Zalando SE Valuation

ZAL Stock  EUR 26.51  1.10  4.33%   
At this time, the company appears to be overvalued. Zalando SE maintains a prevalent Real Value of €23.96 per share. The last-minute price of the company is €26.51. Our model calculates the value of Zalando SE from examining the company fundamentals such as Current Valuation of 8.91 B, profit margin of 0.0005 %, and Return On Asset of 0.0121 as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors encourage locking in undervalued securities and disposing overvalued securities since, at some point, asset prices and their ongoing real values will grow together.
Overvalued
Today
26.51
Please note that Zalando SE's price fluctuation is not too volatile at this time. Calculation of the real value of Zalando SE is based on 3 months time horizon. Increasing Zalando SE's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Zalando SE is useful when determining the fair value of the Zalando stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Zalando SE. Since Zalando SE is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Zalando Stock. However, Zalando SE'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  26.51 Real  23.96 Hype  26.51
The real value of Zalando Stock, also known as its intrinsic value, is the underlying worth of Zalando SE Company, which is reflected in its stock price. It is based on Zalando SE's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Zalando SE'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 Zalando SE'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.
23.96
Real Value
27.23
Upside
Estimating the potential upside or downside of Zalando SE helps investors to forecast how Zalando 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 Zalando SE more accurately as focusing exclusively on Zalando SE's fundamentals will not take into account other important factors:
Hype
Prediction
LowEstimatedHigh
23.2426.5129.78
Details

Zalando SE Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Zalando SE's current stock value. Our valuation model uses many indicators to compare Zalando SE value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Zalando SE competition to find correlations between indicators driving Zalando SE's intrinsic value. More Info.
Zalando SE is rated second in price to sales category among related companies. It is rated first in beta category among related companies totaling about  1.97  of Beta per Price To Sales. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Zalando SE by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Zalando SE'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 Zalando SE'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 Zalando SE'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 Zalando SE and how it compares across the competition.

About Zalando SE Valuation

The stock valuation mechanism determines the current worth of Zalando SE on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Zalando SE. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Zalando SE based exclusively on its fundamental and basic technical indicators. By analyzing Zalando SE'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 Zalando SE'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 Zalando SE. We calculate exposure to Zalando SE's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Zalando SE's related companies.
Zalando SE operates as an online fashion and lifestyle retailer. Zalando SE was founded in 2008 and is headquartered in Berlin, Germany. ZALANDO SE operates under Internet Retail classification in Germany and is traded on Frankfurt Stock Exchange. It employs 15822 people.

8 Steps to conduct Zalando SE's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Zalando SE'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 Zalando SE's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Zalando SE's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Zalando SE's revenue streams: Identify Zalando SE's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Zalando SE's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Zalando SE's growth potential: Evaluate Zalando SE's management, business model, and growth potential.
  • Determine Zalando SE'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 Zalando SE's 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.
Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Zalando SE. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors.
You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.

Complementary Tools for Zalando Stock analysis

When running Zalando SE's price analysis, check to measure Zalando SE'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 Zalando SE is operating at the current time. Most of Zalando SE's value examination focuses on studying past and present price action to predict the probability of Zalando SE's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Zalando SE's price. Additionally, you may evaluate how the addition of Zalando SE to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Zalando SE's value and its price as these two are different measures arrived at by different means. Investors typically determine if Zalando SE is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Zalando SE'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.