VRM Valuation

Vroom Inc

Add to Watchlist

Advanced Chart

29.920

0(0.000%)1D

Overview
Forecast
Valuation
Earnings

VRM Relative Valuation

VRM'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, VRM is overvalued; if below, it's undervalued.

Historical Valuation

Vroom Inc (VRM) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.10 is considered Undervalued compared with the five-year average of -5.37. The fair price of Vroom Inc (VRM) is between 35.00 to 59.42 according to relative valuation methord. Compared to the current price of 29.92 USD , Vroom Inc is Undervalued By 14.51%.

Relative Value

Fair Zone

35.00-59.42

Current Price：29.92

14.51%

Undervalued

0.00

Trailing

Forward

-5.14

EV/EBITDA

Vroom Inc. (VRM) has a current EV/EBITDA of -5.14. The 5-year average EV/EBITDA is -9.01. The thresholds are as follows: Strongly Undervalued below -26.01, Undervalued between -26.01 and -17.51, Fairly Valued between -0.51 and -17.51, Overvalued between -0.51 and 7.99, and Strongly Overvalued above 7.99. The current Forward EV/EBITDA of -5.14 falls within the Historic Trend Line -Fairly Valued range.

-4.09

EV/EBIT

Vroom Inc. (VRM) has a current EV/EBIT of -4.09. The 5-year average EV/EBIT is -8.18. The thresholds are as follows: Strongly Undervalued below -25.43, Undervalued between -25.43 and -16.81, Fairly Valued between 0.44 and -16.81, Overvalued between 0.44 and 9.07, and Strongly Overvalued above 9.07. The current Forward EV/EBIT of -4.09 falls within the Historic Trend Line -Fairly Valued range.

0.10

Vroom Inc. (VRM) has a current PS of 0.10. The 5-year average PS is 0.59. The thresholds are as follows: Strongly Undervalued below -1.20, Undervalued between -1.20 and -0.31, Fairly Valued between 1.48 and -0.31, Overvalued between 1.48 and 2.38, and Strongly Overvalued above 2.38. The current Forward PS of 0.10 falls within the Historic Trend Line -Fairly Valued range.

-0.92

P/OCF

Vroom Inc. (VRM) has a current P/OCF of -0.92. The 5-year average P/OCF is 3.54. The thresholds are as follows: Strongly Undervalued below -62.55, Undervalued between -62.55 and -29.51, Fairly Valued between 36.59 and -29.51, Overvalued between 36.59 and 69.64, and Strongly Overvalued above 69.64. The current Forward P/OCF of -0.92 falls within the Historic Trend Line -Fairly Valued range.

-0.47

P/FCF

Vroom Inc. (VRM) has a current P/FCF of -0.47. The 5-year average P/FCF is -3.58. The thresholds are as follows: Strongly Undervalued below -18.70, Undervalued between -18.70 and -11.14, Fairly Valued between 3.98 and -11.14, Overvalued between 3.98 and 11.53, and Strongly Overvalued above 11.53. The current Forward P/FCF of -0.47 falls within the Historic Trend Line -Fairly Valued range.

Vroom Inc (VRM) has a current Price-to-Book (P/B) ratio of 0.88. Compared to its 3-year average P/B ratio of 0.49 , the current P/B ratio is approximately 79.30% higher. Relative to its 5-year average P/B ratio of 1.64, the current P/B ratio is about -46.15% higher. Vroom Inc (VRM) has a Forward Free Cash Flow (FCF) yield of approximately -23.30%. Compared to its 3-year average FCF yield of -914.80%, the current FCF yield is approximately -97.45% lower. Relative to its 5-year average FCF yield of -555.93% , the current FCF yield is about -95.81% lower.

0.88

P/B

Median3y

0.49

Median5y

1.64

-23.30

FCF Yield

Median3y

-914.80

Median5y

-555.93

Competitors Valuation Multiple

The average P/S ratio for VRM's competitors is 0.48, providing a benchmark for relative valuation. Vroom Inc Corp (VRM) exhibits a P/S ratio of 0.10, which is -79.64% above the industry average. Given its robust revenue growth of -16.81%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Brilliant Earth Group Inc

GrabAGun Digital Holdings Inc

Performance Decomposition

Market capitalization of VRM increased by 12.57% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -1.12 to -1.94.

The secondary factor is the Revenue Growth, contributed -16.81%to the performance.

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

-16.81%

42.15M → 35.07M

Revenue Growth

-43.80%

-45.32 → -25.47

Margin Expansion

73.18%

-1.12 → -1.94

P/E Change

12.57%