* Note: Prices are in Million (M) USD.
Description:
NerdWallet, Inc. operates a digital platform that provides consumer-oriented advice on personal finance by connecting individuals and small and medium-sized businesses with providers of financial products. The company is headquartered in San Francisco, California.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $66 M
Debt : $9 M
EBITDA : $31 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Financials
Industry: Internet Content & Information
Based on industry, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 29.95
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $17 M
Average Revenue: $447 M
Revenue Converted To Free Cash FLow(%): 4%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 62.91%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $688 M
Revenue 4 Years Ago (2020-12-31): $245 M
Last 5 Years Average Revenue Growth: 36%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $79 M
Share Count 5 Years Ago (2020-12-31): $66 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.35
Trailing 12-Month Earnings Per Share (EPS): $0.38
Average Earnings Per Share (EPS): $0.37
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 49%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $11
52-Week Low: $8
Threshold Price (15% Above 52-Week Low): $9
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $800 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 1% exposure of Total Portfolio.
Value-Trade has assigned 23 points to above Nerdwallet Inc (NRDS) stock.
Last 3 Years Avg PE (Limited to last 3 years of EPS data) 40, Fair Value PE 25, Industry Based PE is 25 and Growth based PE is 18. Based on these all values average assigned is 27.00.
Value-Trades has assined P/E value 27.00. Since an average (Current Year EPS + Next Year EPS) earning per share is $0.37.
The fair value of Nerdwallet Inc (NRDS) stock should be (27.00 x $0.37) = $9.99
