In trying to determine the current valuation of Fiat Chrysler Automobiles N.V. (BIT:FCA) shares, we note that the Book to Market ratio of the shares stands at 1.565469. 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.
Investors might be looking at portfolio performance for the year and celebrating some big winners. Knowing the proper time to sell big winners can be just as important as knowing when to trim losses and cut out the losers. Investors may have become attached to a certain winning stock that nobody else seemed to notice. Holding on to a winner based on some type of emotion may end up hurting the portfolio down the line. Periodically reviewing the portfolio and tweaking the balance may be necessary to help maintain profits over the next year. Maybe there are some new names that seem poised to make a jump. Taking some profits from previous winners might help provide a boost of confidence to help the investor pull off the next big trade.
Fiat Chrysler Automobiles N.V. (BIT:FCA) presently has a current ratio of 0.81. 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 Fiat Chrysler Automobiles N.V. (BIT:FCA) is 0.071421. 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.
Fiat Chrysler Automobiles N.V. (BIT:FCA)’s Leverage Ratio was recently noted as 0.150718. 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.
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 Fiat Chrysler Automobiles N.V. (BIT:FCA) is 1263. The lower the ERP5 rank, the more undervalued a company is thought to be.
FCF Yield 5yr Avg
The FCF Yield 5yr Average is calculated by taking the five year average free cash flow of a company, and dividing it by the current 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 average FCF of a company is determined by looking at the cash generated by operations of the company. The Free Cash Flow Yield 5 Year Average of Fiat Chrysler Automobiles N.V. (BIT:FCA) is 0.104363.
Ever wonder how investors predict positive share price momentum? The Cross SMA 50/200, also known as the “Golden Cross” is the fifty day moving average divided by the two hundred day moving average. The SMA 50/200 for Fiat Chrysler Automobiles N.V. (BIT:FCA) is currently 0.92573. If the Golden Cross is greater than 1, then the 50 day moving average is above the 200 day moving average – indicating a positive share price momentum. If the Golden Cross is less than 1, then the 50 day moving average is below the 200 day moving average, indicating that the price might drop.
The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price. The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital. The MF Rank of Fiat Chrysler Automobiles N.V. (BIT:FCA) is 2471. A company with a low rank is considered a good company to invest in. The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.
Stock volatility is a percentage that indicates whether a stock is a desirable purchase. Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year. The Volatility 12m of Fiat Chrysler Automobiles N.V. (BIT:FCA) is 33.073700. This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized. The lower the number, a company is thought to have low volatility. The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months. The Volatility 3m of Fiat Chrysler Automobiles N.V. (BIT:FCA) is 36.952800. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 32.892400.
For any technician, the trend is a major aspect of stock trading. The trend is the dominant movement in direction of a stock’s price. When discussing the trend in terms of stock price, the assumption is that the trend is expected to continue over a certain period of time. Obviously there is no guarantee that a defined trend will continue, but technical analysts will scour the charts looking for signs of a developed trend to help make the best possible decisions. Seasoned chart watchers are typically able to spot if a trend is up, down, or sideways. Learning how to trade the trend is another part of the process that traders may spend years perfecting.
After a recent scan, we can see that Fiat Chrysler Automobiles N.V. (BIT:FCA) has a Shareholder Yield of 0.046657 and a Shareholder Yield (Mebane Faber) of 0.12657. 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.
Even for seasoned investors, it can be natural to become wary when certain stocks are tanking in the stock portfolio. The knee jerk reaction can be to immediately change up the portfolio mix to help rectify the situation. Sometimes changes may need to be made, but often times, resisting the urge to make changes based on temporary downturns may prove to help the longer-term health of the stock portfolio. Investors may find themselves in the same predicament when markets are heading higher and every stock seems to be a winner. The impulse might be to double down and buy even more shares of a name that has been over performing recently. Once again, sometimes this may work out, but there will also be times when stocks have finished the run and adding to the position may end up nullifying previous gains if momentum swings back the other way.