Selectquote Intrinsic Value Calculation – SelectQuote Sees Significant Price Decline on Wednesday
April 28, 2023
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SELECTQUOTE ($NYSE:SLQT): On Wednesday, April 26, SelectQuote Inc. experienced a sharp stock price decline of 27.60%, causing the stock to close at a lower price than the previous day. This negative momentum was driven by buyers who sold off their shares in droves, resulting in the significant price decrease. SelectQuote Inc. is a publicly traded company that provides both online and direct-to-consumer life insurance solutions for individuals, families and small businesses. Despite the recent downturn, SelectQuote Inc. remains a market leader and has seen significant growth in the last five years.
In light of this unexpected price decline, investors should heed advice to “hold on when you’re right.” While it can be tempting to panic and sell off your shares in response to a sudden decrease, investors should maintain a long-term outlook and trust that their investments will eventually yield strong returns. By doing so, they can ensure that their portfolio remains healthy for the long-term.
Stock Price
On Wednesday, SelectQuote Inc. experienced a significant price decline when the stock opened at $1.0 and closed at $1.1, a 12.4% decrease from its previous closing price of $1.0. This downward trend is a concerning sign for the company, as the stock has been steadily declining throughout the past few weeks. It is uncertain what may have caused this sudden drop in price, but investors are advised to keep an eye on SelectQuote Inc. as the situation develops. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Selectquote. SelectQuote_Sees_Significant_Price_Decline_on_Wednesday”>More…
| Total Revenues | Net Income | Net Margin |
| 895.4 | -131.68 | -10.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Selectquote. SelectQuote_Sees_Significant_Price_Decline_on_Wednesday”>More…
| Operations | Investing | Financing |
| -108.15 | -15.98 | -33.13 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Selectquote. SelectQuote_Sees_Significant_Price_Decline_on_Wednesday”>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.3k | 916.15 | 2.14 |
Key Ratios Snapshot
Some of the financial key ratios for Selectquote are shown below. SelectQuote_Sees_Significant_Price_Decline_on_Wednesday”>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 30.5% | 66.7% | -11.5% |
| FCF Margin | ROE | ROA |
| -13.9% | -17.4% | -5.0% |
Analysis – Selectquote Intrinsic Value Calculation
At GoodWhale, we have conducted a thorough analysis of SELECTQUOTE’s wellbeing in order to accurately determine its intrinsic value. With our proprietary Valuation Line, we have identified that the current intrinsic value of SELECTQUOTE stock is around $13.6. Despite this, the current share price of SELECTQUOTE is only $1.1, representing a massive 91.9% undervaluation. This presents a great opportunity to those looking to invest in SELECTQUOTE and benefit from a potentially significant return in the future. SelectQuote_Sees_Significant_Price_Decline_on_Wednesday”>More…
Peers
The company has been in operation for more than 10 years and has a strong presence in the United States. The company offers a wide range of insurance products and services, including life, health, and auto insurance. The company has a strong customer base and a large number of satisfied customers. The company’s competitors include Transilvania Broker De Asigurare, Sabre Insurance Group PLC, and Fanhua Inc.
– Transilvania Broker De Asigurare ($LTS:0TCR)
Sabre Insurance Group PLC is a United Kingdom-based holding company engaged in the provision of general insurance products. The Company offers a range of personal and commercial insurance products through a network of intermediaries, including brokers and price comparison websites. It operates through three segments: Motor, Household and Commercial.
– Sabre Insurance Group PLC ($LSE:SBRE)
Founded in 2001, Fanhua Inc. is a leading provider of financial services in China. The company offers a wide range of services including loans, insurance, and investments. As of 2022, Fanhua Inc. had a market capitalization of 272.87 million and a return on equity of 6.21%. The company is headquartered in Guangzhou, China.
Summary
SelectQuote Inc. is a stock that has shown significant volatility in the past few months. On April 26th, the stock price dropped by 27.60%, a major decline compared to the previous day’s close.
However, the stock price moved up the same day, suggesting that investors were still optimistic about the company’s future prospects. As a result, investors should be aware of the risks and potential rewards associated with SelectQuote Inc, and use proper risk management when investing. Fundamental analysis of the company’s financial statements and other relevant factors should be conducted to undertake an informed assessment of the stock’s potential.
Additionally, due diligence should be done to ensure that the company is investing in quality securities and employing sound strategies. With proper research, investors can make informed decisions when it comes to investing in SelectQuote Inc.
