<div id="readability-page-1"><div><p>Newegg Commerce (NEGG) just released its financial projections for the full year ending December 31, 2025. The company is guiding net sales between $1.38 billion and $1.42 billion, with an expected net loss of $10 million to $16 million.</p> <p>See our latest analysis for Newegg Commerce.</p> <p>Newegg Commerce's latest earnings outlook appears to have energized the market, with the share price soaring 40.85% in a single day and notching an impressive 648.49% return year-to-date. Despite this rapid rebound, the one-year total shareholder return stands at 425.77%, suggesting short-term momentum is building on top of a longer-term turnaround story.</p> <p>If Newegg's surge has you scanning for other fast movers, now is a great moment to branch out and discover fast growing stocks with high insider ownership</p> <p>With such explosive gains and fresh guidance in hand, investors now face a pivotal question: Is Newegg Commerce still undervalued, or are the company’s prospects already fully reflected in its current share price?</p> <h2>Price-to-Sales Ratio of 1x: Is it justified?</h2> <p>With Newegg Commerce trading at a price-to-sales (P/S) ratio of 1x and a closing share price of $66.72, the company looks more expensive than its industry peers on this key metric.</p> <p>The price-to-sales ratio measures how much investors are paying for each dollar of revenue generated by the company. In the specialty retail sector, where Newegg operates, this is often used to compare businesses even when earnings are negative or volatile, since it focuses purely on sales performance regardless of current profitability.</p> <p>Right now, Newegg’s P/S ratio outpaces the US Specialty Retail industry average of 0.5x. This implies the market is pricing in superior growth or unique potential relative to its competitors. However, when compared to peer companies with an average P/S of 1.2x, Newegg appears more attractively valued within that group. This potentially reflects mixed expectations for the company’s turnaround efforts and the uncertainty around future earnings. If the market’s assumptions about Newegg’s turnaround prove true, the P/S multiple may find support near peer group levels. Without robust growth, it could move closer to the industry average.</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <p><strong>Result: Price-to-Sales of 1x (OVERVALUED)</strong></p> <p>However, ongoing net losses and uncertain revenue growth remain key risks that could challenge Newegg Commerce’s valuation and future turnaround prospects.</p> <p>Find out about the key risks to this Newegg Commerce narrative.</p> <h2>Another View: Discounted Cash Flow Perspective</h2> <p>While the price-to-sales ratio suggests Newegg Commerce may be overvalued, our DCF model provides an even starker comparison. With shares trading at $66.72, the DCF approach calculates a fair value of $4.06, implying the stock could be significantly overvalued based on future cash flow projections. Which perspective will prove more accurate as the story unfolds?</p> <p>Look into how the SWS DCF model arrives at its fair value.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/dd41c78d-d990-4320-8ad7-836c81eb18ac/chart/dcf?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/dd41c78d-d990-4320-8ad7-836c81eb18ac/chart/dcf"/><figcaption>NEGG Discounted Cash Flow as at Oct 2025</figcaption></figure><p>Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Newegg Commerce for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.</p> <h2> Build Your Own Newegg Commerce Narrative</h2> <p>If you want to dive deeper or have your own insights, you can examine the numbers and craft a personal narrative in just a few minutes. Do it your way</p> <p>A great starting point for your Newegg Commerce research is our analysis highlighting 2 important warning signs that could impact your investment decision.</p> <h2>Looking for More Investment Ideas?</h2> <p>Unlock your next investment win by checking out hidden gems, state-of-the-art disruptors, and reliable dividend payers with the Simply Wall Street Screener. Take the lead with these handpicked opportunities before others catch on.</p> <ul> <li>Seize the chance to catch undervalued stocks ready for a potential rebound by using these 878 undervalued stocks based on cash flows.</li> <li>Tap into the growth wave as artificial intelligence transforms entire industries. Start with these 27 AI penny stocks.</li> <li>Accelerate your portfolio’s income by targeting companies with impressive yields through these 17 dividend stocks with yields &gt; 3%.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p></div></div>

NEGG

<p>Newegg Commerce (NEGG) has released its financial projections for 2025, estimating net sales of $1.38 billion to $1.42 billion and a net loss of $10 million to $16 million. Following this announcement, the stock surged 40.85% in one day, with a year-to-date return of 648.49%. However, its price-to-sales ratio of 1x suggests it may be overvalued compared to industry peers. A discounted cash flow analysis indicates a fair value of $4.06 per share, raising concerns about its valuation amidst ongoing losses and uncertain growth.</p>

Newegg (NEGG): Assessing Valuation After Fresh 2025 Financial Projections Spark Investor Excitement