FAT Brands Valuation
| FAT Stock | USD 7.05 0.05 0.70% |
At this time, the entity appears to be undervalued. FAT Brands shows a prevailing Real Value of $10.45 per share. The current price of the entity is $7.05. Our model computes the value of FAT Brands from examining the entity fundamentals such as Return On Asset of 0.0031, current valuation of 1.6 B, and Profit Margin of (0.19) % as well as evaluating its technical indicators and probability of bankruptcy. In general, most investors advise acquiring undervalued instruments and selling overvalued instruments since, in the future, asset prices and their ongoing real values will submerge. Key fundamental drivers impacting FAT Brands' valuation include:
Price Book 12.8123 | Enterprise Value 1.6 B | Enterprise Value Ebitda 28.0045 | Price Sales 0.2491 | Enterprise Value Revenue 3.0482 |
Undervalued
Today
Please note that FAT Brands' price fluctuation is somewhat reliable at this time. Calculation of the real value of FAT Brands is based on 3 months time horizon. Increasing FAT Brands' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for FAT Brands is useful when determining the fair value of the FAT stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of FAT Brands. Since FAT Brands is currently traded on the exchange, buyers and sellers on that exchange determine the market value of FAT Stock. However, FAT Brands' 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 7.05 | Real 10.45 | Target 20.0 | Hype 7.1 |
The real value of FAT Stock, also known as its intrinsic value, is the underlying worth of FAT Brands Company, which is reflected in its stock price. It is based on FAT Brands' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of FAT Brands' 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 FAT Brands' 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 FAT Brands helps investors to forecast how FAT 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 FAT Brands more accurately as focusing exclusively on FAT Brands' 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 FAT Brands' intrinsic value based on its ongoing forecasts of FAT Brands' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against FAT Brands' closest peers. When choosing an evaluation method for FAT Brands, 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.
FAT Brands Investments |
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FAT Valuation Trend
Knowing FAT Brands' actual value is paramount for traders to make sound investment determinations. FAT Brands' real value is not only important for the investor to make better decisions but also for a more accurate overall view of FAT Brands' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both FAT Brands' 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.
FAT Market Cap
FAT Brands is rated # 3 in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is currently estimated at about 17.74 Billion. FAT Brands maintains roughly 119.21 Million in market capitalization contributing less than 1% to stocks in Consumer Discretionary industry.FAT Brands Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining FAT Brands's current stock value. Our valuation model uses many indicators to compare FAT Brands value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across FAT Brands competition to find correlations between indicators driving FAT Brands's intrinsic value. More Info.FAT Brands is rated # 2 in price to earning category among related companies. It is one of the top stocks in price to book category among related companies fabricating about 0.79 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for FAT Brands is roughly 1.27 . Price To Book Ratio is likely to gain to -0.43 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value FAT Brands by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for FAT Brands' 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 FAT Brands' 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 FAT Brands' 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 FAT Brands and how it compares across the competition.
About FAT Brands Valuation
The stock valuation mechanism determines the current worth of FAT Brands on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of FAT Brands. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of FAT Brands based exclusively on its fundamental and basic technical indicators. By analyzing FAT Brands'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 FAT Brands'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 FAT Brands. We calculate exposure to FAT Brands's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to FAT Brands's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 166.4 M | 174.8 M | |
| Pretax Profit Margin | (0.23) | (0.22) | |
| Operating Profit Margin | 0.06 | 0.06 | |
| Net Loss | (0.22) | (0.23) | |
| Gross Profit Margin | 0.40 | 0.66 |
8 Steps to conduct FAT Brands' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates FAT Brands' 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 FAT Brands' valuation analysis, follow these 8 steps:- Gather financial information: Obtain FAT Brands' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine FAT Brands' revenue streams: Identify FAT Brands' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research FAT Brands' industry and market trends, including the size of the market, growth rate, and competition.
- Establish FAT Brands' growth potential: Evaluate FAT Brands' management, business model, and growth potential.
- Determine FAT Brands' 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 FAT Brands' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of FAT Brands represents a small ownership stake in the entity. As a stockholder of FAT, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
FAT Brands Dividends Analysis For Valuation
Dividend Paid And Capex Coverage Ratio is likely to gain to 6.53 in 2024, despite the fact that Dividends Paid is likely to grow to (15.5 M). . Retained Earnings is likely to gain to about (255.3 M) in 2024. Retained Earnings Total Equity is likely to gain to about (152.8 M) in 2024
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -16.3 M | -15.5 M | |
| Dividend Yield | 0.16 | 0.15 | |
| Dividend Payout Ratio | (0.21) | (0.20) | |
| Dividend Paid And Capex Coverage Ratio | 6.22 | 6.53 |
There are various types of dividends FAT Brands can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of FAT shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from FAT Brands directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When FAT pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of FAT Brands by the value of the dividends paid out.
FAT Brands 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 FAT Brands 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 | 16.6 M | |
| Quarterly Earnings Growth Y O Y | 112.056 |
FAT Brands Current Valuation Indicators
Valuation refers to the process of determining the present value of FAT Brands and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value FAT we look at many different elements of the entity such as FAT's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. FAT Brands' 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 FAT Brands' 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 FAT Brands, 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 FAT Brands' 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 FAT Brands' worth.When determining whether FAT Brands is a strong investment it is important to analyze FAT Brands' 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 FAT Brands' future performance. For an informed investment choice regarding FAT Stock, refer to the following important reports: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in FAT Brands. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. For more information on how to buy FAT Stock please use our How to Invest in FAT Brands guide.Note that the FAT Brands information on this page should be used as a complementary analysis to other FAT Brands' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Complementary Tools for FAT Stock analysis
When running FAT Brands' price analysis, check to measure FAT Brands' 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 FAT Brands is operating at the current time. Most of FAT Brands' value examination focuses on studying past and present price action to predict the probability of FAT Brands' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move FAT Brands' price. Additionally, you may evaluate how the addition of FAT Brands to your portfolios can decrease your overall portfolio volatility.
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Is FAT Brands' 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 FAT Brands. If investors know FAT 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 FAT Brands 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 112.056 | Dividend Share 0.56 | Earnings Share (5.85) | Revenue Per Share 28.945 | Quarterly Revenue Growth 0.528 |
The market value of FAT Brands is measured differently than its book value, which is the value of FAT that is recorded on the company's balance sheet. Investors also form their own opinion of FAT Brands' value that differs from its market value or its book value, called intrinsic value, which is FAT Brands' 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 FAT Brands' market value can be influenced by many factors that don't directly affect FAT Brands' 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 FAT Brands' value and its price as these two are different measures arrived at by different means. Investors typically determine if FAT Brands is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, FAT Brands' 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.