Defense Metals Current Valuation vs. Beta

DFMTF Stock  USD 0.07  0.01  7.50%   
Based on Defense Metals' profitability indicators, Defense Metals Corp may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Defense Metals' ability to earn profits and add value for shareholders.
For Defense Metals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Defense Metals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Defense Metals Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Defense Metals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Defense Metals 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 Defense Metals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Defense Metals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Defense Metals' 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.

Defense Metals Corp Beta vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Defense Metals's current stock value. Our valuation model uses many indicators to compare Defense Metals value to that of its competitors to determine the firm's financial worth.
Defense Metals Corp is rated below average in current valuation category among its peers. It is rated below average in beta category among its peers . The ratio of Current Valuation to Beta for Defense Metals Corp is about  72,606,822 . 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 Defense Metals' earnings, one of the primary drivers of an investment's value.

Defense Current Valuation vs. Competition

Defense Metals Corp is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Other Industrial Metals & Mining industry is currently estimated at about 981.54 Million. Defense Metals holds roughly 32.51 Million in current valuation claiming about 3% of all equities under Other Industrial Metals & Mining industry.

Defense Beta vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Defense Metals

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
32.51 M
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.

Defense Metals

Beta

 = 

Covariance

Variance

 = 
0.45
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.

Defense Beta Comparison

Defense Metals is currently under evaluation in beta category among its peers.

Beta Analysis

As returns on the market increase, Defense Metals' returns are expected to increase less than the market. However, during the bear market, the loss of holding Defense Metals is expected to be smaller as well.

Defense Metals Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Defense Metals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Defense Metals will eventually generate negative long term returns. The profitability progress is the general direction of Defense Metals' change in net profit over the period of time. It can combine multiple indicators of Defense Metals, 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.
Defense Metals Corp., engages in the acquisition, exploration, development, and evaluation of mineral properties in Canada. Defense Metals Corp. was incorporated in 2016 and is headquartered in Vancouver, Canada. DEFENSE METALS is traded on OTC Exchange in the United States.

Defense Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Defense Metals. 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 Defense Metals 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 Defense Metals' important profitability drivers and their relationship over time.

Use Defense Metals in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Defense Metals position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Defense Metals will appreciate offsetting losses from the drop in the long position's value.

Defense Metals Pair Trading

Defense Metals Corp Pair Trading Analysis

The ability to find closely correlated positions to Defense Metals could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Defense Metals when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Defense Metals - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Defense Metals Corp to buy it.
The correlation of Defense Metals is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Defense Metals moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Defense Metals Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Defense Metals can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Defense Metals position

In addition to having Defense Metals in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Aggressive Defence Thematic Idea Now

Aggressive Defence
Aggressive Defence Theme
Macroaxis small cap, aggressive-outlook picks designed for investors that are willing to accept higher levels of risk to hedge exposure to above-average market volatility. The Aggressive Defence theme has 50 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Aggressive Defence Theme or any other thematic opportunities.
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Other Information on Investing in Defense OTC Stock

To fully project Defense Metals' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Defense Metals 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 Defense Metals' income statement, its balance sheet, and the statement of cash flows.
Potential Defense Metals investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Defense Metals investors may work on each financial statement separately, they are all related. The changes in Defense Metals's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Defense Metals'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.