The Value Composite 2 (VC2) is a ranking system that is calculated by using the price to book value, price to sales, EBITDA to EV, price to cash flow, price to earnings and shareholder yield. The Value Composite Two of ams AG (SWX:AMS) is 41. Similarly, the Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 is calculated using the same metrics as VC2, but without taking into consideration shareholder yield. The VC1 of ams AG (SWX:AMS) is 44. 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.
When it comes to equity investing, being too confident may be just as detrimental as not being confident enough. Many investors may think they are making all the right moves when the markets are riding high. This may be the case, but sometimes it might be good fortune. Finding confidence to make trades in down market environments may make the difference between a good portfolio and a great portfolio. It can also be quite easy to confuse skill with a long-term bull market. Many bad decisions may still get rewarded when the market keeps heading higher. On the other end of the spectrum, having too much self-doubt may leave an investor with way too many what ifs. Managing confidence in the markets may play a pivotal role when making tough investing decisions. Finding that perfect balance between the needed gusto and the correct amount of caution may help ease the burden moving forward in the equity market.
We can now take a quick look at some historical stock price index data. ams AG (SWX:AMS) presently has a 10 month price index of 0.46777. 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 0.39418, the 24 month is 0.53717, and the 36 month is 1.30482. Narrowing in a bit closer, the 5 month price index is 1.83646, the 3 month is 1.05223, and the 1 month is currently 0.70053.
Watching some historical volatility numbers on shares of ams AG (SWX:AMS), we can see that the 12 month volatility is presently 85.739300. The 6 month volatility is 84.350600, and the 3 month is spotted at 73.455000. 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.
Shifting gears, we can see that ams AG (SWX:AMS) has a Q.i. Value of 52.00000. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The purpose of the Q.i. Value is to help identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the company tends to be.
At the time of writing, ams AG (SWX:AMS) has a Piotroski F-Score of 5. 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.
ams AG has an M-score Beneish of -3.254043. This M-score model was developed by Messod Beneish in order to detect manipulation of financial statements. The score uses a combination of eight different variables. The specifics of the variables and formula can be found in the Beneish paper “The Detection of Earnings Manipulation”.
Investors may be interested in viewing the Gross Margin score on shares of ams AG (SWX:AMS). The name currently has a score of 45.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative.
ams AG (SWX:AMS) has a current MF Rank of 11065. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks. ams AG has a current ERP5 Rank of 9903. The ERP5 Rank may assist investors with spotting companies that are undervalued. This ranking uses four ratios. These ratios are Earnings Yield, ROIC, Price to Book, and 5 year average ROIC. When looking at the ERP5 ranking, it is generally considered the lower the value, the better.
There is no easy answer when attempting to address the tough question of how to best approach the equity market, especially when facing a turbulent investing climate. There are many different schools of thought when it comes to stock trading. Investors may have to first gauge their appetite for risk in order to build a solid platform on which to construct a legitimate strategy. The wealth of available information has made the road a bit smoother to travel for amateur investors. Making the transition to the next level is most likely on the minds of many dedicated investors. Tracking technicals and fundamentals may also help provide a roadmap to help separate the contenders from the pretenders. As we head into the second half of the year, it remains to be seen which way the market will lean. Investors may have to do all the necessary homework in order to find stocks that will thrive under any market conditions.