Analyst Daily

Computing the Quant Signals on SEB SA (ENXTPA:SK) Shares as Price to Cash Ratio Hits 11.21548

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 SEB SA ENXTPA:SK is 3.308753.  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 SEB SA (ENXTPA:SK) is 11.21548.  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 SEB SA (ENXTPA:SK) is 16.292457. This ratio is found by taking the current share price and dividing by earnings per share.

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Looking at stock market performance over the last few months, new investors may be worried that they might have missed out on some fantastic opportunities. With so much information and data available, they may not even know where to begin when getting into the stock investing arena. Everybody has to start somewhere, and becoming knowledgeable about the basics may help provide the perfect springboard from which to launch. Starting with the basics may help the investor understand the bigger picture which can then be filtered down into specifics. Because there is no magic formula to achieving success in the stock market, investors may have to explore many different strategies before choosing one to run with.

Watching some historical volatility numbers on shares of SEB SA (ENXTPA:SK), we can see that the 12 month volatility is presently 30.6912. The 6 month volatility is 27.6747, and the 3 month is spotted at 26.9394. 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. SEB SA (ENXTPA:SK) presently has a 10 month price index of 1.06571. 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 1.12761, the 24 month is 0.91177, and the 36 month is 1.12022. Narrowing in a bit closer, the 5 month price index is 0.88299, the 3 month is 1.01675, and the 1 month is currently 1.04101.

Valuation Ratios

Looking at some ROIC (Return on Invested Capital) numbers, SEB SA (ENXTPA:SK)’s ROIC is 0.275163. The ROIC 5 year average is 0.255114 and the ROIC Quality ratio is 11.23567. 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, SEB SA (ENXTPA:SK) currently has a value of 0.081231. 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 SEB SA (ENXTPA:SK) has a price to book ratio of 3.308753.

Investors may be diving into the latest company earnings reports trying to scope out some quality stocks to add to the portfolio. Nobody knows for sure which way overall market momentum will sway as we near the close of the calendar year. Investors may be getting ready to do a portfolio review to see which stocks are worthy to hold, and which ones have underperformed a may need to be unloaded. Regularly monitoring stock investments may keep the investor ready for any big market changes that may occur.

The Leverage Ratio of SEB SA (ENXTPA:SK) is 0.44005. 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.

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 SEB SA (ENXTPA:SK) is 0.066708.  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 SEB SA (ENXTPA:SK) is 36.  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 SEB SA (ENXTPA:SK) is 33.

Active traders are often looking for the next great move to secure profits in the stock market. Traders might be tracking stocks that are primed for a breakout. When a stock suddenly breaks to the upside, it has the potential to bring the optimistic crowd along with it. The breakout may bring in traders who missed out on the beginning of a run trying to capitalize on the back end. The professional trader is typically one who is able to stand out from the crowd. Being able to separate fantasy from reality can mean big profits for the dedicated trader. Impulse buying or selling on good or bad news is common in the stock market. Being able to come to a reasonable conclusion about why stock prices are headed one way and not the other can be a tough proposition. Paying attention to all the headlines may lead some traders down the path of no return if trades are being made strictly on daily news or even perception or that news. Discerning between what is actually driving a stock and what is perceived to be driving a stock may end up being a large factor between future gains and losses in the equity market.

At the time of writing, SEB SA (ENXTPA:SK) 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.

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 SEB SA ENXTPA:SK is 3.308753.  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 SEB SA (ENXTPA:SK) is 11.21548.  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 SEB SA (ENXTPA:SK) is 16.292457. This ratio is found by taking the current share price and dividing by earnings per share.

Many investors may have noticed that when the stock market has been running bullishly hot for quite some time, market tops can be a very busy place. Trading interest may be noticeably higher when the good times are rolling. This can be tricky because often times, prices may become inflated and somewhat overvalued. Traders will need to pay much more attention to what is going on at the tops of these bull runs. When interest is heightened, traders who got in at much better prices may be looking to unload the winners for quick profits. Doing the proper research can help clear out some of the fog that comes with an oversaturated market. Chartists will most likely be paying attention to price moves and trying to spot the next series of trends that develop. Spotting a trend earlier than the crowd may help the trader sell before the big drop or buy before the big rise. Learning how opportunities unfold and present themselves in the stock market may take a lot of time and effort to master. Professional traders are typically a few moves ahead of the novice and relatively naive trader. Getting to that next level should be on the mind of any dedicated trader or investor. Learning from past mistakes can make a huge difference in the future of the trader’s profits and psyche.

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