Roots Corporation

OVERVALUEDRROTF · OTC · Consumer Cyclical
RROTF·OTC·Consumer Cyclical
OVERVALUED
Roots Corporation
35.3%downside
MARKET PRICE
$2.85
FAIR PRICE
$1.84
MARGIN
$1.01
UNDERVALUEDFAIROVERVALUED
P/E RATIO
N/A
DIV. YIELD
N/A
ROE
-7.8%
MARKET CAP
$155M
FPI
fairpriceindex.com

FAIR PRICE VALUATION

35.3%downside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

MARKET PRICE

$2.85

FAIR PRICE

$1.84

MARGIN

$1.01

UNDERVALUEDFAIROVERVALUED

P/E Ratio

N/A

Div. Yield

N/A

ROE

-7.8%

Average

Market Cap

$155M

Small-cap

FPI RATING

3.7/ 10

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.

$1.47CONSERVATIVE ENTRY
$1.84FAIR PRICE
$2.85MARKET PRICE

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.

TRY IT YOURSELF

Want to test your own assumptions? Use our free calculators to estimate RROTF's fair value with your own inputs.

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FAQ

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.