Rite Aid Valuation

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RAD -- USA Stock  

Downward Rally

What is the value of Rite Aid today? Rite Aid Cash and Equivalents Turnover is expected to decrease significantly based on the last few years of reporting. The past year's Cash and Equivalents Turnover was at 121.31. The current year Free Cash Flow per Share is expected to grow to 6.89, whereas Net Cash Flow or Change in Cash and Cash Equivalents is expected to decline to (36 M). Rite Aid holds a recent Real Value of $16.64 per share. The prevailing price of the company is $16.46. At this time, the company appears to be fairly valued. Our model determines the value of Rite Aid from analyzing the company fundamentals such as operating margin of 1.22 %, shares outstanding of 54.7 M, and return on equity of (53.68) % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support purchasing undervalued entities and exiting overvalued entities since, at some point, asset prices and their ongoing real values will merge together.

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Rite Aid Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Rite Aid's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Fairly Valued
Today
16.46
9th of July 2020
16.64
Real Value
23.40
Upside
Rite Aid is somewhat reliable asset. Calculation of real value of Rite Aid is based on 3 months time horizon. Increasing Rite Aid time horizon generally increases accuracy of value calculation and significantly improves predictive power of the methodology used.
Earnings
Estimates (2)
LowProjected EPSHigh
0.140.510.87
Details
Hype
Prediction
LowEstimated ValueHigh
10.3017.0623.82
Details
3 Analysts
Consensus
LowTarget PriceHigh
17.0017.5018.00
Details

Rite Aid Valuation Drivers Correlation

Many accounts on the financial statements of Rite Aid are highly interrelated and sometimes correlated. Consequently, when conducting Rite Aid's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Rite Aid
Click cells to compare fundamentals   View All Correlations

Rite Aid Market Cap

Rite Aid is rated fifth in market capitalization category among related companies. Market capitalization of Pharmaceutical Retailers industry is at this time estimated at about 110.56 Billion. Rite Aid maintains roughly 941.99 Million in market capitalization contributing less than 1% to equities listed under Pharmaceutical Retailers industry.
Capitalization  Valuation  Total debt  Revenue  Workforce

Rite Aid Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Rite Aid's current stock value. Our valuation model uses many indicators to compare Rite Aid value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Rite Aid competition to find correlations between indicators driving Rite Aid's intrinsic value. More Info.
Rite Aid is rated fifth in beta category among related companies. It is rated fifth in price to sales category among related companies fabricating about  0.05  of Price to Sales per Beta. The ratio of Beta to Price to Sales for Rite Aid is roughly  22.00 . The current year Price to Sales Ratio is expected to grow to 0.29. The current year Price to Book Value is expected to grow to 133.35

About Rite Aid Valuation

The Macroaxis Equity Valuation Mechanism determines the current worth of Rite Aid on a weekly bases. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Rite Aid. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Rite Aid based exclusively on its fundamental and basic technical indicators. By analyzing Rite Aid's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Rite Aid's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Rite Aid. We calculate exposure to Rite Aid's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Rite Aid's related companies.
Last ReportedProjected for 2020
Gross Profit6.8 B6.1 B
Profit Margin(2.06) (2.12) 
Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. Rite Aid Corporation was founded in 1962 and is headquartered in Camp Hill, Pennsylvania. Rite Aid operates under Pharmaceutical Retailers classification in the United States and is traded on BATS Exchange. It employs 29840 people.

Rite Aid Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Rite Aid does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.71
Revenue Growth12.20%
Enterprise Value To Ebitda12.60
Enterprise Value To Revenue0.34

Rite Aid Current Valuation Indicators

Valuation refers to the process of determining the present value of Rite Aid and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Rite Aid we look at many different elements of the entity such as Rite Aid's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Book Value per Share
Enterprise Value over EBIT
Enterprise Value over EBITDA
Price to Book Value
Additionally, take a look at Your Equity Center. Please also try Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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