Credit Acceptance Valuation
| CACC Stock | USD 497.70 0.00 0.00% |
At this time, the firm appears to be overvalued. Credit Acceptance shows a prevailing Real Value of $402.4 per share. The current price of the firm is $497.7. Our model approximates the value of Credit Acceptance from analyzing the firm fundamentals such as return on equity of 0.14, and Profit Margin of 0.27 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Credit Acceptance's valuation include:
Price Book 3.3401 | Enterprise Value | Enterprise Value Ebitda 33.5873 | Price Sales 6.5073 | Forward PE 10.3413 |
Overvalued
Today
Please note that Credit Acceptance's price fluctuation is very steady at this time. Calculation of the real value of Credit Acceptance is based on 3 months time horizon. Increasing Credit Acceptance's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Credit Acceptance is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Credit Stock. However, Credit Acceptance'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 497.7 | Real 402.4 | Target 436.5 | Hype 498.32 | Naive 515.0 |
The real value of Credit Stock, also known as its intrinsic value, is the underlying worth of Credit Acceptance Company, which is reflected in its stock price. It is based on Credit Acceptance's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Credit Acceptance'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, or news.
Estimating the potential upside or downside of Credit Acceptance helps investors to forecast how Credit 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 Credit Acceptance more accurately as focusing exclusively on Credit Acceptance'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 Credit Acceptance's intrinsic value based on its ongoing forecasts of Credit Acceptance's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Credit Acceptance's closest peers. If more than one evaluation category is relevant for Credit Acceptance we suggest using both methods to arrive at a better estimate.
Credit Acceptance Cash |
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Credit Valuation Trend
Comparing Credit Acceptance's enterprise value against its market capitalization is a good way to estimate the value of Credit Acceptance uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
Credit Acceptance Total Value Analysis
Credit Acceptance is currently forecasted to have valuation of 11.85 B with market capitalization of 6.04 B, debt of 6.35 B, and cash on hands of 4.1 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Credit Acceptance fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
11.85 B | 6.04 B | 6.35 B | 4.1 M |
Credit Acceptance Investor Information
About 39.0% of the company shares are held by company insiders. The book value of Credit Acceptance was currently reported as 145.22. The company has Price/Earnings To Growth (PEG) ratio of 1.15. Credit Acceptance recorded earning per share (EPS) of 20.53. The entity had not issued any dividends in recent years. The firm had 2:1 split on the 21st of December 1994. Based on the measurements of operating efficiency obtained from Credit Acceptance's historical financial statements, Credit Acceptance may be sliding down financialy. It has an above-average chance of going through some form of financial crunch next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.55 | 0.384 |
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| Total Cash From Operating Activities | 1.1 B | 1.1 B |
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| Operating Income | 871.8 M | 830.3 M |
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Credit Acceptance Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Credit Acceptance has an asset utilization ratio of 24.42 percent. This indicates that the Company is making $0.24 for each dollar of assets. An increasing asset utilization means that Credit Acceptance is more efficient with each dollar of assets it utilizes for everyday operations.Credit Acceptance Ownership Allocation
The market capitalization of Credit Acceptance is $6.04 Billion. Over half of Credit Acceptance's outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to as corporate investors that acquire positions in a given instrument to benefit from reduced trade commissions. Also note that nearly five hundred eighty-five thousand nine hundred thirty-nine invesors are currently shorting Credit Acceptance expressing very little confidence in its future performance.Credit Acceptance Profitability Analysis
The company reported the previous year's revenue of 2.16 B. Net Income was 247.9 M with profit before overhead, payroll, taxes, and interest of 854.7 M.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Credit Acceptance'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 Credit Acceptance and how it compares across the competition.
About Credit Acceptance Valuation
The stock valuation mechanism determines Credit Acceptance's current worth on a weekly basis. Our valuation model uses a comparative analysis of Credit Acceptance. We calculate exposure to Credit Acceptance's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Credit Acceptance's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.4 B | 1.4 B | |
| Pretax Profit Margin | 0.15 | 0.14 | |
| Operating Profit Margin | 0.38 | 0.55 | |
| Net Profit Margin | 0.11 | 0.11 | |
| Gross Profit Margin | 0.63 | 0.76 |
Credit Acceptance Quarterly Retained Earnings |
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Credit Acceptance 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.
| Common Stock Shares Outstanding | 12.5 M | |
| Quarterly Earnings Growth Y O Y | 0.682 | |
| Forward Price Earnings | 10.3413 |
Credit Acceptance Current Valuation Indicators
Valuation refers to the process of determining the present value of Credit Acceptance and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Credit we look at many different elements of the entity such as Credit's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Credit Acceptance, 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 Credit Acceptance'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 Credit Acceptance's worth.Complementary Tools for Credit Stock analysis
When running Credit Acceptance's price analysis, check to measure Credit Acceptance'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 Credit Acceptance is operating at the current time. Most of Credit Acceptance's value examination focuses on studying past and present price action to predict the probability of Credit Acceptance's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Credit Acceptance's price. Additionally, you may evaluate how the addition of Credit Acceptance to your portfolios can decrease your overall portfolio volatility.
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