Roots Corporation
FAIR PRICE VALUATION
Updated daily
Model: DCF 50% · Relative 30% · Consensus 20%
MARKET PRICE
$2.85
FAIR PRICE
$1.84
MARGIN
$1.01
P/E Ratio
N/A
Div. Yield
N/A
ROE
-7.8%
Average
Market Cap
$155M
Small-cap
FPI RATING
Attractive valuation, but elevated debt levels and below-average fundamental quality.
Analytical data, not an investment recommendation. Updated daily.
How we calculate this ↗MARGIN OF SAFETY
A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.
SAFETY MARGIN
20%
Below fair value
ENTRY LEVEL
$1.47
Fair price × 0.80
DISTANCE
48.3%
Price to entry level
At the current price of $2.85, RROTF trades 48.3% above the conservative entry level of $1.47. This entry level represents a 20% margin of safety below the calculated fair price of $1.84 — a buffer that accounts for estimation uncertainty in the valuation model.
Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗
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KEY FACTS
CEO
Meghan Roach
COUNTRY
CA
HEADQUARTERS
Toronto
SECTOR
Consumer Cyclical
EXCHANGE
OTC
METHODOLOGY
How we calculate RROTF's fair price
Roots Corporation's fair price of $1.84 is derived from a blended model that combines DCF analysis (50%), relative valuation against Consumer Cyclical peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $2.85, RROTF trades 35.3% above its calculated fair value.
DCF MODEL · 50%
Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting RROTF's risk profile.
RELATIVE · 30%
Comparing RROTF's valuation multiples against Consumer Cyclical peers to determine if the stock is over or undervalued relative to its industry.
ANALYST · 20%
Aggregated analyst price targets for RROTF, weighted by recency and analyst accuracy.
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What is the fair price of RROTF?+
Based on our blended model combining DCF analysis (50%), relative valuation against Consumer Cyclical peers (30%), and analyst consensus (20%), the fair price for Roots Corporation is $1.84. At the current market price of $2.85, RROTF trades 35.3% above its calculated fair value.
Is RROTF overvalued or undervalued?+
Roots Corporation is currently overvalued based on our valuation model. The stock trades at $2.85, which is 35.3% above the fair price of $1.84.
What is the margin of safety for RROTF?+
With a 20% margin of safety applied to the fair price of $1.84, the conservative entry level for RROTF is $1.47. At the current market price of $2.85, the stock trades 48.3% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.
How often is RROTF's fair price updated?+
We update fair price calculations for RROTF daily after market close. The current fair price of $1.84 incorporates the latest market data and sector multiples.
What factors affect RROTF's fair price calculation?+
RROTF's fair price of $1.84 is derived from DCF analysis (50% weight), relative valuation against Consumer Cyclical peers (30% weight), and analyst consensus (20% weight)., ROE of -7.8%.
Is RROTF a good buy right now?+
At $2.85, RROTF trades 35.3% above our fair value estimate of $1.84. The stock is currently overvalued. ROE stands at -7.8% (average). Fair Price Index provides valuation data — always do your own research before investing.
Does RROTF pay dividends?+
RROTF does not currently pay a dividend.
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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.