iPower Inc. (IPW)
Market price: $2.30
1 valuation method
- EV / Gross Profit: $3.85 to $135.40 (midpoint $58.12)
How each method works
EV / Gross Profit: $3.85 to $135.40 (midpoint $58.12)
Values the business at a peer multiple of gross profit — useful where reported operating costs vary a lot across peers but gross economics are comparable.
- How it’s calculated
- We take last-twelve-month gross profit (revenue minus the direct cost of the goods or services sold), multiply it by the peer range of EV/Gross-Profit multiples, subtract net debt and any minority interests or preferred stock ranking ahead of common shareholders, and divide by shares outstanding.
- Why it fits this industry
- Gross profit sits between revenue and operating earnings: it credits the margin a company's products earn while ignoring overhead and investment choices that legitimately differ across peers.
- Reading this bar
- The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together.
EV / Gross Profit = (1.02/2.43/4.45)× gross_profit 4,039,297 ≈ 4,122,130.15/9,832,537.41/17,963,189.46 (enterprise_value); enterprise_value -> per share: equity (405,117.15/6,115,524.41/14,246,176.46) / 105,215.33 shares [EV bridge: minus net debt 3,764,795, minus minority interest & preferred -47,782]
5 methods not shown
- EV / EBITDA: EBITDA is non-positive — an EBITDA multiple yields no meaningful enterprise value (loss-making at the EBITDA line)
- EV / Revenue: the market prices this company far outside its sector's EV / Revenue range (its own multiple is 0.20 vs a sector band of 1.19–2.21) — a sector-average bar would be misleading here, so it is withheld
- P / E: diluted EPS is non-positive — P/E is not meaningful for a loss-making period
- P / B: the market prices this company far outside its sector's P / B range (its own multiple is 0.01 vs a sector band of 3.83–7.35) — a sector-average bar would be misleading here, so it is withheld
- DCF (FCFF): base unlevered FCF is non-positive (-9,361,581.21) — nothing to discount; a standard FCFF DCF does not apply
Pre-profit company — earnings-based methods not meaningful.
Limited data — fewer than three valuation methods could be formed for this company; showing every method we can stand behind.
Debt is most of what funds this company — its shares are about 6% of its total enterprise value. The enterprise-value bar here (1) value the whole business and then subtract the debt, so a small difference in the business's value becomes a large one per share. That is arithmetic, not a fault in the estimate, but it is why those ranges are wide.