Facebook good news are not so good
 | By Rifka Kats | Macroaxis Story |
This post is to show some fundamental factors effecting the stock products. I will drop some light on how it may impact investing outlook for Facebook in December. We consider Facebook very steady. Facebook secures Sharpe Ratio (or Efficiency) of 0.0699 which denotes the organization had 0.0699% of return per unit of standard deviation over the last 1 month. Our philosophy in predicting volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Facebook which you can use to evaluate future volatility of the firm. Please confirm Facebook Downside Deviation of 1.9, Semi Deviation of 1.86 and Mean Deviation of 1.3 to check if risk estimate we provide are consistent with the epected return of 0.1117%.
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Reviewed by Vlad Skutelnik
This firm is fairly valued at 189.27 per share with modest projections ahead. Facebook has performance score of 4 on a scale of 0 to 100. The firm shows Beta (market volatility) of 0.7928 which denotes to the fact that as returns on market increase, Facebook returns are expected to increase less than the market. However during bear market, the loss on holding Facebook will be expected to be smaller as well. Although it is extremely important to respect Facebook historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy in predicting future performance of any stock is to evaluate the business as a whole together with its past performance including all available fundamental and technical indicators. By reviewing Facebook technical indicators you can presently evaluate if the expected return of 0.1117% will be sustainable into the future. Facebook right now shows a risk of 1.5978%. Please confirm Facebook Variance, Maximum Drawdown and the relationship between Coefficient Of Variation and Jensen Alpha to decide if Facebook will be following its price patterns.
How important is Facebook's Liquidity
Facebook financial leverage refers to using borrowed capital as a funding source to finance Facebook ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Facebook financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Facebook's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Facebook's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Facebook's total debt and its cash.
Breaking down Facebook Further
The modest gains experienced by current holders of Facebook could raise concerns from investors as the firm closed today at a share price of 189.91 on 21308545.000 in volume. The company executives have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in October. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.5978. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Facebook reports 8.2 b total debt. Facebook is selling for under 193.62. That is 1.03 percent increase. Today highest was 194.11. Facebook Earning Before Interest and Taxes EBIT is somewhat stable at the moment. Moreover, Facebook Revenues is decreasing over the last 4 years. The previous year value of Facebook Revenues was 62,600,000,000. In closing, I belive Facebook is currently fairly valued. It Responds to market and projects very small probability of bankruptcy in the next two years. Our final buy/sell recommendation on the company is Strong Hold.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Facebook. Please refer to our Terms of Use for any information regarding our disclosure principles.