Primal Solutions Stock Beta
| PMSO Stock | USD 0.0001 0.00 0.000003% |
Primal Solutions fundamentals help investors to digest information that contributes to Primal Solutions' financial success or failures. It also enables traders to predict the movement of Primal Stock. The fundamental analysis module provides a way to measure Primal Solutions' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Primal Solutions stock.
Primal | Beta |
Primal Solutions Company Beta Analysis
Primal Solutions' Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Current Primal Solutions Beta | 34.03 |
Most of Primal Solutions' fundamental indicators, such as Beta, 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, Primal Solutions is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Primal Beta Driver Correlations
Understanding the fundamental principles of building solid financial models for Primal Solutions is extremely important. It helps to project a fair market value of Primal Stock properly, considering its historical fundamentals such as Beta. Since Primal Solutions' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Primal Solutions' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Primal Solutions' interrelated accounts and indicators.
Click cells to compare fundamentals
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
| Competition |
In accordance with the recently published financial statements, Primal Solutions has a Beta of 34.033. This is much higher than that of the Software sector and significantly higher than that of the Information Technology industry. The beta for all United States stocks is notably lower than that of the firm.
Primal Beta Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Primal Solutions' direct or indirect competition against its Beta to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Primal Solutions could also be used in its relative valuation, which is a method of valuing Primal Solutions by comparing valuation metrics of similar companies.Primal Solutions is currently under evaluation in beta category among its peers.
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Primal Solutions will likely underperform.
Primal Fundamentals
| Return On Asset | 0.33 | ||||
| Profit Margin | 0.13 % | ||||
| Operating Margin | 0.27 % | ||||
| Current Valuation | 5.59 K | ||||
| Price To Sales | 0.0003 X | ||||
| Revenue | 6.37 M | ||||
| Gross Profit | 4.95 M | ||||
| EBITDA | 899 K | ||||
| Net Income | (290 K) | ||||
| Cash And Equivalents | 606 K | ||||
| Cash Per Share | 0.55 X | ||||
| Total Debt | 1.64 M | ||||
| Current Ratio | 0.59 X | ||||
| Book Value Per Share | (0.89) X | ||||
| Cash Flow From Operations | 485 K | ||||
| Earnings Per Share | (0.02) X | ||||
| Number Of Employees | 21 | ||||
| Beta | 34.03 | ||||
| Market Capitalization | 2.19 K | ||||
| Total Asset | 1.75 M | ||||
| Working Capital | (565 K) | ||||
| Current Asset | 806 K | ||||
| Current Liabilities | 1.37 M | ||||
| Net Asset | 1.75 M |
About Primal Solutions Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Primal Solutions's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Primal Solutions using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Primal Solutions based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Primal Solutions
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Primal Solutions position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Primal Solutions will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to Primal Solutions could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Primal Solutions when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Primal Solutions - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Primal Solutions to buy it.
The correlation of Primal Solutions is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Primal Solutions moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Primal Solutions moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Primal Solutions can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Primal Solutions Piotroski F Score and Primal Solutions Altman Z Score analysis. To learn how to invest in Primal Stock, please use our How to Invest in Primal Solutions guide.You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Primal Solutions. If investors know Primal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Primal Solutions listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Primal Solutions is measured differently than its book value, which is the value of Primal that is recorded on the company's balance sheet. Investors also form their own opinion of Primal Solutions' value that differs from its market value or its book value, called intrinsic value, which is Primal Solutions' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Primal Solutions' market value can be influenced by many factors that don't directly affect Primal Solutions' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Primal Solutions' value and its price as these two are different measures arrived at by different means. Investors typically determine if Primal Solutions is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Primal Solutions' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.