This firm is undervalued at 187.29 per share with modest projections ahead. On a scale of 0 to 100 Facebook holds performance score of 14. The firm shows Beta (market volatility) of -0.0417 which denotes to the fact that as returns on market increase, returns on owning Facebook are expected to decrease at a much smaller rate. During bear market, Facebook is likely to outperform the market. Although it is vital to follow to
Facebook historical returns, it is good to be conservative about what you can actually do with the information regarding equity current trending patterns. The philosophy in predicting future performance of any stock is to evaluate the business as a whole together with its past performance including all available fundamental and
technical indicators. We have found twenty-eight
technical indicators for Facebook which you can use to evaluate performance of the firm. Please utilizes Facebook
Jensen Alpha,
Maximum Drawdown and the
relationship between
Coefficient Of Variation and
Sortino Ratio to make a quick decision on weather Facebook
price patterns will revert.
Facebook
financial leverage refers to using borrowed capital as a funding source to finance Facebook ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Facebook financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Facebook's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Facebook's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Facebook's total debt and its cash.
To perform a cash flow analysis of Facebook, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Facebook is receiving and how much cash it distributes out in a given period. The Facebook cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
The company has Return on Asset (ROA) of
17.12 % which means that for every $100 of asset it generated profit of $17.12. This is typical in the industry. Likewise, it shows return on total equity (ROE) of
27.91 % which means that it produced $27.91 on every 100 dollars invested by current stockholders. The latest price spikes of Facebook could raise concerns from investors as the firm closed today at a share price of
162.9 on
18737106 in volume. The company directors and management were quite successful positioning the firm components to exploit market volatility in
March 2019. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.4285. The current volatility is consistent with the ongoing market swings in
January 2019 as well as with Facebook unsystematic, company specific events. Facebook preserves 29.29b of retained earnings. Facebook is selling at 164.62. That is 1.69% increase. Day high is 166.07. Facebook Net Cash Flow or Change in Cash and Cash Equivalents is decreasing over the last 5 years. Also, Facebook Earnings Before Interest Taxes and Depreciation Amortization EBITDA is somewhat stable at the moment.
| 2015 | 2016 | 2017 | 2018 | 2019 (projected) |
Facebook Cost of Revenue | 2,867,000,000 | 3,789,000,000 | 5,454,000,000 | 4,908,600,000 | 3,476,011,696 | Facebook Consolidated Income | 3,688,000,000 | 10,217,000,000 | 15,934,000,000 | 14,340,600,000 | 9,239,707,602 |
To conclude, our analysis show that Facebook Moves indifferently to market moves. The company is
undervalued and projects probability of distress
below average for the next 2 years. Our overall 'Buy/Hold/Sell' recommendation on the company is
Cautious Hold.
Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Facebook. Please refer to our
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