Date: Oct 12, 2018
Checking in on some valuation rankings, Australian Vanadium Limited (ASX:AVL) has a Value Composite score of 82. 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 87.
Investors might be trying to step up their game in order to play a more active role with their investments. Investors who keep a close watch on what is happening with their money may be putting themselves in a good spot to attain financial success in the markets. Being knowledgeable and comfortable about investments may be a great way to be certain that the hard earned money is working for the individual. Wise investors typically have a detailed plan that entails realistic expectations about profits in the stock market. There will always be risks dealing with the equity market, but hoping to get lucky may lead to severe losses and other pitfalls down the road. Everyone may have a different risk threshold when it comes to investing. It may be highly important to evaluate one’s own overall financial situation before going full throttle into the markets.
In taking a look at some other notable technicals, Australian Vanadium Limited (ASX:AVL)’s ROIC is -0.130239. The ROIC 5 year average is -0.288888 and the ROIC Quality ratio is -1.278543. 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.
We also note that Australian Vanadium Limited (ASX:AVL) has a Shareholder Yield of -0.323581 and a Shareholder Yield (Mebane Faber) of -0.18445. 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.
