Velocity Financial Valuation
| VEL Stock | USD 18.80 0.19 1.00% |
At this time, the company appears to be undervalued. Velocity Financial Llc has a current Real Value of $20.43 per share. The regular price of the company is $18.8. Our model measures the value of Velocity Financial Llc from inspecting the company fundamentals such as Shares Outstanding of 34.02 M, operating margin of 0.61 %, and Return On Equity of 0.14 as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Velocity Financial's valuation include:
Price Book 1.2371 | Enterprise Value | Price Sales 3.5997 | Trailing PE 9.8429 | Enterprise Value Revenue 25.9703 |
Undervalued
Today
Please note that Velocity Financial's price fluctuation is very steady at this time. Calculation of the real value of Velocity Financial Llc is based on 3 months time horizon. Increasing Velocity Financial's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Velocity stock is determined by what a typical buyer is willing to pay for full or partial control of Velocity Financial Llc. Since Velocity Financial is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Velocity Stock. However, Velocity Financial'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 18.8 | Real 20.43 | Target 21.75 | Hype 18.8 | Naive 18.27 |
The intrinsic value of Velocity Financial's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Velocity Financial's stock price.
Estimating the potential upside or downside of Velocity Financial Llc helps investors to forecast how Velocity 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 Velocity Financial more accurately as focusing exclusively on Velocity Financial'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 Velocity Financial's intrinsic value based on its ongoing forecasts of Velocity Financial's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Velocity Financial's closest peers.
Velocity Financial Cash |
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Velocity Valuation Trend
Knowing Velocity Financial's actual value is paramount for traders when making sound investment determinations. Using both Velocity Financial'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.
Velocity Financial Total Value Analysis
Velocity Financial Llc is at this time forecasted to have company total value of 5.45 B with market capitalization of 639.49 M, debt of 4.86 B, and cash on hands of 45.25 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 Velocity Financial fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
5.45 B | 639.49 M | 4.86 B | 45.25 M |
Velocity Financial Investor Information
About 96.0% of the company outstanding shares are owned by institutional investors. The company has Price to Book (P/B) ratio of 1.24. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. Velocity Financial Llc had not issued any dividends in recent years. Velocity Financial Llc 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 | 0.45 | 0.4789 |
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| Operating Income | 72.1 M | 101.4 M |
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Velocity Financial Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Velocity Financial has an asset utilization ratio of 3.83 percent. This suggests that the Company is making $0.0383 for each dollar of assets. An increasing asset utilization means that Velocity Financial Llc is more efficient with each dollar of assets it utilizes for everyday operations.Velocity Financial Ownership Allocation
Velocity Financial Llc shows a total of 34.02 Million outstanding shares. The majority of Velocity Financial Llc outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Velocity Financial to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Velocity Financial Llc. Please pay attention to any change in the institutional holdings of Velocity Financial Llc 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.Velocity Financial Profitability Analysis
The company reported the last year's revenue of 211.74 M. Total Income to common stockholders was 68.47 M with profit before taxes, overhead, and interest of 132.79 M.About Velocity Financial Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Velocity Financial Llc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Velocity Financial Llc based exclusively on its fundamental and basic technical indicators. By analyzing Velocity Financial's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Velocity Financial's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Velocity Financial. We calculate exposure to Velocity Financial's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Velocity Financial's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 211.7 M | 222.3 M | |
| Pretax Profit Margin | 0.46 | 0.28 | |
| Operating Profit Margin | 0.48 | 0.45 | |
| Net Profit Margin | 0.32 | 0.21 | |
| Gross Profit Margin | 0.99 | 0.94 |
Velocity Financial Quarterly Retained Earnings |
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Velocity Financial Growth Indicators
Investing in growth stocks can be very risky. If the company such as Velocity Financial 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 | 35.8 M | |
| Quarterly Earnings Growth Y O Y | 0.15 |
Velocity Financial Current Valuation Indicators
Velocity Financial'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 Velocity Financial'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 Velocity Financial, 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 Velocity Financial'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 Velocity Financial's worth.When determining whether Velocity Financial Llc is a strong investment it is important to analyze Velocity Financial's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Velocity Financial's future performance. For an informed investment choice regarding Velocity Stock, refer to the following important reports: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Velocity Financial Llc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
Is Commercial & Residential Mortgage Finance 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 Velocity Financial. If investors know Velocity 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 Velocity Financial 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 0.15 | Earnings Share 1.91 | Revenue Per Share | Quarterly Revenue Growth 0.884 | Return On Assets |
The market value of Velocity Financial Llc is measured differently than its book value, which is the value of Velocity that is recorded on the company's balance sheet. Investors also form their own opinion of Velocity Financial's value that differs from its market value or its book value, called intrinsic value, which is Velocity Financial'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 Velocity Financial's market value can be influenced by many factors that don't directly affect Velocity Financial'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 Velocity Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Velocity Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Velocity Financial'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.