Investors Set Sail on Valuation For BAE Systems plc (LSE:BA.), Amdocs Limited (NasdaqGS:DOX)

After a recent scan, we can see that BAE Systems plc (LSE:BA.) has a Shareholder Yield of 0.039286 and a Shareholder Yield (Mebane Faber) of 0.04366. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.

Many investors enter the stock market without a plan in place. Investment goals may be a highly important part of coming out on top. Investors may need to set realistic and measureable goals in order to build a baseline for success. Defining investment goals clearly can help keep individual investors from making common mistakes and losing their shirts. Creating a plan for entering the equity market may start by setting up goals and outlining the objectives of the individual. These goals can differ depending on the person and situation. Many investors will opt to follow strategies put in place by others. This may work fine for some, but not as well for others. Keeping a close eye on particular stocks in the portfolio may help the investor when the time comes to adjust the holdings. Being able to adapt to rapidly changing market environments may turn out to be immensely important when the winds of uncertainty blow in.

Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow.  The FCF Growth of BAE Systems plc (LSE:BA.) is -0.129392.  Free cash flow (FCF) is the cash produced by the company minus capital expenditure.  This cash is what a company uses to meet its financial obligations, such as making payments on debt or to pay out dividends.  The Free Cash Flow Score (FCF Score) is a helpful tool in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow.  The FCF Score of BAE Systems plc (LSE:BA.) is 0.540545.  Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

The Gross Margin Score is calculated by looking at the Gross Margin and the overall stability of the company over the course of 8 years.  The score is a number between one and one hundred (1 being best and 100 being the worst).  The Gross Margin Score of BAE Systems plc (LSE:BA.) is 3.00000.  The more stable the company, the lower the score.  If a company is less stable over the course of time, they will have a higher score.

Valuation Scores
The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength.  The score helps determine if a company’s stock is valuable or not.  The Piotroski F-Score of BAE Systems plc (LSE:BA.) is 5.  A score of nine indicates a high value stock, while a score of one indicates a low value stock.  The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings.  It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue.  The score is also determined by change in gross margin and change in asset turnover.

The ERP5 Rank is an investment tool that analysts use to discover undervalued companies.  The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The ERP5 of BAE Systems plc (LSE:BA.) is 3721.  The lower the ERP5 rank, the more undervalued a company is thought to be. The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price.  The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital.  The MF Rank of BAE Systems plc (LSE:BA.) is 3018.  A company with a low rank is considered a good company to invest in.  The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

The Q.i. Value of BAE Systems plc (LSE:BA.) is 26.00000.  The Q.i. Value is a helpful tool in determining if a company is undervalued or not.  The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity.  The lower the Q.i. value, the more undervalued the company is thought to be.

Price Index
The Price Index is a ratio that indicates the return of a share price over a past period. The price index of BAE Systems plc (LSE:BA.) for last month was 1.06861. This is calculated by taking the current share price and dividing by the share price one month ago. If the ratio is greater than 1, then that means there has been an increase in price over the month. 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 BAE Systems plc (LSE:BA.) is 0.97064. Some of the best financial predictions are formed by using a variety of financial tools. The Price Range 52 Weeks is one of the tools that investors use to determine the lowest and highest price at which a stock has traded in the previous 52 weeks.  The Price Range of BAE Systems plc (LSE:BA.) over the past 52 weeks is 0.769000.  The 52-week range can be found in the stock’s quote summary.

Ever wonder how investors predict positive share price momentum?  The Cross SMA 50/200, also known as the “Golden Cross” is the fifty day moving average divided by the two hundred day moving average.  The SMA 50/200 for BAE Systems plc (LSE:BA.) is currently 0.83694.  If the Golden Cross is greater than 1, then the 50 day moving average is above the 200 day moving average – indicating a positive share price momentum.  If the Golden Cross is less than 1, then the 50 day moving average is below the 200 day moving average, indicating that the price might drop.

The Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of BAE Systems plc (LSE:BA.) is 40.  A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company.  The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings.  Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of BAE Systems plc (LSE:BA.) is 32.

