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 Undervalued zone, suggesting that its current forward PS ratio of 0.84 is considered Undervalued compared with the five-year average of 1.92. The fair price of Root Inc (ROOT) is between 87.66 to 139.44 according to relative valuation methord. Compared to the current price of 83.63 USD , Root Inc is Undervalued By 4.6%.
Relative Value
Fair Zone
87.66-139.44
Current Price：83.63
4.6%
Undervalued
55.19
PE
1Y
3Y
5Y
Trailing
Forward
8.73
EV/EBITDA
Root Inc. (ROOT) has a current EV/EBITDA of 8.73. The 5-year average EV/EBITDA is 6.09. The thresholds are as follows: Strongly Undervalued below -15.16, Undervalued between -15.16 and -4.54, Fairly Valued between 16.71 and -4.54, Overvalued between 16.71 and 27.34, and Strongly Overvalued above 27.34. The current Forward EV/EBITDA of 8.73 falls within the Historic Trend Line -Fairly Valued range.
21.36
EV/EBIT
Root Inc. (ROOT) has a current EV/EBIT of 21.36. The 5-year average EV/EBIT is 24.65. The thresholds are as follows: Strongly Undervalued below -98.71, Undervalued between -98.71 and -37.03, Fairly Valued between 86.33 and -37.03, Overvalued between 86.33 and 148.01, and Strongly Overvalued above 148.01. The current Forward EV/EBIT of 21.36 falls within the Historic Trend Line -Fairly Valued range.
0.84
PS
Root Inc. (ROOT) has a current PS of 0.84. The 5-year average PS is 2.54. The thresholds are as follows: Strongly Undervalued below -5.29, Undervalued between -5.29 and -1.37, Fairly Valued between 6.46 and -1.37, Overvalued between 6.46 and 10.37, and Strongly Overvalued above 10.37. The current Forward PS of 0.84 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 -1.75. The thresholds are as follows: Strongly Undervalued below -7.64, Undervalued between -7.64 and -4.70, Fairly Valued between 1.19 and -4.70, Overvalued between 1.19 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.
9.24
P/FCF
Root Inc. (ROOT) has a current P/FCF of 9.24. The 5-year average P/FCF is 1.23. The thresholds are as follows: Strongly Undervalued below -12.27, Undervalued between -12.27 and -5.52, Fairly Valued between 7.99 and -5.52, Overvalued between 7.99 and 14.74, and Strongly Overvalued above 14.74. The current Forward P/FCF of 9.24 falls within the Overvalued range.
Root Inc (ROOT) has a current Price-to-Book (P/B) ratio of 4.95. Compared to its 3-year average P/B ratio of 4.01 , the current P/B ratio is approximately 23.31% higher. Relative to its 5-year average P/B ratio of 3.06, the current P/B ratio is about 61.78% higher. Root Inc (ROOT) has a Forward Free Cash Flow (FCF) yield of approximately 15.67%. Compared to its 3-year average FCF yield of -71.60%, the current FCF yield is approximately -121.89% lower. Relative to its 5-year average FCF yield of -72.21% , the current FCF yield is about -121.70% lower.
4.95
P/B
Median3y
4.01
Median5y
3.06
15.67
FCF Yield
Median3y
-71.60
Median5y
-72.21
Competitors Valuation Multiple
The average P/S ratio for ROOT's competitors is 0.93, providing a benchmark for relative valuation. Root Inc Corp (ROOT) exhibits a P/S ratio of 0.84, which is -8.72% 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 11.61% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 12.08 to 24.24.
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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