RKT Valuation

Rocket Companies Inc

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21.140

-0.02(-0.095%)1D

Overview
Forecast
Valuation
Earnings

RKT Relative Valuation

RKT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, RKT is overvalued; if below, it's undervalued.

Historical Valuation

Rocket Companies Inc (RKT) is now in the Fair zone, suggesting that its current forward PS ratio of 6.29 is considered Fairly compared with the five-year average of 26.62. The fair price of Rocket Companies Inc (RKT) is between to according to relative valuation methord.

Relative Value

Fair Zone

Current Price：20.86

Fair

48.07

Trailing

Forward

80.80

EV/EBITDA

Rocket Companies Inc. (RKT) has a current EV/EBITDA of 80.80. The 5-year average EV/EBITDA is -44.30. The thresholds are as follows: Strongly Undervalued below -420.21, Undervalued between -420.21 and -232.25, Fairly Valued between 143.65 and -232.25, Overvalued between 143.65 and 331.61, and Strongly Overvalued above 331.61. The current Forward EV/EBITDA of 80.80 falls within the Historic Trend Line -Fairly Valued range.

51.29

EV/EBIT

Rocket Companies Inc. (RKT) has a current EV/EBIT of 51.29. The 5-year average EV/EBIT is 19.42. The thresholds are as follows: Strongly Undervalued below -28.21, Undervalued between -28.21 and -4.39, Fairly Valued between 43.24 and -4.39, Overvalued between 43.24 and 67.05, and Strongly Overvalued above 67.05. The current Forward EV/EBIT of 51.29 falls within the Overvalued range.

6.29

Rocket Companies Inc. (RKT) has a current PS of 6.29. The 5-year average PS is 0.47. The thresholds are as follows: Strongly Undervalued below -1.46, Undervalued between -1.46 and -0.50, Fairly Valued between 1.44 and -0.50, Overvalued between 1.44 and 2.41, and Strongly Overvalued above 2.41. The current Forward PS of 6.29 falls within the Strongly Overvalued range.

0.00

P/OCF

Rocket Companies Inc. (RKT) has a current P/OCF of 0.00. The 5-year average P/OCF is 0.15. The thresholds are as follows: Strongly Undervalued below -0.54, Undervalued between -0.54 and -0.20, Fairly Valued between 0.49 and -0.20, Overvalued between 0.49 and 0.84, and Strongly Overvalued above 0.84. The current Forward P/OCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/FCF

Rocket Companies Inc. (RKT) has a current P/FCF of 0.00. The 5-year average P/FCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/FCF of 0.00 falls within the Strongly Undervalued range.

Rocket Companies Inc (RKT) has a current Price-to-Book (P/B) ratio of 5.68. Compared to its 3-year average P/B ratio of 2.68 , the current P/B ratio is approximately 112.20% higher. Relative to its 5-year average P/B ratio of 3.14, the current P/B ratio is about 81.10% higher. Rocket Companies Inc (RKT) has a Forward Free Cash Flow (FCF) yield of approximately -4.96%. Compared to its 3-year average FCF yield of 221.45%, the current FCF yield is approximately -102.24% lower. Relative to its 5-year average FCF yield of 265.22% , the current FCF yield is about -101.87% lower.

5.68

P/B

Median3y

2.68

Median5y

3.14

-4.96

FCF Yield

Median3y

221.45

Median5y

265.22

Competitors Valuation Multiple

The average P/S ratio for RKT's competitors is 5.10, providing a benchmark for relative valuation. Rocket Companies Inc Corp (RKT) exhibits a P/S ratio of 6.29, which is 23.26% above the industry average. Given its robust revenue growth of 5.00%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

SoFi Technologies Inc

Performance Decomposition

Market capitalization of RKT increased by 10.27% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -1.51K to -2.83K.

The secondary factor is the Revenue Growth, contributed 5.00%to the performance.

Overall, the performance of RKT in the past 1 year is driven by P/E Change. Which is more unsustainable.

5.00%

1.38B → 1.45B

Revenue Growth

-81.74%

12.87 → 2.35

Margin Expansion

87.01%

-1.51K → -2.83K

P/E Change

10.27%