Ree Automotive Valuation
| REE Stock | USD 4.08 0.41 11.17% |
At this time, the company appears to be undervalued. Ree Automotive Holding holds a recent Real Value of $6.61 per share. The prevailing price of the company is $4.08. Our model determines the value of Ree Automotive Holding from analyzing the company fundamentals such as Current Valuation of (2.77 M), return on equity of -0.9, and Shares Owned By Insiders of 23.74 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors support purchasing undervalued entities and exiting overvalued entities since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting Ree Automotive's valuation include:
Price Book 0.5159 | Enterprise Value -2.8 M | Enterprise Value Ebitda 0.0585 | Price Sales 25.0489 | Enterprise Value Revenue 1.7087 |
Undervalued
Today
Please note that Ree Automotive's price fluctuation is relatively risky at this time. Calculation of the real value of Ree Automotive Holding is based on 3 months time horizon. Increasing Ree Automotive's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Ree Automotive Holding is useful when determining the fair value of the Ree stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Ree Automotive. Since Ree Automotive is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Ree Stock. However, Ree Automotive'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 4.08 | Real 6.61 | Target 14.38 | Hype 4.1 | Naive 3.32 |
The real value of Ree Stock, also known as its intrinsic value, is the underlying worth of Ree Automotive Holding Company, which is reflected in its stock price. It is based on Ree Automotive's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Ree Automotive'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 Ree Automotive'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 Ree Automotive Holding helps investors to forecast how Ree 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 Ree Automotive more accurately as focusing exclusively on Ree Automotive'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 Ree Automotive's intrinsic value based on its ongoing forecasts of Ree Automotive's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Ree Automotive's closest peers. When choosing an evaluation method for Ree Automotive Holding, 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.
Ree Automotive Investments |
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Ree Valuation Trend
Knowing Ree Automotive's actual value is paramount for traders to make sound investment determinations. Ree Automotive's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Ree Automotive's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Ree Automotive'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.
Ree Market Cap
Ree Automotive Holding is rated below average in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is at this time estimated at about 25.41 Billion. Ree Automotive adds roughly 44.18 Million in market capitalization claiming only tiny portion of stocks in Consumer Discretionary industry.Ree Automotive Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Ree Automotive's current stock value. Our valuation model uses many indicators to compare Ree Automotive value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Ree Automotive competition to find correlations between indicators driving Ree Automotive's intrinsic value. More Info.Ree Automotive Holding is rated below average in price to book category among related companies. It is currently regarded as top stock in price to sales category among related companies fabricating about 48.55 of Price To Sales per Price To Book. At present, Ree Automotive's Price To Sales Ratio is projected to increase significantly based on the last few years of reporting.Comparative valuation analysis is a catch-all model that can be used if you cannot value Ree Automotive by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Ree Automotive'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 Ree Automotive'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 Ree Automotive'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 Ree Automotive and how it compares across the competition.
About Ree Automotive Valuation
The stock valuation mechanism determines the current worth of Ree Automotive Holding on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Ree Automotive Holding. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Ree Automotive Holding based exclusively on its fundamental and basic technical indicators. By analyzing Ree Automotive'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 Ree Automotive'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 Ree Automotive. We calculate exposure to Ree Automotive's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Ree Automotive's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | -7.5 M | -7.1 M | |
| Pretax Profit Margin | (82.65) | (86.78) | |
| Operating Profit Margin | (85.74) | (90.03) | |
| Net Loss | (81.68) | (85.76) | |
| Gross Profit Margin | (5.34) | (5.60) |
8 Steps to conduct Ree Automotive's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Ree Automotive'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 Ree Automotive's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Ree Automotive's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Ree Automotive's revenue streams: Identify Ree Automotive's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Ree Automotive's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Ree Automotive's growth potential: Evaluate Ree Automotive's management, business model, and growth potential.
- Determine Ree Automotive'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 Ree Automotive's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Ree Automotive 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 Ree Automotive 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 | 10.1 M |
Ree Automotive Current Valuation Indicators
Valuation refers to the process of determining the present value of Ree Automotive Holding and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Ree we look at many different elements of the entity such as Ree's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Ree Automotive'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 Ree Automotive'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 Ree Automotive, 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 Ree Automotive'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 Ree Automotive's worth.When determining whether Ree Automotive Holding is a strong investment it is important to analyze Ree Automotive's 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 Ree Automotive's future performance. For an informed investment choice regarding Ree Stock, refer to the following important reports: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Ree Automotive Holding. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in income. Note that the Ree Automotive Holding information on this page should be used as a complementary analysis to other Ree Automotive's 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Complementary Tools for Ree Stock analysis
When running Ree Automotive's price analysis, check to measure Ree Automotive'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 Ree Automotive is operating at the current time. Most of Ree Automotive's value examination focuses on studying past and present price action to predict the probability of Ree Automotive's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ree Automotive's price. Additionally, you may evaluate how the addition of Ree Automotive to your portfolios can decrease your overall portfolio volatility.
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Is Ree Automotive'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 Ree Automotive. If investors know Ree 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 Ree Automotive listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (11.32) | Revenue Per Share 0.159 | Quarterly Revenue Growth (1.00) | Return On Assets (0.42) | Return On Equity (0.90) |
The market value of Ree Automotive Holding is measured differently than its book value, which is the value of Ree that is recorded on the company's balance sheet. Investors also form their own opinion of Ree Automotive's value that differs from its market value or its book value, called intrinsic value, which is Ree Automotive'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 Ree Automotive's market value can be influenced by many factors that don't directly affect Ree Automotive'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 Ree Automotive's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ree Automotive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ree Automotive'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.