Franchise Group Valuation
| FRGAPDelisted Preferred Stock | USD 24.93 0.08 0.32% |
At this time, the firm appears to be overvalued. Franchise Group shows a prevailing Real Value of $20.22 per share. The current price of the firm is $24.93. Our model computes the value of Franchise Group from reviewing the firm fundamentals such as Current Valuation of 2.85 B, operating margin of 0.08 %, and Profit Margin of 0.02 % as well as analyzing its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Franchise's price fluctuation is very steady at this time. Calculation of the real value of Franchise Group is based on 3 months time horizon. Increasing Franchise's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Franchise's intrinsic value may or may not be the same as its current market price of 24.93, 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 24.93 | Real 20.22 | Hype 24.93 | Naive 24.47 |
The intrinsic value of Franchise'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 Franchise'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 Franchise Group helps investors to forecast how Franchise preferred 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 Franchise more accurately as focusing exclusively on Franchise's fundamentals will not take into account other important factors: Franchise Total Value Analysis
Franchise Group is currently forecasted to have takeover price of 2.85 B with market capitalization of 2.85 B, debt of 1.38 B, and cash on hands of 95.04 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Franchise fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
2.85 B | 2.85 B | 1.38 B | 95.04 M |
Franchise Investor Information
About 40.0% of the company shares are owned by institutional investors. The company recorded earning per share (EPS) of 8.59. Franchise Group last dividend was issued on the 30th of December 2022. Based on the measurements of operating efficiency obtained from Franchise's historical financial statements, Franchise Group is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.Franchise Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Franchise has an asset utilization ratio of 83.19 percent. This connotes that the Company is making $0.83 for each dollar of assets. An increasing asset utilization means that Franchise Group is more efficient with each dollar of assets it utilizes for everyday operations.Franchise Profitability Analysis
The company reported the revenue of 3.26 B. Net Income was 363.79 M with profit before overhead, payroll, taxes, and interest of 1.33 B.About Franchise Valuation
The delisted preferred stock valuation mechanism determines Franchise's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Franchise Group based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Franchise. We calculate exposure to Franchise's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Franchise's related companies.Franchise Group, Inc. owns and operates franchised and franchisable businesses. Franchise Group, Inc. was incorporated in 2010 and is headquartered in Delaware, Ohio. Franchise operates under Specialty Retail classification in the United States and is traded on NASDAQ Exchange. It employs 9119 people.
8 Steps to conduct Franchise's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Franchise'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 Franchise's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Franchise's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Franchise's revenue streams: Identify Franchise's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Franchise's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Franchise's growth potential: Evaluate Franchise's management, business model, and growth potential.
- Determine Franchise'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 Franchise's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Franchise Growth Indicators
Investing in growth stocks can be very risky. If the company such as Franchise 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 | 40.3 M | |
| Quarterly Earnings Growth Y O Y | 0.054 | |
| Retained Earnings | 287 M |
Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Consideration for investing in Franchise Preferred Stock
If you are still planning to invest in Franchise Group 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 Franchise's history and understand the potential risks before investing.
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