iRobot (IRBT): Valuation Check After Chapter 11 Filing and Nasdaq Delisting Decision

iRobot (IRBT) just hit two major turning points at once: a voluntary Chapter 11 filing and a Nasdaq delisting notice, effectively signaling the endgame for its public equity story.

See our latest analysis for iRobot.

Those Chapter 11 and delisting headlines basically crystallise what the share price had been hinting at for a while. A 1 year total shareholder return of around minus 91 percent and multi year losses show that momentum has not just faded; it has largely evaporated, as equity holders now sit behind creditors and a potential change of control.

If you are reassessing your exposure after iRobot's collapse, this could be a good time to explore high growth tech and AI stocks that are still building real momentum rather than fighting for survival.

With the stock now trading below a dollar and a bankruptcy driven takeover on the table, is this a distressed bargain for speculative buyers, or simply a market that already sees no realistic path to future growth?

Price to Sales of 0x: Is it justified?

At a last close of $0.76, iRobot screens as deeply distressed, yet its current price to sales ratio of 0x suggests the market is almost ignoring its remaining revenue base.

The price to sales ratio compares the company’s market value to its annual revenue. This can be a useful yardstick when earnings are negative or highly volatile, as is the case for iRobot. For a consumer durables business still generating hundreds of millions in sales, a 0x multiple implies investors are discounting the likelihood that those revenues can translate into sustainable cash flows for equity holders.

Even so, iRobot is described as good value versus both its direct peers at 0.4x and the wider US consumer durables industry at 0.6x. The gap underlines how severely sentiment has swung against the stock, and it highlights how dramatically the multiple could re rate if the business emerges from restructuring with a credible path back to profitability.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price to Sales of 0x (UNDERVALUED)

However, investors still face major risks, including uncertain Chapter 11 outcomes and the possibility that ongoing losses may erode any residual equity value.

Find out about the key risks to this iRobot narrative.

Build Your Own iRobot Narrative

If you see the story differently or prefer to interrogate the numbers yourself, you can build a fresh narrative in minutes: Do it your way.

A great starting point for your iRobot research is our analysis highlighting 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. 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. 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.

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