Here we will take a look into some valuation metrics for MKS Instruments, Inc. NasdaqGS:MKSI shares.
Price-To-Cash-Flow-Ratio is a term that indicates the degree of cash flow valuation of the enterprise in the securities market. It is derived from the P/E – Price Earnings Ratio, in which the profit is replaced by cash flow. Unlike P/E, the ratio isn’t affected by the chosen depreciation methods, making it suitable for geographic comparison. MKS Instruments, Inc. currently has a P/CF ratio of 10.672175.
Doing standard fundamental stock analysis is fairly straightforward. These days, investors have easy access to large amounts of available data. The biggest problem for the average investor may be dedicating the time to actually doing the research. One goal of studying the fundamentals is to establish the true value of a stock compared to how it is currently trading in the marketplace. Many investors believe that identifying quality stocks should be a cornerstone of portfolio construction. Obtaining as much knowledge as possible about a stock can help make the buying decisions a little easier. Some investors may trust other people or products to do the required research, but others may wish to roll up the sleeves and do all the analysis themselves.
Watching some historical volatility numbers on shares of MKS Instruments, Inc. (NasdaqGS:MKSI), we can see that the 12 month volatility is presently 40.462200. The 6 month volatility is 42.513700, and the 3 month is spotted at 49.802700. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.
We can now take a quick look at some historical stock price index data. MKS Instruments, Inc. (NasdaqGS:MKSI) presently has a 10 month price index of 0.57203. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 0.75152, the 24 month is 1.16895, and the 36 month is 2.20015. Narrowing in a bit closer, the 5 month price index is 0.78236, the 3 month is 0.97055, and the 1 month is currently 1.05170.
Looking at some ROIC (Return on Invested Capital) numbers, MKS Instruments, Inc. (NasdaqGS:MKSI)’s ROIC is 0.686466. The ROIC 5 year average is 0.474899 and the ROIC Quality ratio is 2.638849. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits. In terms of EBITDA Yield, MKS Instruments, Inc. (NasdaqGS:MKSI) currently has a value of 0.169562. This value is derived by dividing EBITDA by Enterprise Value.
The Price to Book ratio (Current share price / Book value per share) is a good valuation measure you can use to find undervalued investment ideas. A low Price to Book could indicate that the shares are undervalued in their industry. Generally speaking a P/B ratio under 1 is considered low and is best used in relation to asset-heavy firms. At the time of writing MKS Instruments, Inc. (NasdaqGS:MKSI) has a price to book ratio of 2.117046.
The Leverage Ratio of MKS Instruments, Inc. (NasdaqGS:MKSI) is 0.141481. Leverage ratio is the total debt of a company divided by total assets of the current and past year divided by two. Companies take on debt to finance their day to day operations. The leverage ratio can measure how much of a company’s capital comes from debt. With this ratio, investors can better estimate how well a company will be able to pay their long and short term financial obligations.
Investors might be preparing to do a portfolio evaluation as we move towards the close of the year. There may be plenty of big winners from the first half of the year, but there may also be some underperformers that need to be reviewed. Making sure that the portfolio stays in balance can help prepare the investor for success over the next few quarters. With the stock market still riding high, investors may be wondering how to play the market into the near future. If market momentum starts to shift, investors may need to be ready to make some tougher decisions. Being prepared for any market situation can help the investor cope with rough waters when the time comes.
There are many different tools to determine whether a company is profitable or not. One of the most popular ratios is the “Return on Assets” (aka ROA). This score indicates how profitable a company is relative to its total assets. The Return on Assets for MKS Instruments, Inc. (NasdaqGS:MKSI) is 0.168287. This number is calculated by dividing net income after tax by the company’s total assets. A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.
The Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 of MKS Instruments, Inc. (NasdaqGS:MKSI) is 27. A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company. The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings. Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield. The Value Composite Two of MKS Instruments, Inc. (NasdaqGS:MKSI) is 27.
Investing in the stock market can sometimes draw intense emotion from individual investors. When the market slips into a chaotic state, some investors may let their emotions get the best of them which can lead to impulsive decisions. On the other side of the coin, market chaos may cause certain investors to freeze in a panic. This may mean that the investor becomes shaken to the point that they are unable to make any decisions let alone an educated one. Discipline is a quality shared by many successful traders and investors. Staying committed to the plan, whether short-term or long-term, can help investors make it through those times of extreme market uncertainty.
At the time of writing, MKS Instruments, Inc. (NasdaqGS:MKSI) has a Piotroski F-Score of 7. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.
The Price to book ratio is the current share price of a company divided by the book value per share. The Price to Book ratio for MKS Instruments, Inc. NasdaqGS:MKSI is 2.117046. A lower price to book ratio indicates that the stock might be undervalued. Similarly, Price to cash flow ratio is another helpful ratio in determining a company’s value. The Price to Cash Flow for MKS Instruments, Inc. (NasdaqGS:MKSI) is 10.672175. This ratio is calculated by dividing the market value of a company by cash from operating activities. Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability. The price to earnings ratio for MKS Instruments, Inc. (NasdaqGS:MKSI) is 9.607654. This ratio is found by taking the current share price and dividing by earnings per share.
