Africa Oil Price To Earning vs. Cash And Equivalents

AOIFF Stock  USD 1.37  0.02  1.44%   
Taking into consideration Africa Oil's profitability measurements, Africa Oil Corp may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Africa Oil's ability to earn profits and add value for shareholders.
For Africa Oil profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Africa Oil to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Africa Oil Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Africa Oil's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Africa Oil Corp over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Africa Oil's value and its price as these two are different measures arrived at by different means. Investors typically determine if Africa Oil is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Africa Oil's 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.

Africa Oil Corp Cash And Equivalents vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Africa Oil's current stock value. Our valuation model uses many indicators to compare Africa Oil value to that of its competitors to determine the firm's financial worth.
Africa Oil Corp is rated fifth in price to earning category among its peers. It is rated below average in cash and equivalents category among its peers creating about  32,937,931  of Cash And Equivalents per Price To Earning. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Africa Oil's earnings, one of the primary drivers of an investment's value.

Africa Cash And Equivalents vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Africa Oil

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
5.80 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

Africa Oil

Cash

 = 

Bank Deposits

+

Liquidities

 = 
191.04 M
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).

Africa Cash And Equivalents Comparison

Africa Oil is currently under evaluation in cash and equivalents category among its peers.

Africa Oil Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Africa Oil, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Africa Oil will eventually generate negative long term returns. The profitability progress is the general direction of Africa Oil's change in net profit over the period of time. It can combine multiple indicators of Africa Oil, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Africa Oil Corp., together with its subsidiaries, operates as an oil and gas exploration and development company in Kenya, Nigeria, and South Africa. Africa Oil Corp. was incorporated in 1983 and is headquartered in Vancouver, Canada. AFRICA OIL operates under Oil Gas EP classification in the United States and is traded on OTC Exchange.

Africa Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Africa Oil. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Africa Oil position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Africa Oil's important profitability drivers and their relationship over time.

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Other Information on Investing in Africa Pink Sheet

To fully project Africa Oil's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Africa Oil Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Africa Oil's income statement, its balance sheet, and the statement of cash flows.
Potential Africa Oil investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Africa Oil investors may work on each financial statement separately, they are all related. The changes in Africa Oil's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Africa Oil's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.