Open Lending Valuation
| LPRO Stock | USD 4.96 0.09 1.85% |
At this time, the company appears to be overvalued. Open Lending Corp holds a recent Real Value of $4.51 per share. The prevailing price of the company is $4.96. Our model determines the value of Open Lending Corp from analyzing the company fundamentals such as Operating Margin of (0.55) %, return on equity of 0.11, and Shares Outstanding of 119.15 M as well as examining its technical indicators and probability of bankruptcy. In general, most investors support obtaining undervalued entities and abandoning overvalued entities since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting Open Lending's valuation include:
Price Book 2.9501 | Enterprise Value 497.6 M | Enterprise Value Ebitda 12.6457 | Price Sales 5.1633 | Forward PE 31.8471 |
Overvalued
Today
Please note that Open Lending's price fluctuation is moderately volatile at this time. Calculation of the real value of Open Lending Corp is based on 3 months time horizon. Increasing Open Lending's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Open Lending Corp is useful when determining the fair value of the Open stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Open Lending. Since Open Lending is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Open Stock. However, Open Lending'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 4.96 | Real 4.51 | Target 11.1 | Hype 4.96 | Naive 4.81 |
The real value of Open Stock, also known as its intrinsic value, is the underlying worth of Open Lending Corp Company, which is reflected in its stock price. It is based on Open Lending's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Open Lending'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 Open Lending'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 Open Lending Corp helps investors to forecast how Open 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 Open Lending more accurately as focusing exclusively on Open Lending'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 Open Lending's intrinsic value based on its ongoing forecasts of Open Lending's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Open Lending's closest peers. When choosing an evaluation method for Open Lending Corp, 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.
Open Lending Investments |
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Open Valuation Trend
Knowing Open Lending's actual value is paramount for traders to make sound investment determinations. Open Lending's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Open Lending's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Open Lending'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.
Open Market Cap
Open Lending Corp is rated below average in market capitalization category among related companies. Market capitalization of Financials industry is now estimated at about 52.68 Billion. Open Lending claims roughly 590.99 Million in market capitalization contributing just under 2% to equities under Financials industry.Open Lending Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Open Lending's current stock value. Our valuation model uses many indicators to compare Open Lending value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Open Lending competition to find correlations between indicators driving Open Lending's intrinsic value. More Info.Open Lending Corp is rated below average in price to earning category among related companies. It is rated third overall 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 Open Lending Corp is roughly 2.24 . As of the 24th of April 2024, Price To Book Ratio is likely to drop to 4.75. Comparative valuation analysis is a catch-all model that can be used if you cannot value Open Lending by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Open Lending'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 Open Lending'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 Open Lending'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 Open Lending and how it compares across the competition.
About Open Lending Valuation
The stock valuation mechanism determines the current worth of Open Lending Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Open Lending Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Open Lending Corp based exclusively on its fundamental and basic technical indicators. By analyzing Open Lending'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 Open Lending'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 Open Lending. We calculate exposure to Open Lending's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Open Lending's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 95.2 M | 125.3 M | |
| Pretax Profit Margin | 0.25 | 0.37 | |
| Operating Profit Margin | 0.25 | 0.24 | |
| Net Profit Margin | 0.19 | 0.29 | |
| Gross Profit Margin | 0.81 | 0.98 |
8 Steps to conduct Open Lending's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Open Lending'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 Open Lending's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Open Lending's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Open Lending's revenue streams: Identify Open Lending's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Open Lending's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Open Lending's growth potential: Evaluate Open Lending's management, business model, and growth potential.
- Determine Open Lending'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 Open Lending's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Open Lending 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 Open Lending 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 | 121.5 M | |
| Quarterly Earnings Growth Y O Y | -0.895 | |
| Forward Price Earnings | 31.8471 |
Open Lending Current Valuation Indicators
Valuation refers to the process of determining the present value of Open Lending Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Open we look at many different elements of the entity such as Open's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Open Lending'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 Open Lending'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 Open Lending, 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 Open Lending'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 Open Lending's worth.When determining whether Open Lending Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Open Lending'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 Open Lending Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Open Lending Corp Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Open Lending Corp. 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. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Complementary Tools for Open Stock analysis
When running Open Lending's price analysis, check to measure Open Lending'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 Open Lending is operating at the current time. Most of Open Lending's value examination focuses on studying past and present price action to predict the probability of Open Lending's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Open Lending's price. Additionally, you may evaluate how the addition of Open Lending to your portfolios can decrease your overall portfolio volatility.
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Is Open Lending'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 Open Lending. If investors know Open 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 Open Lending 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 (0.90) | Earnings Share 0.18 | Revenue Per Share 0.972 | Quarterly Revenue Growth (0.44) | Return On Assets 0.0482 |
The market value of Open Lending Corp is measured differently than its book value, which is the value of Open that is recorded on the company's balance sheet. Investors also form their own opinion of Open Lending's value that differs from its market value or its book value, called intrinsic value, which is Open Lending'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 Open Lending's market value can be influenced by many factors that don't directly affect Open Lending'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 Open Lending's value and its price as these two are different measures arrived at by different means. Investors typically determine if Open Lending is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Open Lending'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.