What would the acquisition value of Vivint Smart Home be today? Calculating the true value of any business or its net worth is not as easy as it may seem. While the market cap of a public entity, such as Vivint Smart, is its stock price multiplied by the total number of shares outstanding, calculating Vivint Smart's enterprise value requires a different approach. It uses Vivint Smart's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.Vivint Smart Home has a current Real Value of $10.26 per share. The regular price of the company is $12.0. At this time, the company appears to be overvalued. Our model measures the value of Vivint Smart Home from inspecting the company fundamentals such as Return On Asset of 0.0158, current valuation of 4.99 B, and Shares Owned By Insiders of 8.66 % as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend acquiring undervalued stocks and selling overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
Vivint Smart 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 Vivint Smart's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Please note that Vivint Smart's price fluctuation is very steady at this time. Calculation of the real value of Vivint Smart Home is based on 3 months time horizon. Increasing Vivint Smart's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Estimating the potential upside or downside of Vivint Smart Home helps investors to forecast how Vivint 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 Vivint Smart more accurately as focusing exclusively on Vivint Smart's fundamentals will not take into account other important factors:
Vivint Smart Valuation Ratios as Compared to CompetitionComparative valuation techniques use various fundamental indicators to help in determining Vivint Smart's current stock value. Our valuation model uses many indicators to compare Vivint Smart value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Vivint Smart competition to find correlations between indicators driving Vivint Smart's intrinsic value. More Info. Vivint Smart Home is rated first in price to sales category among related companies. It is rated first in beta category among related companies totaling about 0.71 of Beta per Price To Sales. The ratio of Price To Sales to Beta for Vivint Smart Home is roughly 1.40 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Vivint Smart by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Vivint Smart'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 Vivint Smart'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 Vivint Smart'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 Vivint Smart and how it compares across the competition.
About Vivint Smart ValuationThe delisted stock valuation mechanism determines the current worth of Vivint Smart Home on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Vivint Smart Home. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Vivint Smart Home based exclusively on its fundamental and basic technical indicators. By analyzing Vivint Smart'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 Vivint Smart'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 Vivint Smart. We calculate exposure to Vivint Smart's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Vivint Smart's related companies.
8 Steps to conduct Vivint Smart's Valuation AnalysisCompany's valuation is the process of determining the worth of any company in monetary terms. It estimates Vivint Smart'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 Vivint Smart's valuation analysis, follow these 8 steps:
- Gather financial information: Obtain Vivint Smart's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Vivint Smart's revenue streams: Identify Vivint Smart's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Vivint Smart's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Vivint Smart's growth potential: Evaluate Vivint Smart's management, business model, and growth potential.
- Determine Vivint Smart'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 Vivint Smart's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Vivint Smart 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 Vivint Smart 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.
Check out World Market Map 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 industry. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Consideration for investing in Vivint Stock
If you are still planning to invest in Vivint Smart Home 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 Vivint Smart's history and understand the potential risks before investing.