Avidity Biosciences Price To Book vs. Cash Per Share

RNA Stock  USD 37.93  0.55  1.43%   
Based on Avidity Biosciences' profitability indicators, Avidity Biosciences may not be well positioned to generate adequate gross income at this time. It has a very high odds of underperforming in January. Profitability indicators assess Avidity Biosciences' ability to earn profits and add value for shareholders. At present, Avidity Biosciences' Days Sales Outstanding is projected to decrease significantly based on the last few years of reporting. The current year's Days Of Sales Outstanding is expected to grow to 54.87, whereas Price To Sales Ratio is forecasted to decline to 65.66. At present, Avidity Biosciences' Accumulated Other Comprehensive Income is projected to decrease significantly based on the last few years of reporting. The current year's Net Interest Income is expected to grow to about 21.4 M, whereas Operating Income is projected to grow to (223.8 M).
For Avidity Biosciences profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Avidity Biosciences to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Avidity Biosciences utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Avidity Biosciences's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Avidity Biosciences over time as well as its relative position and ranking within its peers.
  
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Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Avidity Biosciences. If investors know Avidity will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Avidity Biosciences listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(2.88)
Revenue Per Share
0.103
Quarterly Revenue Growth
(0.17)
Return On Assets
(0.18)
Return On Equity
(0.28)
The market value of Avidity Biosciences is measured differently than its book value, which is the value of Avidity that is recorded on the company's balance sheet. Investors also form their own opinion of Avidity Biosciences' value that differs from its market value or its book value, called intrinsic value, which is Avidity Biosciences' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Avidity Biosciences' market value can be influenced by many factors that don't directly affect Avidity Biosciences' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Avidity Biosciences' value and its price as these two are different measures arrived at by different means. Investors typically determine if Avidity Biosciences is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Avidity Biosciences' 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.

Avidity Biosciences Cash Per Share vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Avidity Biosciences's current stock value. Our valuation model uses many indicators to compare Avidity Biosciences value to that of its competitors to determine the firm's financial worth.
Avidity Biosciences is rated third in price to book category among its peers. It is currently regarded as top stock in cash per share category among its peers fabricating about  2.33  of Cash Per Share per Price To Book. At present, Avidity Biosciences' Cash Per Share is projected to increase based on the last few years of reporting. 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 Avidity Biosciences' earnings, one of the primary drivers of an investment's value.

Avidity Cash Per Share vs. Price To Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Avidity Biosciences

P/B

 = 

MV Per Share

BV Per Share

 = 
3.28 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
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.

Avidity Biosciences

Cash Per Share

 = 

Total Cash

Average Shares

 = 
7.64 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.

Avidity Cash Per Share Comparison

Avidity Biosciences is currently under evaluation in cash per share category among its peers.

Avidity Biosciences Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Avidity Biosciences, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Avidity Biosciences will eventually generate negative long term returns. The profitability progress is the general direction of Avidity Biosciences' change in net profit over the period of time. It can combine multiple indicators of Avidity Biosciences, 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income125 K131.2 K
Net Interest Income20.3 M21.4 M
Interest Income20.3 M21.4 M
Operating Income-235.6 M-223.8 M
Net Loss-202.2 M-192.1 M
Income Before Tax-212.2 M-201.6 M
Total Other Income Expense Net23.4 M24.5 M
Net Loss-156.6 M-148.8 M
Net Loss-212.2 M-201.6 M
Income Tax Expense1.9 MM
Change To Netincome30.5 M32 M
Net Loss(2.91)(3.05)
Income Quality 0.56  0.50 
Net Income Per E B T 1.12  1.17 

Avidity Profitability Driver Comparison

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

Use Avidity Biosciences 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 Avidity Biosciences 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 Avidity Biosciences will appreciate offsetting losses from the drop in the long position's value.

Avidity Biosciences Pair Trading

Avidity Biosciences Pair Trading Analysis

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

In addition to having Avidity Biosciences 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.

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Emerging Markets ETFs
Emerging Markets ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Emerging Markets 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 Emerging Markets ETFs Theme or any other thematic opportunities.
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When determining whether Avidity Biosciences offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Avidity Biosciences' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Avidity Biosciences Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Avidity Biosciences Stock:
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For information on how to trade Avidity Stock refer to our How to Trade Avidity Stock guide.
You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
To fully project Avidity Biosciences' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Avidity Biosciences 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 Avidity Biosciences' income statement, its balance sheet, and the statement of cash flows.
Potential Avidity Biosciences investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Avidity Biosciences investors may work on each financial statement separately, they are all related. The changes in Avidity Biosciences's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Avidity Biosciences'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.