Gritstone Oncology currently holds roughly 144.63
M in cash with (50.68
M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.98.
On a scale of 0 to 100, Gritstone Oncology holds a
performance score of 3. The company retains a Market Volatility (i.e., Beta) of 1.9384, which attests to a somewhat significant risk relative to the market. Let's try to break down what Gritstone's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Gritstone Oncology will likely underperform. Although it is vital to follow
Gritstone Oncology current price history, it is good to be conservative about what you can do with the information regarding equity current price movements. The philosophy towards determining
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 evaluating
Gritstone Oncology technical indicators, you can presently evaluate if the expected return of 0.35% will be sustainable into the future. Please utilizes Gritstone Oncology
semi deviation,
jensen alpha, as well as the
relationship between the Jensen Alpha and
semi variance to make a quick decision on whether Gritstone Oncology current trending patterns will revert.
How important is Gritstone Oncology's Liquidity
Gritstone Oncology
financial leverage refers to using borrowed capital as a funding source to finance Gritstone Oncology ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Gritstone Oncology 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 Gritstone Oncology'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 Gritstone Oncology'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 Gritstone Oncology's total debt and its cash.
Gritstone Oncology Correlation with Peers
Investors in Gritstone can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Gritstone Oncology. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Gritstone Oncology and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Gritstone is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Gritstone for more details
Detailed Perspective On Gritstone Oncology
Gritstone Oncology appears to be relatively risky, given 3 months investment horizon.
Gritstone Oncology holds Efficiency (Sharpe) Ratio of 0.0481, which attests that the entity had 0.0481% of return per unit of risk over the last 3 months. Our standpoint towards determining the 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 Gritstone Oncology, which you can use to evaluate the future volatility of the firm. Please utilize Gritstone Oncology's Market Risk Adjusted Performance of 0.0173,
risk adjusted performance of 0.0126, and Downside Deviation of 5.77 to validate if our risk estimates are consistent with your expectations.
A growth case for Gritstone Oncology
Latest standard deviation is at 7.41. Gritstone Oncology is displaying above-average volatility over the selected time horizon. Investors should scrutinize Gritstone Oncology independently to ensure intended market timing strategies are aligned with expectations about Gritstone Oncology volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Gritstone Oncology's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Gritstone Oncology's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
The Current Takeaway on Gritstone Oncology Investment
While other companies under the biotechnology industry are still a bit expensive, Gritstone Oncology may offer a potential longer-term growth to retail investors. To summarize, as of the 17th of December 2022, we believe that Gritstone Oncology is currently
undervalued with
low chance of distress in the next two years. However, our primary 90 days buy vs. sell advice on the enterprise is
Strong Sell.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile 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 Ellen Johnson do not own shares of Gritstone Oncology. Please refer to our
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