ROOT Relative Valuation
ROOT'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, ROOT is overvalued; if below, it's undervalued.
Historical Valuation
Root Inc (ROOT) 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 1.68. The fair price of Root Inc (ROOT) is between NaN to NaN according to relative valuation methord.
Relative Value
Fair Zone
NaN-NaN
Current Price：81.51
Fair
53.15
PE
1Y
3Y
5Y
Trailing
Forward
7.75
EV/EBITDA
Root Inc. (ROOT) has a current EV/EBITDA of 7.75. The 5-year average EV/EBITDA is 6.01. The thresholds are as follows: Strongly Undervalued below -15.35, Undervalued between -15.35 and -4.67, Fairly Valued between 16.69 and -4.67, Overvalued between 16.69 and 27.37, and Strongly Overvalued above 27.37. The current Forward EV/EBITDA of 7.75 falls within the Historic Trend Line -Fairly Valued range.
18.95
EV/EBIT
Root Inc. (ROOT) has a current EV/EBIT of 18.95. The 5-year average EV/EBIT is 24.53. The thresholds are as follows: Strongly Undervalued below -98.96, Undervalued between -98.96 and -37.22, Fairly Valued between 86.28 and -37.22, Overvalued between 86.28 and 148.02, and Strongly Overvalued above 148.02. The current Forward EV/EBIT of 18.95 falls within the Historic Trend Line -Fairly Valued range.
0.77
PS
Root Inc. (ROOT) has a current PS of 0.77. The 5-year average PS is 2.61. The thresholds are as follows: Strongly Undervalued below -5.43, Undervalued between -5.43 and -1.41, Fairly Valued between 6.63 and -1.41, Overvalued between 6.63 and 10.65, and Strongly Overvalued above 10.65. The current Forward PS of 0.77 falls within the Historic Trend Line -Fairly Valued range.
0.00
P/OCF
Root Inc. (ROOT) has a current P/OCF of 0.00. The 5-year average P/OCF is -1.78. The thresholds are as follows: Strongly Undervalued below -7.70, Undervalued between -7.70 and -4.74, Fairly Valued between 1.18 and -4.74, Overvalued between 1.18 and 4.14, and Strongly Overvalued above 4.14. The current Forward P/OCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.
8.47
P/FCF
Root Inc. (ROOT) has a current P/FCF of 8.47. The 5-year average P/FCF is 1.15. The thresholds are as follows: Strongly Undervalued below -12.42, Undervalued between -12.42 and -5.64, Fairly Valued between 7.93 and -5.64, Overvalued between 7.93 and 14.71, and Strongly Overvalued above 14.71. The current Forward P/FCF of 8.47 falls within the Overvalued range.
Root Inc (ROOT) has a current Price-to-Book (P/B) ratio of 4.77. Compared to its 3-year average P/B ratio of 3.98 , the current P/B ratio is approximately 19.66% higher. Relative to its 5-year average P/B ratio of 3.04, the current P/B ratio is about 56.98% higher. Root Inc (ROOT) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of -73.51%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -72.37% , the current FCF yield is about -100.00% lower.
4.77
P/B
Median3y
3.98
Median5y
3.04
17.10
FCF Yield
Median3y
-73.51
Median5y
-72.37
Competitors Valuation Multiple
The average P/S ratio for ROOT's competitors is , providing a benchmark for relative valuation. Root Inc Corp (ROOT) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 26.86%, 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 ROOT increased by 12.29% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 12.11 to 24.38.
The secondary factor is the Revenue Growth, contributed 26.86%to the performance.
Overall, the performance of ROOT in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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