Ruths Hospitality Group Valuation
| RUTHDelisted Stock | USD 21.49 0.00 0.00% |
At this time, the company appears to be overvalued. Ruths Hospitality holds a recent Real Value of $16.96 per share. The prevailing price of the company is $21.49. Our model determines the value of Ruths Hospitality from analyzing the company fundamentals such as Return On Equity of 0.28, shares outstanding of 32.13 M, and Operating Margin of 0.10 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors support purchasing undervalued entities and trading away overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
Overvalued
Today
Please note that Ruths Hospitality's price fluctuation is very steady at this time. Calculation of the real value of Ruths Hospitality is based on 3 months time horizon. Increasing Ruths Hospitality's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Ruths Hospitality Group is useful when determining the fair value of the Ruths stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Ruths Hospitality. Since Ruths Hospitality is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Ruths Stock. However, Ruths Hospitality'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 21.49 | Real 16.96 | Hype 21.49 |
The real value of Ruths Stock, also known as its intrinsic value, is the underlying worth of Ruths Hospitality Company, which is reflected in its stock price. It is based on Ruths Hospitality's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Ruths Hospitality'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 Ruths Hospitality'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 Ruths Hospitality Group helps investors to forecast how Ruths 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 Ruths Hospitality more accurately as focusing exclusively on Ruths Hospitality's fundamentals will not take into account other important factors: Ruths Hospitality Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Ruths Hospitality's current stock value. Our valuation model uses many indicators to compare Ruths Hospitality value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Ruths Hospitality competition to find correlations between indicators driving Ruths Hospitality's intrinsic value. More Info.Ruths Hospitality Group is rated below average in price to earning category among related companies. It is rated third in price to book category among related companies fabricating about 0.25 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Ruths Hospitality Group is roughly 3.94 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Ruths Hospitality by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Ruths Hospitality'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 Ruths Hospitality'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 Ruths Hospitality'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 Ruths Hospitality and how it compares across the competition.
About Ruths Hospitality Valuation
The delisted stock valuation mechanism determines the current worth of Ruths Hospitality Group on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Ruths Hospitality Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Ruths Hospitality based exclusively on its fundamental and basic technical indicators. By analyzing Ruths Hospitality'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 Ruths Hospitality'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 Ruths Hospitality. We calculate exposure to Ruths Hospitality's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Ruths Hospitality's related companies.Ruths Hospitality Group, Inc., together with its subsidiaries, develops, operates, and franchises fine dining restaurants under the Ruths Chris Steak House name. Ruths Hospitality Group, Inc. was founded in 1965 and is headquartered in Winter Park, Florida. Ruths Hospitality operates under Restaurants classification in the United States and is traded on NASDAQ Exchange. It employs 4527 people.
8 Steps to conduct Ruths Hospitality's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Ruths Hospitality'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 Ruths Hospitality's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Ruths Hospitality's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Ruths Hospitality's revenue streams: Identify Ruths Hospitality's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Ruths Hospitality's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Ruths Hospitality's growth potential: Evaluate Ruths Hospitality's management, business model, and growth potential.
- Determine Ruths Hospitality'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 Ruths Hospitality's 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 Ruths Hospitality represents a small ownership stake in the entity. As a stockholder of Ruths, 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.
Ruths Hospitality Dividends Analysis For Valuation
There are various types of dividends Ruths Hospitality 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 Ruths 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 Ruths Hospitality Group directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Ruths pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Ruths Hospitality by the value of the dividends paid out.
Ruths Hospitality 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 Ruths Hospitality 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 | 33.5 M | |
| Quarterly Earnings Growth Y O Y | 0.129 | |
| Forward Price Earnings | 13.7552 |
Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Consideration for investing in Ruths Stock
If you are still planning to invest in Ruths Hospitality check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Ruths Hospitality's history and understand the potential risks before investing.
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