[1] What Does HOOD Valuation Of $34 Tell You?
It tells you that $34 is the fair price per share that a buyer should pay for HOOD stockThis price is based on relative valuation technique which applies appropriate multiples such as P/S or P/E to expected 1 year sales or earnings forecastMultiples are derived from market wisdom: how HOOD has been valued in the past, and how the market values its peersThis is not a price target with a specied time frame
[2] What Does -27.7% Downside For Robinhood Markets Suggest?
It suggests that if you short HOOD stock today, there is potential return of 27.7% in store
IF the market eventually agrees with our assessmentIt is not a sell recommendation, but indicative of in which direction a buyer, who believes $34 to be fair price, expects the stock to moveUpside or downside < 5% do not hold much significance because of margin of error in modelling, daily stock price fluctuations, and uncertainty around time frame
[3] Are There Other Similar Stocks Where I Can Get Better Returns?
HOOD peers with greater as well as positive upside include: SCHW: 13%Here is a list of 5 biggest companies (by revenue) with valuation upside > 25%
Cigna: 31% | Walgreens Boots Alliance: 26% | General Motors: 27% | Valero Energy: 30% | Phillips 66: 101%
[4] How Does Valuation Upside For HOOD Change With Different Multiples?
Current valuation upside is based on Price To Sales Ratio (P/S) of 15.6 and Revenue Per Share (RPS) of 2.18
Other interesting scenarios you may want to consider
Valuation Upside @ Peer Average: -62%
Valuation Upside @ Industry Average: -100%
Valuation Upside @ Current Multiple: -100%