Keeping an eye on the all the day to day happenings in the stock market can be quite a task. Investors may need to try to focus in on the most important information when attempting to examine stocks to add to the portfolio. As earnings reports continue to roll in, investors may be taking a deeper look at some of the names that they have on their shortlist. Investors may also be taking a look at future estimates and guidance provided by companies in order to get a feel of how the stock price may be affected in the future. With the equity market still trading at super high levels, investors may be wondering how much higher some stocks in the portfolio can go. Maybe there are a few winners that look like they have peaked, and investors may have to decide whether to cash in or hold out for more gains. Maybe there are a few losers that have been underperforming and need to be cut loose.
In order to determine if a company is fairly valued, we can look at a number of different ratios and metrics. First off we’ll take a look at the Price to Cash Flow ratio of Grand Canyon Education, Inc. (NasdaqGS:LOPE). The firm currently has a P/CF ratio of 34.405742.
This is the current Price divided by Cash Flow Per Share for the trailing twelve months. Cash Flow is defined as Income After Taxes minus Preferred Dividends and General Partner Distributions plus Depreciation, Depletion and Amortization.
Investing in the stock market can sometimes be a wild ride. Without the proper planning and research, investors may quickly find themselves on the outside looking in. Doing the research and studying the market can be helpful, but creating a trading or investing plan may be the most important part of the process. When the back testing and practice is completed, the real challenge awaits. The practice and preparation can be very helpful for understanding the market, but when real money gets put on the line, it can be a whole different ballgame. The more successful traders and investors are the ones who are able to stay focused and disciplined even throughout turbulent market situations.
The Return on Invested Capital (aka ROIC) for Grand Canyon Education, Inc. (NasdaqGS:LOPE) is 0.265401. The Return on Invested Capital is a ratio that determines whether a company is profitable or not. It tells investors how well a company is turning their capital into profits. The ROIC is calculated by dividing the net operating profit (or EBIT) by the employed capital. The employed capital is calculated by subrating current liabilities from total assets. Similarly, the Return on Invested Capital Quality ratio is a tool in evaluating the quality of a company’s ROIC over the course of five years. The ROIC Quality of Grand Canyon Education, Inc. (NasdaqGS:LOPE) is 6.176983. This is calculated by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC. The ROIC 5 year average is calculated using the five year average EBIT, five year average (net working capital and net fixed assets). The ROIC 5 year average of Grand Canyon Education, Inc. (NasdaqGS:LOPE) is 0.290054.
Grand Canyon Education, Inc. (NasdaqGS:LOPE) has a Price to Book ratio of 3.974668. This ratio is calculated by dividing the current share price by the book value per share. Investors may use Price to Book to display how the market portrays the value of a stock. Checking in on some other ratios, the company has a Price to Cash Flow ratio of 34.405742, and a current Price to Earnings ratio of 20.405328. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.
After a recent scan, we can see that Grand Canyon Education, Inc. (NasdaqGS:LOPE) has a Shareholder Yield of -0.004245 and a Shareholder Yield (Mebane Faber) of 0.00120. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.
The EBITDA Yield is a great way to determine a company’s profitability. This number is calculated by dividing a company’s earnings before interest, taxes, depreciation and amortization by the company’s enterprise value. Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The EBITDA Yield for Grand Canyon Education, Inc. (NasdaqGS:LOPE) is 0.074341.
There are many different tools to determine whether a company is profitable or not. One of the most popular ratios is the “Return on Assets” (aka ROA). This score indicates how profitable a company is relative to its total assets. The Return on Assets for Grand Canyon Education, Inc. (NasdaqGS:LOPE) is 0.171765. This number is calculated by dividing net income after tax by the company’s total assets. A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.
The Gross Margin Score is calculated by looking at the Gross Margin and the overall stability of the company over the course of 8 years. The score is a number between one and one hundred (1 being best and 100 being the worst). The Gross Margin Score of Grand Canyon Education, Inc. (NasdaqGS:LOPE) is 20.00000. The more stable the company, the lower the score. If a company is less stable over the course of time, they will have a higher score.
The C-Score is a system developed by James Montier that helps determine whether a company is involved in falsifying their financial statements. The C-Score is calculated by a variety of items, including a growing difference in net income verse cash flow, increasing days outstanding, growing days sales of inventory, increasing assets to sales, declines in depreciation, and high total asset growth. The C-Score of Grand Canyon Education, Inc. (NasdaqGS:LOPE) is 1.00000. The score ranges on a scale of -1 to 6. If the score is -1, then there is not enough information to determine the C-Score. If the number is at zero (0) then there is no evidence of fraudulent book cooking, whereas a number of 6 indicates a high likelihood of fraudulent activity. The C-Score assists investors in assessing the likelihood of a company cheating in the books.
The ERP5 Rank is an investment tool that analysts use to discover undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of Grand Canyon Education, Inc. (NasdaqGS:LOPE) is 5499. The lower the ERP5 rank, the more undervalued a company is thought to be.
At the time of writing, Grand Canyon Education, Inc. (NasdaqGS:LOPE) has a Piotroski F-Score of 6. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.
Checking in on some valuation rankings, Grand Canyon Education, Inc. (NasdaqGS:LOPE) has a Value Composite score of 58. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 61.
As many investors probably already know, there is no one way to select winning stocks. There are plenty of different theories and ideas out there, and it may become overwhelming to look at all of them. Individual investors who manage their own money may have to dedicate an ample amount of time to find a strategy that works for them. Understanding portfolio diversification, personal risk tolerance, and time horizon may be a good place for the investor to start. Because there is no guarantee that past performance will indicate future results, investors may have to be willing to come at the market from a few different angles.
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