Cara Therapeutic Valuation
| CARA Stock | USD 0.69 0.04 5.48% |
Cara Therapeutic is undervalued. Cara Therapeutic shows a prevailing Real Value of $4.1 per share. The current price of the firm is $0.69. Our model approximates the value of Cara Therapeutic from analyzing the firm fundamentals such as Shares Outstanding of 54.66 M, operating margin of (10.85) %, and Return On Equity of -1.1 as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor taking in undervalued instruments and trading overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Undervalued
Today
Please note that Cara Therapeutic's price fluctuation is very risky at this time. Calculation of the real value of Cara Therapeutic is based on 3 months time horizon. Increasing Cara Therapeutic's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Cara Therapeutic is useful when determining the fair value of the Cara stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Cara Therapeutic. Since Cara Therapeutic is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Cara Stock. However, Cara Therapeutic'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 0.69 | Real 4.1 | Hype 0.76 |
The real value of Cara Stock, also known as its intrinsic value, is the underlying worth of Cara Therapeutic Company, which is reflected in its stock price. It is based on Cara Therapeutic's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Cara Therapeutic'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 Cara Therapeutic'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 Cara Therapeutic helps investors to forecast how Cara 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 Cara Therapeutic more accurately as focusing exclusively on Cara Therapeutic's fundamentals will not take into account other important factors: Cara Therapeutic Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Cara Therapeutic's current stock value. Our valuation model uses many indicators to compare Cara Therapeutic value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Cara Therapeutic competition to find correlations between indicators driving Cara Therapeutic's intrinsic value. More Info.Cara Therapeutic is number one stock in price to earning category among related companies. It is number one stock in price to book category among related companies fabricating about 0.01 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Cara Therapeutic is roughly 85.48 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Cara Therapeutic by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Cara Therapeutic'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 Cara Therapeutic'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 Cara Therapeutic'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 Cara Therapeutic and how it compares across the competition.
About Cara Therapeutic Valuation
The stock valuation mechanism determines the current worth of Cara Therapeutic on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Cara Therapeutic. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Cara Therapeutic based exclusively on its fundamental and basic technical indicators. By analyzing Cara Therapeutic'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 Cara Therapeutic'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 Cara Therapeutic. We calculate exposure to Cara Therapeutic's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Cara Therapeutic's related companies.Cara Therapeutics, Inc., an early commercial-stage biopharmaceutical company, focuses on developing and commercializing chemical entities with a primary focus on pruritus and pain by selectively targeting kappa opioid receptors in the United States. Cara Therapeutics, Inc. was incorporated in 2004 and is based in Stamford, Connecticut. Cara Therapeutics operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 84 people.
8 Steps to conduct Cara Therapeutic's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Cara Therapeutic'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 Cara Therapeutic's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Cara Therapeutic's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Cara Therapeutic's revenue streams: Identify Cara Therapeutic's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Cara Therapeutic's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Cara Therapeutic's growth potential: Evaluate Cara Therapeutic's management, business model, and growth potential.
- Determine Cara Therapeutic'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 Cara Therapeutic's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Cara Therapeutic 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 Cara Therapeutic 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 | 54.1 M |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cara Therapeutic. 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. For information on how to trade Cara Stock refer to our How to Trade Cara Stock guide.You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Complementary Tools for Cara Stock analysis
When running Cara Therapeutic's price analysis, check to measure Cara Therapeutic'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 Cara Therapeutic is operating at the current time. Most of Cara Therapeutic's value examination focuses on studying past and present price action to predict the probability of Cara Therapeutic's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cara Therapeutic's price. Additionally, you may evaluate how the addition of Cara Therapeutic to your portfolios can decrease your overall portfolio volatility.
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |
Is Cara Therapeutic'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 Cara Therapeutic. If investors know Cara 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 Cara Therapeutic listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Cara Therapeutic is measured differently than its book value, which is the value of Cara that is recorded on the company's balance sheet. Investors also form their own opinion of Cara Therapeutic's value that differs from its market value or its book value, called intrinsic value, which is Cara Therapeutic'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 Cara Therapeutic's market value can be influenced by many factors that don't directly affect Cara Therapeutic'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 Cara Therapeutic's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cara Therapeutic is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cara Therapeutic'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.