This price target was derived from 2 valuation methods (which are averaged).
VRM Stock Forecast Using PE and EPS
VRM’s forward Earnings Per Share have been estimated to be -2.32. Furthermore, VRM’s forward Price to Earnings Ratio has been forecasted to reach -1.00. Multiplying VRM’s P/E and EPS together can help us to reach a price target of $2.32.
VRM Stock Forecast Via Comparable Analysis
My Comparable Analysis
Price/Book (P/B): VRM’s current P/B ratio is 0.41, compared to the average P/B ratio of VRM’s peers being 1.5. This implies that VRM is undervalued and its share price should change by a factor of 269.5% to be at fair value (based on VRM’s P/B compared to the P/B of its peers).
Current Ratio: VRM’s Current Ratio is 1.83, compared to the average current ratio of VRM’s peers being 1.63. This implies that VRM is undervalued and its share price should change by a factor of 12.42% to be at fair value (based on VRM’s CA/CL compared to the CA/CL of their peers).
The VRM stock is currently undervalued and needs to increase by (an average of) 140.96% to be “at fair value”. This would imply a forecasted price of $5.59 for the VRM stock.
What are the VRM Analysts Thinking?
Overall, 59.26% of analysts are bullish on the VRM stock giving it a ‘buy” rating. This is great news for us as the analysts agree with the conclusion that we arrived at by our 2 valuation methods.
VRM Analysis Conclusion
Based on my VRM stock forecast of $3.96, VRM’s current price of $2.32, and the bullish analyst sentiment, I would agree with the analysts and say that the VRM stock is a buy.
Let me know what you think, happy to dive into other aspects of VRM to help you make an informed investment decision.
Originally published at https://utradea.com.
