Ulta Beauty Valuation
| ULTA Stock | USD 413.50 11.61 2.73% |
At this time, the company appears to be undervalued. Ulta Beauty has a current Real Value of $494.6 per share. The regular price of the company is $413.5. Our model measures the value of Ulta Beauty from inspecting the company fundamentals such as Operating Margin of 0.15 %, shares outstanding of 48.27 M, and Return On Equity of 0.61 as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend taking in undervalued stocks and trading overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other. Key fundamental drivers impacting Ulta Beauty's valuation include:
Price Book 9.3669 | Enterprise Value 21.7 B | Enterprise Value Ebitda 11.653 | Price Sales 1.905 | Forward PE 16.3132 |
Undervalued
Today
Please note that Ulta Beauty's price fluctuation is very steady at this time. Calculation of the real value of Ulta Beauty is based on 3 months time horizon. Increasing Ulta Beauty's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Ulta Beauty is useful when determining the fair value of the Ulta stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Ulta Beauty. Since Ulta Beauty is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Ulta Stock. However, Ulta Beauty'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 413.5 | Real 494.6 | Target 528.62 | Hype 425.82 |
The real value of Ulta Stock, also known as its intrinsic value, is the underlying worth of Ulta Beauty Company, which is reflected in its stock price. It is based on Ulta Beauty's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Ulta Beauty'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 Ulta Beauty'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 Ulta Beauty helps investors to forecast how Ulta 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 Ulta Beauty more accurately as focusing exclusively on Ulta Beauty'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 Ulta Beauty's intrinsic value based on its ongoing forecasts of Ulta Beauty's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Ulta Beauty's closest peers. When choosing an evaluation method for Ulta Beauty, 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.
Ulta Beauty Investments |
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Ulta Valuation Trend
Knowing Ulta Beauty's actual value is paramount for traders to make sound investment determinations. Ulta Beauty's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Ulta Beauty's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Ulta Beauty'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.
Ulta Market Cap
Ulta Beauty is rated third in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is at this time estimated at about 198.88 Billion. Ulta Beauty retains roughly 20.52 Billion in market capitalization claiming about 10% of stocks in Consumer Discretionary industry.Ulta Beauty Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Ulta Beauty's current stock value. Our valuation model uses many indicators to compare Ulta Beauty value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Ulta Beauty competition to find correlations between indicators driving Ulta Beauty's intrinsic value. More Info.Ulta Beauty is rated fifth in price to earning category among related companies. It is rated third in price to book category among related companies fabricating about 0.45 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Ulta Beauty is roughly 2.20 . As of April 19, 2024, Price To Book Ratio is expected to decline to 6.80. Comparative valuation analysis is a catch-all model that can be used if you cannot value Ulta Beauty by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Ulta Beauty'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 Ulta Beauty'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 Ulta Beauty'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 Ulta Beauty and how it compares across the competition.
About Ulta Beauty Valuation
The stock valuation mechanism determines the current worth of Ulta Beauty on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Ulta Beauty. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Ulta Beauty based exclusively on its fundamental and basic technical indicators. By analyzing Ulta Beauty'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 Ulta Beauty'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 Ulta Beauty. We calculate exposure to Ulta Beauty's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Ulta Beauty's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 4.4 B | 4.6 B | |
| Pretax Profit Margin | 0.15 | 0.13 | |
| Operating Profit Margin | 0.15 | 0.13 | |
| Net Profit Margin | 0.12 | 0.08 | |
| Gross Profit Margin | 0.39 | 0.35 |
8 Steps to conduct Ulta Beauty's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Ulta Beauty'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 Ulta Beauty's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Ulta Beauty's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Ulta Beauty's revenue streams: Identify Ulta Beauty's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Ulta Beauty's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Ulta Beauty's growth potential: Evaluate Ulta Beauty's management, business model, and growth potential.
- Determine Ulta Beauty'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 Ulta Beauty's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Ulta Beauty 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 Ulta Beauty 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 | 49.6 M | |
| Quarterly Earnings Growth Y O Y | 0.209 | |
| Forward Price Earnings | 16.3132 |
Ulta Beauty Current Valuation Indicators
Valuation refers to the process of determining the present value of Ulta Beauty and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Ulta we look at many different elements of the entity such as Ulta's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Ulta Beauty'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 Ulta Beauty'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 Ulta Beauty, 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 Ulta Beauty'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 Ulta Beauty's worth.When determining whether Ulta Beauty offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ulta Beauty'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 Ulta Beauty Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ulta Beauty Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Ulta Beauty. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate. For information on how to trade Ulta Stock refer to our How to Trade Ulta Stock guide.You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
Complementary Tools for Ulta Stock analysis
When running Ulta Beauty's price analysis, check to measure Ulta Beauty'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 Ulta Beauty is operating at the current time. Most of Ulta Beauty's value examination focuses on studying past and present price action to predict the probability of Ulta Beauty's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ulta Beauty's price. Additionally, you may evaluate how the addition of Ulta Beauty to your portfolios can decrease your overall portfolio volatility.
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Is Ulta Beauty'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 Ulta Beauty. If investors know Ulta 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 Ulta Beauty 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 0.209 | Earnings Share 26.02 | Revenue Per Share 227.31 | Quarterly Revenue Growth 0.102 | Return On Assets 0.1894 |
The market value of Ulta Beauty is measured differently than its book value, which is the value of Ulta that is recorded on the company's balance sheet. Investors also form their own opinion of Ulta Beauty's value that differs from its market value or its book value, called intrinsic value, which is Ulta Beauty'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 Ulta Beauty's market value can be influenced by many factors that don't directly affect Ulta Beauty'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 Ulta Beauty's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ulta Beauty is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ulta Beauty'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.