ROOT Valuation

Root Inc

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90.430

+0.87(0.971%)1D

Overview
Forecast
Valuation
Earnings

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 0.92 is considered Fairly compared with the five-year average of -3.16. The fair price of Root Inc (ROOT) is between 82.31 to 146.54 according to relative valuation methord.

Relative Value

Fair Zone

82.31-146.54

Current Price：90.43

Fair

55.36

Trailing

Forward

11.58

EV/EBITDA

Root Inc. (ROOT) has a current EV/EBITDA of 11.58. The 5-year average EV/EBITDA is 5.29. The thresholds are as follows: Strongly Undervalued below -17.11, Undervalued between -17.11 and -5.91, Fairly Valued between 16.49 and -5.91, Overvalued between 16.49 and 27.69, and Strongly Overvalued above 27.69. The current Forward EV/EBITDA of 11.58 falls within the Historic Trend Line -Fairly Valued range.

34.61

EV/EBIT

Root Inc. (ROOT) has a current EV/EBIT of 34.61. The 5-year average EV/EBIT is 23.98. The thresholds are as follows: Strongly Undervalued below -103.11, Undervalued between -103.11 and -39.56, Fairly Valued between 87.52 and -39.56, Overvalued between 87.52 and 151.07, and Strongly Overvalued above 151.07. The current Forward EV/EBIT of 34.61 falls within the Historic Trend Line -Fairly Valued range.

0.92

Root Inc. (ROOT) has a current PS of 0.92. The 5-year average PS is 3.21. The thresholds are as follows: Strongly Undervalued below -7.19, Undervalued between -7.19 and -1.99, Fairly Valued between 8.41 and -1.99, Overvalued between 8.41 and 13.60, and Strongly Overvalued above 13.60. The current Forward PS of 0.92 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 -2.07. The thresholds are as follows: Strongly Undervalued below -8.47, Undervalued between -8.47 and -5.27, Fairly Valued between 1.13 and -5.27, Overvalued between 1.13 and 4.33, and Strongly Overvalued above 4.33. The current Forward P/OCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

9.84

P/FCF

Root Inc. (ROOT) has a current P/FCF of 9.84. The 5-year average P/FCF is 0.16. The thresholds are as follows: Strongly Undervalued below -13.75, Undervalued between -13.75 and -6.79, Fairly Valued between 7.12 and -6.79, Overvalued between 7.12 and 14.07, and Strongly Overvalued above 14.07. The current Forward P/FCF of 9.84 falls within the Overvalued range.

Root Inc (ROOT) has a current Price-to-Book (P/B) ratio of 5.70. Compared to its 3-year average P/B ratio of 3.50 , the current P/B ratio is approximately 62.63% higher. Relative to its 5-year average P/B ratio of 2.81, the current P/B ratio is about 103.01% higher. Root Inc (ROOT) has a Forward Free Cash Flow (FCF) yield of approximately 14.13%. Compared to its 3-year average FCF yield of -94.35%, the current FCF yield is approximately -114.98% lower. Relative to its 5-year average FCF yield of -76.37% , the current FCF yield is about -118.50% lower.

5.70

P/B

Median3y

3.50

Median5y

2.81

14.13

FCF Yield

Median3y

-94.35

Median5y

-76.37

Competitors Valuation Multiple

The average P/S ratio for ROOT's competitors is 1.02, providing a benchmark for relative valuation. Root Inc Corp (ROOT) exhibits a P/S ratio of 0.92, which is -9.98% above the industry average. Given its robust revenue growth of 32.40%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Kingstone Companies Inc

Performance Decomposition

Market capitalization of ROOT increased by 108.56% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 3.91 to 19.13.

The secondary factor is the Revenue Growth, contributed 32.40%to the performance.

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

32.40%

289.20M → 382.90M

Revenue Growth

-312.96%

-2.70 → 5.75

Margin Expansion

389.12%

3.91 → 19.13

P/E Change

108.56%