Date: Oct 12, 2018
In trying to determine the current valuation of Western Uranium & Vanadium Corp. (CNSX:WUC) shares, we note that the Book to Market ratio of the shares stands at 0.279816. It’s commonly accepted that a Book to Market ratio greater than one indicates that the shares might be undervalued. The book to market ratio has some limitations in certain industries however where intangible assets (such as knowledge) often are not represented on a balance sheet. The ratio is calculated by dividing the market price per share by book value per share.
When putting hard earned money at risk, investors will want to look at all the angles in order to make sure that no stone is left unturned when building the stock portfolio. With so many different stocks available to trade, investors may need to figure out a way to make the selection process manageable. Some investors may choose to start with industry research first and eventually filter down to individual stock picks. Others may want to start at the individual stock level and go from there. Whatever the approach the investor chooses, putting in the time and effort might greatly help the long-term performance of the stock portfolio.
Western Uranium & Vanadium Corp. (CNSX:WUC) presently has a current ratio of 0.38. The current ratio, also known as the working capital ratio, is a liquidity ratio that displays the proportion of current assets of a business relative to the current liabilities. The ratio is simply calculated by dividing current liabilities by current assets. The ratio may be used to provide an idea of the ability of a certain company to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the company may be more capable of paying back its obligations.
Return on Assets
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 Western Uranium & Vanadium Corp. (CNSX:WUC) is -0.008340. 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.
Western Uranium & Vanadium Corp. (CNSX:WUC)’s Leverage Ratio was recently noted as 0.021991. This ratio is calculated by dividing total debt by total assets plus total assets previous year, divided by two. The leverage of a company is relative to the amount of debt on the balance sheet. This ratio is often viewed as one measure of the financial health of a firm.
ERP5 Rank
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 Western Uranium & Vanadium Corp. (CNSX:WUC) is 17913. The lower the ERP5 rank, the more undervalued a company is thought to be.
