Prime Meridian Cash Per Share vs. Current Valuation

PMHG Stock  USD 29.66  0.01  0.03%   
Considering Prime Meridian's profitability and operating efficiency indicators, Prime Meridian Holding 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 Prime Meridian's ability to earn profits and add value for shareholders.
For Prime Meridian profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Prime Meridian to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Prime Meridian Holding utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Prime Meridian's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Prime Meridian Holding 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 Prime Meridian's value and its price as these two are different measures arrived at by different means. Investors typically determine if Prime Meridian is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Prime Meridian'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.

Prime Meridian Holding Current Valuation vs. Cash Per Share Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Prime Meridian's current stock value. Our valuation model uses many indicators to compare Prime Meridian value to that of its competitors to determine the firm's financial worth.
Prime Meridian Holding is considered to be number one stock in cash per share category among its peers. It is regarded fifth in current valuation category among its peers . 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 Prime Meridian's earnings, one of the primary drivers of an investment's value.

Prime Current Valuation vs. Cash Per Share

Cash per Share is a ratio of current cash on hands or in the banks of the company to a total number of shares outstanding. It is used to determine a firm's liquidity and is a good indicator of the overall financial health of a company. Value investors often compare this ratio to the current stock quote, and if it exceeds the stock price they would invest in it.

Prime Meridian

Cash Per Share

 = 

Total Cash

Average Shares

 = 
43.06 X
Companies with high Cash per Share ratio will be considered as an attractive investment by most investors. In most industries if you can single out an equity instrument trading below its cash per share value, you have a bargain and should consider buying it. Finding the stocks traded below their cash value, therefore, can be a good starting point for investors using strategies based on fundamentals.
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.

Prime Meridian

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
(102.44 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.

Prime Current Valuation vs Competition

Prime Meridian Holding is regarded fifth in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is at this time estimated at about 505.76 Million. Prime Meridian has negative current valuation of (102.44 Million) having no influence on the industry.

Prime Meridian Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Prime Meridian, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Prime Meridian will eventually generate negative long term returns. The profitability progress is the general direction of Prime Meridian's change in net profit over the period of time. It can combine multiple indicators of Prime Meridian, 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.
Prime Meridian Holding Company operates as the bank holding company for Prime Meridian Bank that provides various consumer and commercial banking services to individuals and businesses. The company was founded in 2008 and is headquartered in Tallahassee, Florida. Prime Meridian operates under BanksRegional classification in the United States and is traded on OTC Exchange. It employs 100 people.

Prime Profitability Driver Comparison

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

Use Prime Meridian 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 Prime Meridian 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 Prime Meridian will appreciate offsetting losses from the drop in the long position's value.

Prime Meridian Pair Trading

Prime Meridian Holding Pair Trading Analysis

The ability to find closely correlated positions to Prime Meridian could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Prime Meridian 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 Prime Meridian - 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 Prime Meridian Holding to buy it.
The correlation of Prime Meridian 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 Prime Meridian moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Prime Meridian Holding 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 Prime Meridian 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 Prime Meridian position

In addition to having Prime Meridian 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 Consumer Discretionary ETFs Thematic Idea Now

Consumer Discretionary ETFs
Consumer Discretionary ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Consumer Discretionary ETFs theme has 29 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 Consumer Discretionary ETFs Theme or any other thematic opportunities.
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Other Information on Investing in Prime OTC Stock

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