The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Eagle Bancorp, Inc. (EGBN) for last month was 0.980817 while the 3m is at 1.062949. This is calculated by taking the current share price and dividing by the share price at the specifiied time frame mentioned. If the ratio is greater than 1, then that means there has been an increase in price over that timeframe. If the ratio is less than 1, then we can determine that there has been a decrease in price. Similarly, investors look up the share price over 12 month periods. The Price Index 12m for Eagle Bancorp, Inc. (EGBN) is 0.904298. The Price Index 5Y stands at 1.581214.
Stock market investing can be a wild ride. Following the market on a daily basis can be exiting, but it may also bring out strong emotions especially when hard earned money is on the line. Making impulsive stock picks based on day to day market fluctuations can cause second guessing and a lot of future portfolio damage. Investors who are able to create a specific plan and stick to that plan may find themselves in a much better position when the market becomes highly volatile. It can be very challenging to maintain discipline and focus with so much information being released every day. Highly publicized stocks can be a tempting choice as they tend to garner the most attention by media outlets and the investing community. Filtering through the endless sea of data can be exhausting, and investor’s who are able to see through the trees are typically better prepared to make those tough portfolio decisions.
Looking at some ROIC (Return on Invested Capital) numbers, Eagle Bancorp, Inc. (EGBN)’s ROIC is
12.326865. The ROIC 5 year average is 8.249029. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.
Eagle Bancorp, Inc. (EGBN) has a Price to sales ratio of 83.659888. Investors may use Price to Book to display how the market portrays the value of a stock. Checking in on some other ratios, the company has a Price to Cash Flow ratio of 11.420278, and a current Price to Earnings ratio of 12.377828. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.
Checking in on some valuation rankings, Eagle Bancorp, Inc. (EGBN) has a Value Composite score of 41. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 44.
Watching some historical volatility numbers on shares of Eagle Bancorp, Inc. (EGBN), we can see that the 12 month volatility is presently 31.2407. The 6 month volatility is 31.131, and the 3 month is spotted at 27.3932. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.
based on value factors. He didn’t have databases such as ValueSignals at his disposal, but used people like his apprentice Warren Buffet to fill out stock sheets with the most important data.
Graham was always on the watch for firms that were so discounted, that if the company went into liquidation, the proceeds of the assets would still return a profit.
The ratio he used to identify these companies was Net Current Asset Value or NCAV. This ratio is much more stringent compared to book value (total assets - total liabilities) and is calculated as follows:
NCAV = Current Assets - Total Liabilities
Current Assets = Cash & ST Investments + Inventories + Accounts Receivable
Graham was only happy if he could buy the company at 2/3 of the NCAV. That’s the sort of margin of safety he was looking for.
This strategy was very successful during the years after Graham published it in his book ‘Security analysis’ in 1934 and also in more recent studies it has proven to provide superior results. A study done by the State University of New York to prove the effectiveness of this strategy showed that from the period of 1970 to 1983 an investor could have earned an average return of 29.4%, by purchasing stocks that fulfilled Graham’s requirement and holding them for one year. Nowadays it’s very difficult to find companies that meet Graham’s criteria.
We calculate NCAV to Market as follows:
NCAV-to-Market Ratio = NCAV divided by Market Cap
Eagle Bancorp, Inc. (EGBN) has an NCAV to Market value of -3.669528.
Book to Market
Eagle Bancorp, Inc. (EGBN) has a book to market ratio of 0.586883. A ratio used to find the value of a company by comparing the book value of a firm to its market value. Book value is calculated by looking at the firm’s historical cost, or accounting value. Market value is determined in the stock market through its market capitalization.
Book-to-Market Ratio= Common Shareholders Equity/Market Cap
Most investors are more familiar with P/B or Price-to-book. This is just the inverted value.
Price-to-Book Ratio=Market Cap/Common Shareholders Equity
Cash Flow on Capex
Another ratio S&P Analyst Richard Tortoriello recommends to use is ‘Operating Cash Flow to capital expenditure’. (‘Quantitative Strategies for Achieving Alpha’) This ratio is used by analysts to determine a company’s ability to fund operations. It helps to get a better understanding of whether a company is able to buy more assets without having to issue debt or equity.
A rising cash flow to capital expenditures ratio might indicate that the company is in a position to grow.
Please note that some industries are more capital intensive than others, which should be taken into account when evaluating companies.
Cash flow on Capex = Cash Flow from Operations / Capital Expenditure
The Cash Flow on Capex for Eagle Bancorp, Inc. (EGBN) is 111.64305.
Occasionally, investors will find themselves looking at an underperforming portfolio. Sometimes, this may be a case of the portfolio not being properly diversified. Investing too heavily in one stock or sector can cause the balance to tip the wrong way, especially if the overall market takes a downturn. Although there is no one way to protect against tough economic conditions, setting up the portfolio to withstand a prolonged sluggish period can help ease the mind of the investor when markets are in turmoil. Maintaining a large mix of different types of stocks may help the portfolio survive through rough patches down the line.