| 2021 | 2022 | 2023 | 2024 (projected) | Depreciation And Amortization | 2.2K | 1.9K | 1.7K | 1.7K | Cost Of Revenue | 2.2K | 1.2M | 1.1M | 1.2M |
What should you know about Paramount (USA Stocks:PZG) volatility?
 | By Aina Ster | Macroaxis Story |
Every cloud has a silver lining, and the recent dip in Paramount Gold Nevada's shares may just be that silver lining for savvy investors. The company, listed on the NYSE MKT and operating in the Basic Materials sector, saw its shares dip over 2%, presenting a potential buying opportunity.
The stock's Day Typical Price and Day Median Price both stood at $0.46, while the Valuation Market Value and Valuation Hype Value were pegged at $0.45. However, the Valuation Real Value was slightly lower at $0.42, indicating a potential undervaluation.
The stock's volatility is further evidenced by a negative Period Momentum Indicator and Price Action Indicator, both at -0.01, and a Daily Balance Of Power of -0.25. Despite this, the Accumulation Distribution stands at 0.0833, suggesting that the stock is being accumulated more than it is being distributed.
Analysts have a strong buy consensus on the stock, with one analyst giving a strong buy recommendation. The Analyst Target Price Estimated Value stands at $1.75, with the highest and lowest estimated target prices being $1.94 and $1.59 respectively. This suggests a significant potential upside from the current price levels.
In conclusion, Paramount Gold Nevada's recent dip may be a golden opportunity for investors to buy into a stock with strong upside potential. Over a 90-day investment horizon, Paramount Gold Nevada is projected to yield a return on investment 4.93 times higher than the market, albeit with a volatility rate 4.93 times greater. It trades approximately 0.14 of its potential returns per unit of risk, compared to the Dow Jones Industrial's 0.05. Given the market risk indifference among conservative investors, we recommend focusing on Paramount Gold's current volatility. We aim to assess whether this volatility will persist into June. Despite seeming stabilization, the volatility may still affect the stock's value. We currently deem Paramount Gold overvalued, with our calculations suggesting a real value nearing $0.42 per share.
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Reviewed by Raphi Shpitalnik
Paramount Gold Nevada Corp operates in the Metals & Mining sector, a part of the broader Materials industry.
Main Points
The recent 2.17% dip in Paramount Gold Nevada (PZG) shares presents an attractive buying opportunity for investors with a high-risk tolerance. The company's high Coefficient of Variation at 755.82 indicates significant volatility, which could lead to substantial gains for those willing to weather the storm. Despite the inherent risks, the company's Jensen Alpha of 0.40 suggests a potential for above-average returns when adjusted for the market's inherent risk. However, investors should also consider the downside deviation of 3.95, which indicates the potential for substantial losses.Volatility is a rate at which the price of Paramount Gold or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Paramount Gold may increase or decrease. In other words, similar to Paramount's beta indicator, it measures the risk of Paramount Gold and helps estimate the fluctuations that may happen in a short period of time. So if prices of Paramount Gold fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.Watch out for price decline
Please consider monitoring Paramount Gold on a daily basis if you are holding a position in it. Paramount Gold is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Paramount Gold stock to be traded above the $1 level to remain listed. If Paramount Gold stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Paramount Gold's Liquidity
Paramount Gold financial leverage refers to using borrowed capital as a funding source to finance Paramount Gold Nevada ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Paramount Gold 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 Paramount Gold'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 Paramount Gold'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 Paramount Gold's total debt and its cash.
Paramount Gold Gross Profit
Paramount Gold Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Paramount Gold previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Paramount Gold Gross Profit growth over the last 10 years. Please check Paramount Gold's gross profit and other fundamental indicators for more details.
Paramount Gold Volatility Drivers
Paramount Gold unsystematic risk is unique to Paramount Gold Nevada and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Paramount Gold you can also buy Almaden Minerals. You can also mitigate this risk by investing in the materials sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Paramount Gold important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Paramount Gold income statement and balance sheet. Here are more details about Paramount volatility.Click cells to compare fundamentals
Breaking down Paramount Gold Indicators
The current price rise of Paramount Gold Nevada may encourage stockholders to take a closer look at the company as it is trading at a share price of 0.45 on very low momentum in trading volume. The company directors and management may have good odds in positioning the company resources to exploit market volatility in June. The stock standard deviation of daily returns for 90 days investing horizon is currently 3.18. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Paramount Gold partners.
Every cloud has a silver lining, and in the case of Paramount Gold Nevada (PZG), the recent dip of over 2% in share price presents a potential buying opportunity. Despite the company's high probability of bankruptcy at 47.33%, it's worth noting that the firm has a low debt to equity ratio of 0.09%, indicating a relatively low risk of financial distress. Moreover, the company's current ratio stands at 4.97X, suggesting it has sufficient resources to meet its short-term obligations. With a target price of $1.2, the current dip could offer a substantial upside for risk-tolerant investors. However, potential investors should also consider the company's high volatility, as indicated by a beta of 1.87, which means the stock is likely to experience significant price swings..
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