Velocity Financial Valuation
| VEL Stock | USD 17.12 0.73 4.09% |
At this time, the company appears to be undervalued. Velocity Financial Llc has a current Real Value of $17.88 per share. The regular price of the company is $17.12. Our model measures the value of Velocity Financial Llc from inspecting the company fundamentals such as Operating Margin of 0.39 %, shares outstanding of 36.48 M, and Return On Equity of 0.14 as well as reviewing its technical indicators and probability of bankruptcy.
Undervalued
Today
Please note that Velocity Financial's price fluctuation is very steady at this time. Calculation of the real value of Velocity Financial Llc is based on 3 months time horizon. Increasing Velocity Financial's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Velocity stock is determined by what a typical buyer is willing to pay for full or partial control of Velocity Financial Llc. Since Velocity Financial is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Velocity Stock. However, Velocity Financial's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 17.12 | Real 17.88 | Hype 17.12 | Naive 17.4 |
The intrinsic value of Velocity Financial's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Velocity Financial's stock price.
Estimating the potential upside or downside of Velocity Financial Llc helps investors to forecast how Velocity stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Velocity Financial more accurately as focusing exclusively on Velocity Financial's fundamentals will not take into account other important factors: Velocity Financial Total Value Analysis
Velocity Financial Llc is at this time forecasted to have company total value of 5.8 B with market capitalization of 624.55 M, debt of 4.86 B, and cash on hands of 45.25 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Velocity Financial fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
5.8 B | 624.55 M | 4.86 B | 45.25 M |
Velocity Financial Investor Information
About 93.0% of the company outstanding shares are owned by institutional investors. The company has Price to Book (P/B) ratio of 1.11. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. Velocity Financial Llc had not issued any dividends in recent years. Velocity Financial Llc is not in a good financial situation at the present time. It has a very high likelihood of going through financial trouble in June.Velocity Financial Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Velocity Financial has an asset utilization ratio of 3.83 percent. This suggests that the Company is making $0.0383 for each dollar of assets. An increasing asset utilization means that Velocity Financial Llc is more efficient with each dollar of assets it utilizes for everyday operations.Velocity Financial Ownership Allocation
Velocity Financial Llc shows a total of 36.48 Million outstanding shares. The majority of Velocity Financial Llc outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Velocity Financial to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Velocity Financial Llc. Please pay attention to any change in the institutional holdings of Velocity Financial Llc as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.Velocity Financial Profitability Analysis
The company reported the last year's revenue of 211.74 M. Total Income to common stockholders was 68.47 M with profit before taxes, overhead, and interest of 143.08 M.About Velocity Financial Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Velocity Financial Llc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Velocity Financial Llc based exclusively on its fundamental and basic technical indicators. By analyzing Velocity Financial's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Velocity Financial's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Velocity Financial. We calculate exposure to Velocity Financial's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Velocity Financial's related companies.Velocity Financial, Inc. operates as a real estate finance company in the United States. Velocity Financial, Inc. was founded in 2004 and is headquartered in Westlake Village, California. Velocity Financial operates under Mortgage Finance classification in the United States and is traded on New York Stock Exchange. It employs 215 people.
Velocity Financial Growth Indicators
Investing in growth stocks can be very risky. If the company such as Velocity Financial 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.
| Common Stock Shares Outstanding | 35.8 M | |
| Quarterly Earnings Growth Y O Y | 0.048 |
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Velocity Financial Llc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Is Banking space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Velocity Financial. If investors know Velocity will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Velocity Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Velocity Financial Llc is measured differently than its book value, which is the value of Velocity that is recorded on the company's balance sheet. Investors also form their own opinion of Velocity Financial's value that differs from its market value or its book value, called intrinsic value, which is Velocity Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Velocity Financial's market value can be influenced by many factors that don't directly affect Velocity Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Velocity Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Velocity Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Velocity Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.