Vroom Intrinsic Value Calculation – Vroom Raises $50M with ‘At the Market’ Offering Program
December 17, 2023
🌥️Trending News
Vroom ($NASDAQ:VRM), the online marketplace for buying and selling cars, has recently announced an “At the Market” offering program that raises $50 million. VROOM is a publicly traded company on the Nasdaq Global Market, specializing in providing customers with convenient and competitively priced used cars. The company seeks to revolutionize the used car industry by offering a contactless experience for buying and selling pre-owned vehicles, and has seen an increase in demand for its services as customers look for safe and socially distant ways to buy cars. The “At the Market” Offering Program involves offering up to $50 million of the company’s common stock over the course of the program, at prices that will be determined through market forces. The proceeds from this offer will go towards working capital and general corporate purposes, including investments in technology and customer services.
This move reinforces VROOM’s commitment to providing customers with an easy and convenient shopping experience. This new offering program is another step forward for Vroom, and it demonstrates their commitment to providing their customers with the best services possible. It also reflects the increasing demand for their online marketplace, which is set to revolutionize the used car industry.
Stock Price
On Friday, VROOM, a leading e-commerce platform for buying and selling used cars, announced the successful completion of a $50 million “at the market” offering program. On the same day, VROOM’s stock opened at $0.7 and closed at $0.7, a 5.5% increase from their previous closing price. This successful offering program is seen as a major milestone in the company’s growth and expansion.
The funds raised are expected to be used to further invest in their product offerings and customer experience. This offering is expected to further strengthen VROOM’s position in the used car market and provide further opportunities for growth and expansion. Vroom_Raises_50M_with_At_the_Market_Offering_Program”>Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Vroom. More…
| Total Revenues | Net Income | Net Margin |
| 866.63 | -199.45 | -35.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Vroom. More…
| Operations | Investing | Financing |
| -511.59 | 154.5 | 42.21 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Vroom. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.65k | 1.39k | 1.85 |
Key Ratios Snapshot
Some of the financial key ratios for Vroom are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -12.8% | – | -17.7% |
| FCF Margin | ROE | ROA |
| -60.9% | -32.1% | -5.8% |
Analysis – Vroom Intrinsic Value Calculation
At GoodWhale, we have conducted a thorough analysis of the fundamentals of VROOM and have determined that the intrinsic value of each VROOM share is around $3.3, a number that we have calculated based on our proprietary Valuation Line. This indicates that VROOM’s stock is currently undervalued by 79.0%, as it is currently traded at $0.7. We believe that investors should take advantage of this undervaluation and consider investing in VROOM as a long-term strategy. Vroom_Raises_50M_with_At_the_Market_Offering_Program”>More…
Peers
Vroom Inc. is an online retailer of used cars, headquartered in New York City. The company was founded in 2013, and competes with other online used car retailers such as G A Holdings Ltd, Marshall Motor Holdings PLC, and Grand Baoxin Auto Group Ltd.
– G A Holdings Ltd ($SEHK:08126)
A. H. Belo Corporation is a media company that owns and operates newspapers in the United States. The company was founded in 1842 and is headquartered in Dallas, Texas. A. H. Belo operates through two segments: Newspaper and Digital Media. The Newspaper segment publishes The Dallas Morning News, a daily newspaper; and The Providence Journal, a daily newspaper. The Digital Media segment provides digital marketing services, including website design and development, search engine optimization, and social media management; and produces video content, as well as offers digital marketing solutions, such as email marketing, pay-per-click advertising, and display advertising.
– Marshall Motor Holdings PLC ($SEHK:01293)
Grand Baoxin Auto Group Ltd is a Chinese car dealership and manufacturer. The company has a market cap of 1.11 billion as of 2022 and a return on equity of 11.81%. Grand Baoxin Auto Group Ltd is involved in the sales, service, and production of vehicles. The company has over 100 dealerships in China.
Summary
Vroom Inc. has announced a $50 million “at the market” offering program, resulting in an immediate impact on the stock price. This program allows the company to issue common stock directly into the market, allowing them to benefit from the current market conditions. The immediate stock price increase suggests that investors are confident in Vroom’s long-term prospects and view this offering as a positive move.
Investors should take into consideration the potential dilution of earnings that could result from a large offering like this and weigh their decision accordingly. Overall, by taking advantage of favorable market conditions, Vroom appears to be taking strides towards improving its long-term prospects.
