At this time, the company appears to be overvalued. Torrid Holdings has a current Real Value of $4.73 per share. The regular price of the company is $5.72. Our model measures the value of Torrid Holdings from inspecting the company fundamentals such as Shares Owned By Insiders of 9.94 %, current valuation of 1.03 B, and Return On Asset of 0.0752 as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Torrid Holdings' valuation include:
Enterprise Value
1 B
Enterprise Value Ebitda
7.478
Price Sales
0.5241
Forward PE
1.9205
Trailing PE
40.5
Overvalued
Today 5.72
Please note that Torrid Holdings' price fluctuation is unstable at this time. Calculation of the real value of Torrid Holdings is based on 3 months time horizon. Increasing Torrid Holdings' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Torrid stock is determined by what a typical buyer is willing to pay for full or partial control of Torrid Holdings. Since Torrid Holdings is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Torrid Stock. However, Torrid Holdings' 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 5.72
Real 4.73
Target 4.2
Hype 6.0
Naive 5.78
The intrinsic value of Torrid Holdings' 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 Torrid Holdings' 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 Torrid Holdings helps investors to forecast how Torrid 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 Torrid Holdings more accurately as focusing exclusively on Torrid Holdings' 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 Torrid Holdings' intrinsic value based on its ongoing forecasts of Torrid Holdings' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Torrid Holdings' closest peers.
Torrid Holdings Cash
10.03 Million
Torrid Valuation Trend
Analysing the historical paterns of Torrid Holdings' enterprise value and its market capitalization is a good way to estimate and gauge the value of Torrid Holdings over time and is usually enough for investors to make rational market timing decisions.
Torrid Revenue by Product
Torrid Holdings Total Value Analysis
Torrid Holdings is currently projected to have valuation of 1.03 B with market capitalization of 593.97 M, debt of 311.97 M, and cash on hands of 22.98 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 Torrid Holdings fundamentals before making equity appraisal based on enterprise value of the company
About 82.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 0.64. Torrid Holdings had not issued any dividends in recent years. Based on the key indicators related to Torrid Holdings' liquidity, profitability, solvency, and operating efficiency, Torrid Holdings is performing exceptionally good at the moment. It has a great risk to report excellent financial results in February.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Torrid Holdings has an asset utilization ratio of 241.52 percent. This indicates that the Company is making $2.42 for each dollar of assets. An increasing asset utilization means that Torrid Holdings is more efficient with each dollar of assets it utilizes for everyday operations.
Covid
Torrid Holdings Ownership Allocation
Torrid Holdings shows a total of 104.76 Million outstanding shares. The majority of Torrid Holdings outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Torrid Holdings to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Torrid Holdings. Please pay attention to any change in the institutional holdings of Torrid Holdings as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.
Torrid Holdings Profitability Analysis
The company reported the previous year's revenue of 1.15 B. Net Income was 11.62 M with profit before overhead, payroll, taxes, and interest of 459.54 M.
About Torrid Holdings Valuation
Our relative valuation model uses a comparative analysis of Torrid Holdings. We calculate exposure to Torrid Holdings's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Torrid Holdings's related companies.
Investing in growth stocks can be very risky. If the company such as Torrid Holdings 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
104.4 M
Quarterly Earnings Growth Y O Y
0.328
Forward Price Earnings
1.9205
Torrid Holdings Current Valuation Indicators
Torrid Holdings' valuation analysis is 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 Torrid Holdings' 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 Torrid Holdings, 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 Torrid Holdings' 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 Torrid Holdings' worth.
Additional Tools for Torrid Stock Analysis
When running Torrid Holdings' price analysis, check to measure Torrid Holdings' 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 Torrid Holdings is operating at the current time. Most of Torrid Holdings' value examination focuses on studying past and present price action to predict the probability of Torrid Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Torrid Holdings' price. Additionally, you may evaluate how the addition of Torrid Holdings to your portfolios can decrease your overall portfolio volatility.