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 0.00 is considered Fairly compared with the five-year average of 27.47. The fair price of Rocket Companies Inc (RKT) is between to according to relative valuation methord.
Relative Value
Fair Zone
-
Current Price：19.39
Fair
29.25
PE
1Y
3Y
5Y
Trailing
Forward
24.21
EV/EBITDA
Rocket Companies Inc. (RKT) has a current EV/EBITDA of 24.21. The 5-year average EV/EBITDA is -43.39. The thresholds are as follows: Strongly Undervalued below -420.05, Undervalued between -420.05 and -231.72, Fairly Valued between 144.94 and -231.72, Overvalued between 144.94 and 333.27, and Strongly Overvalued above 333.27. The current Forward EV/EBITDA of 24.21 falls within the Historic Trend Line -Fairly Valued range.
29.76
EV/EBIT
Rocket Companies Inc. (RKT) has a current EV/EBIT of 29.76. The 5-year average EV/EBIT is 20.52. The thresholds are as follows: Strongly Undervalued below -26.89, Undervalued between -26.89 and -3.18, Fairly Valued between 44.22 and -3.18, Overvalued between 44.22 and 67.93, and Strongly Overvalued above 67.93. The current Forward EV/EBIT of 29.76 falls within the Historic Trend Line -Fairly Valued range.
5.90
PS
Rocket Companies Inc. (RKT) has a current PS of 5.90. The 5-year average PS is 0.68. The thresholds are as follows: Strongly Undervalued below -2.03, Undervalued between -2.03 and -0.67, Fairly Valued between 2.04 and -0.67, Overvalued between 2.04 and 3.40, and Strongly Overvalued above 3.40. The current Forward PS of 5.90 falls within the Strongly Overvalued range.
33.95
P/OCF
Rocket Companies Inc. (RKT) has a current P/OCF of 33.95. The 5-year average P/OCF is 1.24. The thresholds are as follows: Strongly Undervalued below -9.88, Undervalued between -9.88 and -4.32, Fairly Valued between 6.79 and -4.32, Overvalued between 6.79 and 12.35, and Strongly Overvalued above 12.35. The current Forward P/OCF of 33.95 falls within the Strongly Overvalued range.
35.36
P/FCF
Rocket Companies Inc. (RKT) has a current P/FCF of 35.36. The 5-year average P/FCF is 1.13. The thresholds are as follows: Strongly Undervalued below -10.48, Undervalued between -10.48 and -4.67, Fairly Valued between 6.94 and -4.67, Overvalued between 6.94 and 12.75, and Strongly Overvalued above 12.75. The current Forward P/FCF of 35.36 falls within the Strongly Overvalued range.
Rocket Companies Inc (RKT) has a current Price-to-Book (P/B) ratio of 4.62. Compared to its 3-year average P/B ratio of 2.88 , the current P/B ratio is approximately 60.33% higher. Relative to its 5-year average P/B ratio of 3.05, the current P/B ratio is about 51.40% higher. Rocket Companies Inc (RKT) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 101.98%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 274.09% , the current FCF yield is about -100.00% lower.
4.62
P/B
Median3y
2.88
Median5y
3.05
-1.66
FCF Yield
Median3y
101.98
Median5y
274.09
Competitors Valuation Multiple
The average P/S ratio for RKT's competitors is , providing a benchmark for relative valuation. Rocket Companies Inc Corp (RKT) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 126.51%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of RKT increased by 72.20% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 748.77M to 1.70B.
The secondary factor is the P/E Change, contributed 34.34%to the performance.
Overall, the performance of RKT in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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