros Co. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Farmer Bros based exclusively on its fundamental and basic technical indicators. By analyzing Farmer Bros'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 Farmer Bros'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 Farmer Bros. We calculate exposure to Farmer Bros's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Farmer Bros's related companies.
Last ReportedProjected for 2024
Gross Profit131.8 M151.1 M
Pretax Profit Margin(0.12)(0.11)
Operating Profit Margin(0.07)(0.07)
Net Loss(0.27)(0.25)
Gross Profit Margin 0.39  0.52 

8 Steps to conduct Farmer Bros' Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Farmer Bros' 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 Farmer Bros' valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Farmer Bros' financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Farmer Bros' revenue streams: Identify Farmer Bros' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Farmer Bros' industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Farmer Bros' growth potential: Evaluate Farmer Bros' management, business model, and growth potential.
  • Determine Farmer Bros' 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 Farmer Bros' estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

Farmer Bros 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 Farmer Bros 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 Outstanding19.6 M

Farmer Bros Current Valuation Indicators

Valuation refers to the process of determining the present value of Farmer Bros Co and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Farmer we look at many different elements of the entity such as Farmer's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Farmer Bros' 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 Farmer Bros' 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 Farmer Bros, 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 Farmer Bros' 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 Farmer Bros' worth.
When determining whether Farmer Bros is a strong investment it is important to analyze Farmer Bros' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Farmer Bros' future performance. For an informed investment choice regarding Farmer Stock, refer to the following important reports:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Farmer Bros Co. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area.
You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

Complementary Tools for Farmer Stock analysis

When running Farmer Bros' price analysis, check to measure Farmer Bros' 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 Farmer Bros is operating at the current time. Most of Farmer Bros' value examination focuses on studying past and present price action to predict the probability of Farmer Bros' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Farmer Bros' price. Additionally, you may evaluate how the addition of Farmer Bros to your portfolios can decrease your overall portfolio volatility.
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Is Farmer Bros' 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 Farmer Bros. If investors know Farmer 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 Farmer Bros listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(1.14)
Revenue Per Share
16.889
Quarterly Revenue Growth
0.006
Return On Assets
(0.06)
Return On Equity
(0.35)
The market value of Farmer Bros is measured differently than its book value, which is the value of Farmer that is recorded on the company's balance sheet. Investors also form their own opinion of Farmer Bros' value that differs from its market value or its book value, called intrinsic value, which is Farmer Bros' 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 Farmer Bros' market value can be influenced by many factors that don't directly affect Farmer Bros' 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 Farmer Bros' value and its price as these two are different measures arrived at by different means. Investors typically determine if Farmer Bros is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Farmer Bros' 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.