Sally Valuation

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SBH -- USA Stock  

Report: 29th of July 2020  

Do you want to know what the current value of Sally Beauty Holdings is today? Sally Beauty Enterprise Value over EBIT is most likely to slightly decrease in the upcoming years. The last year's value of Enterprise Value over EBIT was reported at 11.50. The current Enterprise Value over EBITDA is estimated to increase to 11.19, while Free Cash Flow is estimated to decrease to roughly 166.7 M. Sally Beauty Holdings has a current Real Value of $13.28 per share. The regular price of the company is $12.51. At this time, the company appears to be undervalued. Our model measures the value of Sally Beauty Holdings from inspecting the company fundamentals such as operating margin of 10.04 %, return on equity of 23.50 %, and shares outstanding of 112.87 M as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend locking in undervalued stocks and disposing overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.

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Sally Beauty 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 Sally Beauty's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today
12.51
12th of July 2020
13.28
Real Value
18.33
Upside
Sally Beauty is somewhat reliable asset. Calculation of real value of Sally Beauty Holdings is based on 3 months time horizon. Increasing Sally Beauty Holdings time horizon generally increases accuracy of value calculation and significantly improves predictive power of the methodology used.
Earnings
Estimates (8)
LowProjected EPSHigh
0.661.191.79
Details
Hype
Prediction
LowEstimated ValueHigh
7.3912.4417.49
Details
Naive
Forecast
LowNext ValueHigh
9.6314.6719.72
Details
9 Analysts
Consensus
LowTarget PriceHigh
9.0014.4419.00
Details

Sally Valuation Drivers Correlation

Many accounts on the financial statements of Sally Beauty Holdings are highly interrelated and sometimes correlated. Consequently, when conducting Sally'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 Sally
Click cells to compare fundamentals   View All Correlations

Sally Market Cap

Sally Beauty Holdings is rated below average in market capitalization category among related companies. Market capitalization of Specialty Retail industry is at this time estimated at about 109.76 Billion. Sally Beauty claims roughly 1.41 Billion in market capitalization contributing just under 2% to equities listed under Specialty Retail industry.
Capitalization  Total debt  Workforce  Revenue  Valuation

Sally Beauty Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Sally Beauty's current stock value. Our valuation model uses many indicators to compare Sally Beauty value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Sally Beauty competition to find correlations between indicators driving Sally Beauty's intrinsic value. More Info.
Sally Beauty Holdings is rated below average in price to sales category among related companies. It is rated below average in beta category among related companies totaling about  3.41  of Beta per Price to Sales.

About Sally Beauty Valuation

The Macroaxis Equity Valuation Mechanism determines the current worth of Sally Beauty Holdings on a weekly bases. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Sally Beauty Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Sally Beauty Holdings based exclusively on its fundamental and basic technical indicators. By analyzing Sally Beauty'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 Sally Beauty'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 Sally Beauty. We calculate exposure to Sally Beauty's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Sally Beauty's related companies.
Last ReportedProjected for 2020
Gross Profit1.8 B1.5 B
Profit Margin 6.31  5.96 
Sally Beauty Holdings, Inc. operates as a specialty retailer and distributor of professional beauty supplies. Sally Beauty Holdings, Inc. was founded in 1964 and is headquartered in Denton, Texas. Sally Beauty operates under Specialty Retail classification in the United States and is traded on BATS Exchange. It employs 30050 people.

Sally Beauty 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 Sally Beauty 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 Ratio0.49
Earnings Quarterly Growth-79.70%
Revenue Growth-7.90%
Enterprise Value To Ebitda7.17
Earnings Growth-78.40%
Enterprise Value To Revenue0.93

Sally Beauty Current Valuation Indicators

Valuation refers to the process of determining the present value of Sally Beauty Holdings and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Sally we look at many different elements of the entity such as Sally'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 World Market Map. Please also try Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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