Franklin Small Cap Fund Manager Performance Evaluation

FVFRX Fund  USD 55.76  0.50  0.90%   
The fund shows a Beta (market volatility) of 0.2, which means not very significant fluctuations relative to the market. As returns on the market increase, Franklin Small's returns are expected to increase less than the market. However, during the bear market, the loss of holding Franklin Small is expected to be smaller as well.

Risk-Adjusted Performance

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Over the last 90 days Franklin Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Franklin Small is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
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Expense Ratio1.2400
  

Franklin Small Relative Risk vs. Return Landscape

If you would invest  5,791  in Franklin Small Cap on September 25, 2024 and sell it today you would lose (215.00) from holding Franklin Small Cap or give up 3.71% of portfolio value over 90 days. Franklin Small Cap is currently producing negative expected returns and takes up 1.4875% volatility of returns over 90 trading days. Put another way, 13% of traded mutual funds are less volatile than Franklin, and 99% of all traded equity instruments are likely to generate higher returns over the next 90 trading days.
  Expected Return   
       Risk  
Assuming the 90 days horizon Franklin Small is expected to under-perform the market. In addition to that, the company is 1.84 times more volatile than its market benchmark. It trades about -0.03 of its total potential returns per unit of risk. The Dow Jones Industrial is currently generating roughly 0.07 per unit of volatility.

Franklin Small Current Valuation

Overvalued
Today
55.76
Please note that Franklin Small's price fluctuation is very steady at this time. At this time, the entity appears to be overvalued. Franklin Small Cap shows a prevailing Real Value of $54.64 per share. The current price of the fund is $55.76. We determine the value of Franklin Small Cap from reviewing fund fundamentals and technical indicators as well as its Probability Of Bankruptcy. In general, we advise acquiring undervalued mutual funds and dropping overvalued mutual funds since, at some point, mutual fund prices and their ongoing real values will submerge.
Since Franklin Small is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Franklin Mutual Fund. However, Franklin Small's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  55.76 Real  54.64 Hype  55.76
The intrinsic value of Franklin Small's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Franklin Small's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
54.64
Real Value
56.13
Upside
Estimating the potential upside or downside of Franklin Small Cap helps investors to forecast how Franklin mutual fund's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Franklin Small more accurately as focusing exclusively on Franklin Small's fundamentals will not take into account other important factors:
Hype
Prediction
LowEstimatedHigh
54.2755.7657.25
Details

Franklin Small Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Franklin Small's investment risk. Standard deviation is the most common way to measure market volatility of mutual funds, such as Franklin Small Cap, and traders can use it to determine the average amount a Franklin Small's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = -0.0324

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Estimated Market Risk

 1.49
  actual daily
13
87% of assets are more volatile

Expected Return

 -0.05
  actual daily
0
Most of other assets have higher returns

Risk-Adjusted Return

 -0.03
  actual daily
0
Most of other assets perform better
Based on monthly moving average Franklin Small is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Franklin Small by adding Franklin Small to a well-diversified portfolio.

Franklin Small Fundamentals Growth

Franklin Mutual Fund prices reflect investors' perceptions of the future prospects and financial health of Franklin Small, and Franklin Small fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on Franklin Mutual Fund performance.

About Franklin Small Performance

Evaluating Franklin Small's performance through its fundamental ratios, provides valuable insights into its operational efficiency and profitability. For instance, if Franklin Small has a high ROA and ROE, it suggests that the company is efficiently using its assets and equity to generate substantial profits, making it an attractive investment. Conversely, if Franklin Small has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements. Please also refer to our technical analysis and fundamental analysis pages.
The fund normally invests at least 80 percent of its net assets in investments of small-capitalization companies. Small-cap companies are companies with market capitalizations not exceeding either 1 the highest market capitalization in the Russell 2000 Index or 2 the 12-month average of the highest market capitalization in the Russell 2000 Index. It generally invests in equity securities that the funds investment manager believes are undervalued at the time of purchase and have the potential for capital appreciation. It may invest up to 25 percent of its total assets in foreign securities.

Things to note about Franklin Small Cap performance evaluation

Checking the ongoing alerts about Franklin Small for important developments is a great way to find new opportunities for your next move. Mutual Fund alerts and notifications screener for Franklin Small Cap help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
Franklin Small Cap generated a negative expected return over the last 90 days
The fund retains 98.68% of its assets under management (AUM) in equities
Evaluating Franklin Small's performance can involve analyzing a variety of financial metrics and factors. Some of the key considerations to evaluate Franklin Small's mutual fund performance include:
  • Analyzing Franklin Small's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
  • Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether Franklin Small's stock is overvalued or undervalued compared to its peers.
  • Examining Franklin Small's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
  • Evaluating Franklin Small's management team can have a significant impact on its success or failure. Reviewing the track record and experience of Franklin Small's management team can help you assess the Mutual Fund's leadership.
  • Pay attention to analyst opinions and ratings of Franklin Small's mutual fund. These opinions can provide insight into Franklin Small's potential for growth and whether the stock is currently undervalued or overvalued.
It's essential to remember that evaluating Franklin Small's mutual fund performance is not an exact science, and many factors can impact Franklin Small's mutual fund market price. Therefore, it's also important to diversify your portfolio and not rely solely on one company or stock for your investments.

Other Information on Investing in Franklin Mutual Fund

Franklin Small financial ratios help investors to determine whether Franklin Mutual Fund is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Franklin with respect to the benefits of owning Franklin Small security.
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