LivePerson Valuation
| LPSN Stock | USD 0.89 0.01 1.11% |
Today, the firm appears to be undervalued. LivePerson secures a last-minute Real Value of $1.97 per share. The latest price of the firm is $0.89. Our model forecasts the value of LivePerson from analyzing the firm fundamentals such as Return On Equity of -1.38, current valuation of 409.81 M, and Profit Margin of (0.19) % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting LivePerson's valuation include:
Price Book 1.7631 | Enterprise Value 409.8 M | Enterprise Value Ebitda (6.93) | Price Sales 0.2418 | Forward PE 19.305 |
Undervalued
Today
Please note that LivePerson's price fluctuation is dangerous at this time. Calculation of the real value of LivePerson is based on 3 months time horizon. Increasing LivePerson's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since LivePerson is currently traded on the exchange, buyers and sellers on that exchange determine the market value of LivePerson Stock. However, LivePerson'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 0.89 | Real 1.97 | Target 5.29 | Hype 0.88 | Naive 1.06 |
The intrinsic value of LivePerson'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 LivePerson'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 LivePerson helps investors to forecast how LivePerson 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 LivePerson more accurately as focusing exclusively on LivePerson'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 LivePerson's intrinsic value based on its ongoing forecasts of LivePerson's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against LivePerson's closest peers.
LivePerson Cash |
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LivePerson Valuation Trend
Knowing LivePerson's actual value is paramount for traders when making sound investment determinations. Using both LivePerson's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
LivePerson Total Value Analysis
LivePerson is now projected to have valuation of 409.81 M with market capitalization of 80.94 M, debt of 591.89 M, and cash on hands of 425.94 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 LivePerson fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
409.81 M | 80.94 M | 591.89 M | 425.94 M |
LivePerson Investor Information
About 38.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.76. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. LivePerson recorded a loss per share of 0.75. The entity had not issued any dividends in recent years. Based on the analysis of LivePerson's profitability, liquidity, and operating efficiency, LivePerson is not in a good financial situation at the present time. It has a very high chance of going through financial crunch in January.LivePerson Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. LivePerson has an asset utilization ratio of 48.11 percent. This suggests that the Company is making $0.48 for each dollar of assets. An increasing asset utilization means that LivePerson is more efficient with each dollar of assets it utilizes for everyday operations.LivePerson Ownership Allocation
LivePerson maintains a total of 90.85 Million outstanding shares. 30% of LivePerson outstanding shares are owned by institutional investors. Institutional investors are typically referred to investors that purchase positions in a given stock to benefit from reduced commissions. Consequently, institutional investors are subject to different rules and regulations than regular investors. Please look out for any change in current institutional holding as this could mean something significant has changed at the company or is about to change. Please note that no matter how many assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.LivePerson Profitability Analysis
The company reported the previous year's revenue of 401.98 M. Net Loss for the year was (100.44 M) with profit before overhead, payroll, taxes, and interest of 330.1 M.About LivePerson Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of LivePerson. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of LivePerson based exclusively on its fundamental and basic technical indicators. By analyzing LivePerson's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of LivePerson's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of LivePerson. We calculate exposure to LivePerson's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of LivePerson's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 259.2 M | 272.1 M | |
| Pretax Profit Margin | (0.24) | (0.25) | |
| Operating Profit Margin | (0.28) | (0.29) | |
| Net Loss | (0.25) | (0.26) | |
| Gross Profit Margin | 0.64 | 0.53 |
LivePerson 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 | 78.6 M | |
| Forward Price Earnings | 19.305 |
LivePerson Current Valuation Indicators
LivePerson's 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 LivePerson's 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 LivePerson, 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 LivePerson'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 LivePerson's worth.When determining whether LivePerson offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of LivePerson's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Liveperson Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Liveperson Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in LivePerson. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state. To learn how to invest in LivePerson Stock, please use our How to Invest in LivePerson guide.You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of LivePerson. If investors know LivePerson will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about LivePerson listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.75) | Revenue Per Share 3.826 | Quarterly Revenue Growth (0.27) | Return On Assets (0.07) | Return On Equity (1.38) |
The market value of LivePerson is measured differently than its book value, which is the value of LivePerson that is recorded on the company's balance sheet. Investors also form their own opinion of LivePerson's value that differs from its market value or its book value, called intrinsic value, which is LivePerson's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because LivePerson's market value can be influenced by many factors that don't directly affect LivePerson's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between LivePerson's value and its price as these two are different measures arrived at by different means. Investors typically determine if LivePerson is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LivePerson's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.