Robinhood Stock Valuation

HOOD
 Stock
  

USD 8.18  0.04  0.49%   

What is the value of Robinhood Markets today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Robinhood Markets, is its stock price multiplied by the total number of shares outstanding, calculating Robinhood Markets' enterprise value requires a different approach. It uses Robinhood Markets' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
As of July 2, 2022, Free Cash Flow is expected to decline to about (993.9 M). In addition to that, Enterprise Value is expected to decline to about 4.1 B.
Robinhood Markets holds a recent Real Value of $16.48 per share. The prevailing price of the company is $8.18. At this time, the company appears to be undervalued. Our model determines the value of Robinhood Markets from analyzing the company fundamentals such as Operating Margin of (131.27) %, shares outstanding of 835.68 M, and Return On Equity of (67.30) % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support purchasing undervalued entities and exiting overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
  
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Robinhood Markets Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Robinhood Markets's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Robinhood Most Recent Valuation Data

Price Book
1.12
Price Sales
4.29
EBITDA
138.1 M
Fiscal Year End
December
Industry
Software-Infrastructure
Enterprise Value
4.1 B
Gic Sub Industry
Financial Exchanges & Data
Undervalued
Today 8.18
Please note that Robinhood Markets' price fluctuation is somewhat reliable at this time. Calculation of the real value of Robinhood Markets is based on 3 months time horizon. Increasing Robinhood Markets' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Robinhood Markets is useful when determining the fair value of the Robinhood stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Robinhood Markets. Since Robinhood Markets is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Robinhood Stock. However, Robinhood Markets' 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.
16.48
Real Value
22.34
Upside
Estimating the potential upside or downside of Robinhood Markets helps investors to forecast how Robinhood 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 Robinhood Markets more accurately as focusing exclusively on Robinhood Markets' fundamentals will not take into account other important factors:
Earnings
Estimates (2)
LowProjected EPSHigh
-2.05-0.261.53
Details
Hype
Prediction
LowEstimated ValueHigh
2.428.2814.14
Details
Naive
Forecast
LowNext ValueHigh
3.749.6115.47
Details
11 Analysts
Consensus
LowTarget PriceHigh
15.0042.1068.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Robinhood Markets' intrinsic value based on its ongoing forecasts of Robinhood Markets' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Robinhood Markets' closest peers. When choosing an evaluation method for Robinhood Markets, 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.

Robinhood Valuation Drivers Correlation

Many accounts on the financial statements of Robinhood Markets are highly interrelated and sometimes correlated. Consequently, when conducting Robinhood's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Robinhood
Click cells to compare fundamentals

Robinhood Valuation Trend

Knowing Robinhood Markets' actual value is paramount for traders to make sound investment determinations. Robinhood Markets' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Robinhood Markets' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Robinhood Markets' 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.

Robinhood Market Cap

Robinhood Markets is rated below average in market capitalization category among related companies. Market capitalization of Software—Infrastructure industry is currently estimated at about 46.62 Billion. Robinhood Markets retains roughly 6.87 Billion in market capitalization claiming about 15% of equities listed under Software—Infrastructure industry.
Capitalization  Revenue  Valuation  Workforce  Total debt

Robinhood Markets Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Robinhood Markets's current stock value. Our valuation model uses many indicators to compare Robinhood Markets value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Robinhood Markets competition to find correlations between indicators driving Robinhood Markets's intrinsic value. More Info.
Robinhood Markets is rated below average in price to sales category among related companies. It is rated below average in price to book category among related companies fabricating about  0.22  of Price to Book per Price to Sales. The ratio of Price to Sales to Price to Book for Robinhood Markets is roughly  4.54 . As of July 2, 2022, Price to Book Value is expected to decline to 1.87. Comparative valuation analysis is a catch-all model that can be used if you cannot value Robinhood Markets by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Robinhood Markets' 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 Robinhood Markets' 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 Robinhood Markets' 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 Robinhood Markets and how it compares across the competition.

About Robinhood Markets Valuation

The equity valuation mechanism determines the current worth of Robinhood Markets on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Robinhood Markets. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Robinhood Markets based exclusively on its fundamental and basic technical indicators. By analyzing Robinhood Markets'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 Robinhood Markets'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 Robinhood Markets. We calculate exposure to Robinhood Markets's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Robinhood Markets's related companies.
Last ReportedProjected for 2022
Gross Profit1.7 B1.4 B
Profit Margin(2.03) (2.08) 
Robinhood Markets, Inc. operates financial services platform in the United States. Robinhood Markets, Inc. was incorporated in 2013 and is headquartered in Menlo Park, California. Robinhood Markets operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 3800 people.

Robinhood Markets Quarterly Enterprise Value

1.46 Billion

Share

Robinhood Markets Valuation Growth Rates

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 Robinhood Markets 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.
Quick Ratio1.38
Revenue Growth-42.70%
Enterprise Value To Revenue0.10

Robinhood Markets Current Valuation Indicators

Valuation refers to the process of determining the present value of Robinhood Markets and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Robinhood we look at many different elements of the entity such as Robinhood's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Robinhood Markets' 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 Robinhood Markets' 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 Robinhood Markets, 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 Robinhood Markets' 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 Robinhood Markets' worth.
Please check Risk vs Return Analysis. Note that the Robinhood Markets information on this page should be used as a complementary analysis to other Robinhood Markets' 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

Complementary Tools for Robinhood Stock analysis

When running Robinhood Markets price analysis, check to measure Robinhood Markets' 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 Robinhood Markets is operating at the current time. Most of Robinhood Markets' value examination focuses on studying past and present price action to predict the probability of Robinhood Markets' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Robinhood Markets' price. Additionally, you may evaluate how the addition of Robinhood Markets to your portfolios can decrease your overall portfolio volatility.
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Is Robinhood Markets' 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 Robinhood Markets. If investors know Robinhood 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 Robinhood Markets listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
6.8 B
Quarterly Revenue Growth YOY
-0.43
Return On Assets
-0.15
Return On Equity
-0.67
The market value of Robinhood Markets is measured differently than its book value, which is the value of Robinhood that is recorded on the company's balance sheet. Investors also form their own opinion of Robinhood Markets' value that differs from its market value or its book value, called intrinsic value, which is Robinhood Markets' 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 Robinhood Markets' market value can be influenced by many factors that don't directly affect Robinhood Markets' 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 Robinhood Markets' value and its price as these two are different measures arrived at by different means. Investors typically determine Robinhood Markets value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Robinhood Markets' 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.