Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Check out
Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any otc stock could be closely tied with the direction of predictive economic indicators such as
signals in american community survey.
Diversified Energy OTC Stock Z Score Analysis
Diversified Energy's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
Current Diversified Energy Z Score | | | | 0.6 |
Most of Diversified Energy's fundamental indicators, such as Z Score, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Diversified Energy is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
| First Factor | = | 1.2 * ( | Working Capital | / | Total Assets ) |
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| Second Factor | = | 1.4 * ( | Retained Earnings | / | Total Assets ) |
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| Thrid Factor | = | 3.3 * ( | EBITAD | / | Total Assets ) |
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| Fouth Factor | = | 0.6 * ( | Market Value of Equity | / | Total Liabilities ) |
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| Fifth Factor | = | 0.99 * ( | Revenue | / | Total Assets ) |
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To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
CompetitionAccording to the company's disclosures, Diversified Energy has a Z Score of 0.6. This is 73.09% lower than that of the Energy sector and 79.31% lower than that of the
Oil & Gas E&P industry. The z score for all United States stocks is 93.12% higher than that of the company.
Diversified Z Score Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Diversified Energy's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the otc stocks which would be a good addition to a portfolio. Peer analysis of Diversified Energy could also be used in its relative valuation, which is a method of valuing Diversified Energy by comparing valuation metrics of similar companies.
Diversified Energy is currently under evaluation in z score category among its peers.
Diversified Fundamentals
Currently Active Assets on Macroaxis
Check out
Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any otc stock could be closely tied with the direction of predictive economic indicators such as
signals in american community survey.
You can also try the
Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Consideration for investing in Diversified OTC Stock
If you are still planning to invest in Diversified Energy check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Diversified Energy's history and understand the potential risks before investing.
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