RXO Valuation
| RXO Stock | USD 18.46 0.22 1.21% |
At this time, the company appears to be undervalued. RXO Inc holds a recent Real Value of $21.62 per share. The prevailing price of the company is $18.46. Our model determines the value of RXO Inc from reviewing the company fundamentals such as Operating Margin of 0.01 %, return on equity of -0.26, and Return On Asset of 0.0072 as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting RXO's valuation include:
Price Book 1.8704 | Enterprise Value | Enterprise Value Ebitda 71.617 | Price Sales 0.6626 | Forward PE 57.8035 |
Undervalued
Today
Please note that RXO's price fluctuation is not too volatile at this time. Calculation of the real value of RXO Inc is based on 3 months time horizon. Increasing RXO's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since RXO is currently traded on the exchange, buyers and sellers on that exchange determine the market value of RXO Stock. However, RXO'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 18.46 | Real 21.62 | Target 27.0 | Hype 18.19 | Naive 16.69 |
The intrinsic value of RXO'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 RXO'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 RXO Inc helps investors to forecast how RXO 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 RXO more accurately as focusing exclusively on RXO'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 RXO's intrinsic value based on its ongoing forecasts of RXO's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against RXO's closest peers.
RXO Cash |
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RXO Valuation Trend
Knowing RXO's actual value is paramount for traders when making sound investment determinations. Using both RXO'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.
RXO Valuation Data Drivers
RXO Revenue by Product
RXO Total Value Analysis
RXO Inc is at this time anticipated to have company total value of 3.64 B with market capitalization of 3.02 B, debt of 664 M, and cash on hands of 98 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the RXO fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
3.64 B | 3.02 B | 664 M | 98 M |
RXO Investor Information
About 99.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.87. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. RXO Inc recorded a loss per share of 2.17. The entity had not issued any dividends in recent years. Based on the analysis of RXO's profitability, liquidity, and operating efficiency, RXO Inc is not in a good financial situation at this time. It has a very high risk of going through financial distress in April.RXO Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The recent return on assets of RXO suggests not a very effective usage of assets in March.RXO Ownership Allocation
The majority of RXO Inc outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in RXO Inc to benefit from reduced commissions. Accordingly, institutional investors are subject to a different set of regulations than regular investors in RXO. Please pay attention to any change in the institutional holdings of RXO Inc as this could imply that something significant has changed or is about to change at the company.RXO Profitability Analysis
The company reported the last year's revenue of 4.55 B. Reported Net Loss for the year was (285 K) with profit before taxes, overhead, and interest of 783 M.About RXO Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of RXO Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of RXO Inc based exclusively on its fundamental and basic technical indicators. By analyzing RXO's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of RXO's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of RXO. We calculate exposure to RXO's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of RXO's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 696 M | 673.3 M | |
| Pretax Profit Margin | (0.07) | (0.06) | |
| Operating Profit Margin | (0.01) | (0.01) | |
| Gross Profit Margin | 0.15 | 0.23 |
RXO 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 | 133.4 M | |
| Quarterly Earnings Growth Y O Y | -0.932 | |
| Forward Price Earnings | 57.8035 |
RXO Current Valuation Indicators
RXO'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 RXO'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 RXO, 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 RXO'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 RXO's worth.When determining whether RXO Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of RXO'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 Rxo Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Rxo Inc Stock: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in RXO Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in interest. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Is Cargo Ground Transportation 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 RXO. If investors know RXO 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 RXO listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.93) | Earnings Share (2.17) | Revenue Per Share | Quarterly Revenue Growth 0.705 | Return On Assets |
The market value of RXO Inc is measured differently than its book value, which is the value of RXO that is recorded on the company's balance sheet. Investors also form their own opinion of RXO's value that differs from its market value or its book value, called intrinsic value, which is RXO'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 RXO's market value can be influenced by many factors that don't directly affect RXO'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 RXO's value and its price as these two are different measures arrived at by different means. Investors typically determine if RXO is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, RXO'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.