Credit Fair Value
CA
The fair market value of CACC stock is 196.23 USD. Relative to the market price of 461.19 USD Credit is overvalued by 57.5%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Credit Valuation
Current CACC share ticker price is 461.19 USD.
The fair value level of 196.23 USD can be considered as an effective entry point for long-term investors to start investing in CACC stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 57% higher its fair value
Current price is 72% higher its minimum value
Current price is 16% higher its maximum value
Market price:
CACC stock is greatly overvalued
It means the current price may concern as a High Risk Entry Point
Credit Acceptance Corp Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
25.22
2
Median P/E over 5 years
12.83
3
Minimum P/E over 5 years
8.3
4
Earning per share (last 12 months)
15.29 USD
Maximum value
1
x
4
=
385.7 USD
Fair value
2
x
4
=
196.23 USD
Minimum value
3
x
4
=
126.91 USD
Credit Acceptance Corp price metrics
0.92
Annual return (geometric mean)
48.5
Risk (standard deviation) of returns
β
1.49
Beta (volatility compared to market)