Vroom, Inc.

VRM

Consumer CyclicalAuto - DealershipsNASDAQ

$12.45

Market Cap: $64.82M

Vroom, Inc. (VRM) Valuation Summary

Updated May 11, 2026 18:30

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$1,163.43 – $35,407.58	$8,463.56	+67880.4%
Revenue DCF 10Y	—	N/A	—
▸ Trading Multiples
EV/Revenue	-$140.05 – -$127.61	$16.61	+33.4%

Valuation History

DCF Analysis

Vroom, Inc. (VRM) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$8,463.56

Market Price

$12.45

Upside / Downside

+67880.4%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from 0.2% to a target of 7.7% over 5 years, discounted at a WACC of 7.5%, Vroom, Inc. (VRM) has an intrinsic value of $8,463.56 per share (range: $1,163.43 – $35,407.58).

Key Assumptions

Current Operating Margin

0.2%

Target Operating Margin

7.7%

WACC

7.5%

Terminal Growth Rate

4.0%

Historical CapEx/Rev

7.8%

Target CapEx/Rev

76.9%

D&A/Revenue

51.2%

Tax Rate

21.0%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	4,256	3690.7%	1.7%	71	56	2,181	(919)	62,524	-61,206	-59,031
2027	3,830	-10.0%	3.2%	122	96	1,963	(1,356)	-6,254	6,956	6,241
2028	3,447	-10.0%	4.7%	162	128	1,766	(1,697)	-5,628	5,826	4,862
2029	3,103	-10.0%	6.2%	193	152	1,590	(1,956)	-5,065	4,851	3,766
2030	2,792	-10.0%	7.7%	216	170	1,431	(2,146)	-4,559	4,014	2,898

Enterprise Value Bridge

Sum of PV(FCFF)-41,264

Terminal Value (Gordon Growth at 4.0%)119,153

PV of Terminal Value86,041

Enterprise Value44,777

(–) Net Debt769

Equity Value44,007

(÷) Shares Outstanding5

Fair Value per Share$8,463.56

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.7%	4.7%	7.7%	10.7%	13.7%
5.5%	$32489	$33218	$33948	$34678	$35408
6.5%	$15232	$15667	$16102	$16537	$16972
7.5%	$7846	$8155	$8464	$8772	$9081
8.5%	$3755	$3994	$4232	$4471	$4709
9.5%	$1163	$1357	$1551	$1745	$1939

Current price: $12.45. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 1469.4% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$16.61

Market Price

$12.45

Upside / Downside

+33.4%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Vroom, Inc. (VRM) has a fair value of $16.61 based on 6 comparable companies in the Auto - Dealerships industry.

EV/Revenue Valuation — Auto - Dealerships

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Vroom, Inc.VRM	65	7.4x	0.4x
Playboy, Inc.PLBY	156	2.6x	4.0x
China Automotive Systems, Inc.CAAS	136	0.3x	0.5x
Traeger, Inc.COOK	120	0.9x	1.1x
Clarus CorporationCLAR	116	0.4x	0.3x
Kewaunee Scientific CorporationKEQU	106	0.6x	0.1x
Massimo Group Common StockMAMO	41	0.6x	—
Industry Median		0.6x	0.5x
(*) Revenue		112	2,008
= Enterprise Value		66	1,644
(-) Net Debt		769	769
Equity Value		-703	875
(/) Outstanding shares		5	5
Fair Price		$-135	$168

Selected Fair Value (avg of trailing + forward)

$16.61

+33.4%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$1,163.43 – $35,407.58

$8,463.56

+67880.4%

Revenue DCF 10Y

—

N/A

—

▸ Trading Multiples

EV/Revenue

-$140.05 – -$127.61

$16.61

+33.4%

DCF Analysis

Vroom, Inc. (VRM) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$8,463.56

Market Price

$12.45

Upside / Downside

+67880.4%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

0.2%

Target Operating Margin

7.7%

WACC

7.5%

Terminal Growth Rate

4.0%

Historical CapEx/Rev

7.8%

Target CapEx/Rev

76.9%

D&A/Revenue

51.2%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	4,256	3690.7%	1.7%	71	56	2,181	(919)	62,524	-61,206	-59,031
2027	3,830	-10.0%	3.2%	122	96	1,963	(1,356)	-6,254	6,956	6,241
2028	3,447	-10.0%	4.7%	162	128	1,766	(1,697)	-5,628	5,826	4,862
2029	3,103	-10.0%	6.2%	193	152	1,590	(1,956)	-5,065	4,851	3,766
2030	2,792	-10.0%	7.7%	216	170	1,431	(2,146)	-4,559	4,014	2,898

Enterprise Value Bridge

Sum of PV(FCFF)-41,264

Terminal Value (Gordon Growth at 4.0%)119,153

PV of Terminal Value86,041

Enterprise Value44,777

(–) Net Debt769

Equity Value44,007

(÷) Shares Outstanding5

Fair Value per Share$8,463.56

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.7%	4.7%	7.7%	10.7%	13.7%
5.5%	$32489	$33218	$33948	$34678	$35408
6.5%	$15232	$15667	$16102	$16537	$16972
7.5%	$7846	$8155	$8464	$8772	$9081
8.5%	$3755	$3994	$4232	$4471	$4709
9.5%	$1163	$1357	$1551	$1745	$1939

Current price: $12.45. Green = undervalued, Red = overvalued.

Working Capital Assumption

Trading Multiples

Fair Value

$16.61

Market Price

$12.45

Upside / Downside

+33.4%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Vroom, Inc. (VRM) has a fair value of $16.61 based on 6 comparable companies in the Auto - Dealerships industry.

EV/Revenue Valuation — Auto - Dealerships

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Vroom, Inc.VRM	65	7.4x	0.4x
Playboy, Inc.PLBY	156	2.6x	4.0x
China Automotive Systems, Inc.CAAS	136	0.3x	0.5x
Traeger, Inc.COOK	120	0.9x	1.1x
Clarus CorporationCLAR	116	0.4x	0.3x
Kewaunee Scientific CorporationKEQU	106	0.6x	0.1x
Massimo Group Common StockMAMO	41	0.6x	—
Industry Median		0.6x	0.5x
(*) Revenue		112	2,008
= Enterprise Value		66	1,644
(-) Net Debt		769	769
Equity Value		-703	875
(/) Outstanding shares		5	5
Fair Price		$-135	$168

Selected Fair Value (avg of trailing + forward)

$16.61

+33.4%