BAE Systems plc (LSE:BA.) has a Price to Book ratio of 2.859658. This ratio is calculated by dividing the current share price by the book value per share. 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 14.337771, and a current Price to Earnings ratio of 21.980789. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

Investing in the stock market may include having to keep emotions in check. When things get crazy, investors may be forced with tough decisions. Being able to stay away from impulsive decisions may help when the time comes to tweak the portfolio. Having the proper discipline and market perspective may also be a highly desirable trait for a successful trader. Investors who are able to practice discipline may be able to avoid emotional trading pitfalls in the future. Even highly experienced investors may have to someday make the difficult decisions in order to keep the portfolio strong. Figuring out what works and what doesn’t may take many years of trial and error. Learning to filter through the daily noise can be a big asset when trying to focus on the particularly important information.

After a recent scan, we can see that Amdocs Limited (NasdaqGS:DOX) has a Shareholder Yield of 0.050398 and a Shareholder Yield (Mebane Faber) of 0.05040. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues.

Investors are frequently looking for any possible way to get a leg up in the market. This may involve committing to plan that will hopefully outperform the market and maximize profits. Many investors will choose to employ top-down analysis. Top-down analysis involves examining the big picture of the economy and the world of finance. After studying global economic conditions, investors may then analyze different sectors that are possibly well positioned to beat the market. After identifying the sector or sectors, investors may then do further analysis of stocks within the specific industry in order to find firms that are successful and primed for growth. Other individual investors may choose to go with bottom-up analysis when looking for stock to add to the portfolio. The bottom-up approach takes the emphasis off of the power and significance of market and economic cycles. Investors may focus on individual companies and not worry so much about the specific industry or economy in general. 

Valuation Scores
The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength.  The score helps determine if a company’s stock is valuable or not.  The Piotroski F-Score of Amdocs Limited (NasdaqGS:DOX) is 4.  A score of nine indicates a high value stock, while a score of one indicates a low value stock.  The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings.  It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue.  The score is also determined by change in gross margin and change in asset turnover.

The ERP5 Rank is an investment tool that analysts use to discover undervalued companies.  The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The ERP5 of Amdocs Limited (NasdaqGS:DOX) is 3284.  The lower the ERP5 rank, the more undervalued a company is thought to be. The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price.  The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital.  The MF Rank of Amdocs Limited (NasdaqGS:DOX) is 3004.  A company with a low rank is considered a good company to invest in.  The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

The Q.i. Value of Amdocs Limited (NasdaqGS:DOX) is 30.00000.  The Q.i. Value is a helpful tool in determining if a company is undervalued or not.  The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity.  The lower the Q.i. value, the more undervalued the company is thought to be.

The Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of Amdocs Limited (NasdaqGS:DOX) is 42.  A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company.  The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings.  Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of Amdocs Limited (NasdaqGS:DOX) is 33.

Amdocs Limited (NasdaqGS:DOX) has a Price to Book ratio of 2.242408. This ratio is calculated by dividing the current share price by the book value per share. 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 15.410895, and a current Price to Earnings ratio of 22.819928. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow.  The FCF Growth of Amdocs Limited (NasdaqGS:DOX) is -0.340987.  Free cash flow (FCF) is the cash produced by the company minus capital expenditure.  This cash is what a company uses to meet its financial obligations, such as making payments on debt or to pay out dividends.  The Free Cash Flow Score (FCF Score) is a helpful tool in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow.  The FCF Score of Amdocs Limited (NasdaqGS:DOX) is 0.412952.  Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

The Gross Margin Score is calculated by looking at the Gross Margin and the overall stability of the company over the course of 8 years.  The score is a number between one and one hundred (1 being best and 100 being the worst).  The Gross Margin Score of Amdocs Limited (NasdaqGS:DOX) is 1.00000.  The more stable the company, the lower the score.  If a company is less stable over the course of time, they will have a higher score.

Price Index
The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Amdocs Limited (NasdaqGS:DOX) for last month was 0.93556. This is calculated by taking the current share price and dividing by the share price one month ago. If the ratio is greater than 1, then that means there has been an increase in price over the month. 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 Amdocs Limited (NasdaqGS:DOX) is 0.86662. Some of the best financial predictions are formed by using a variety of financial tools. The Price Range 52 Weeks is one of the tools that investors use to determine the lowest and highest price at which a stock has traded in the previous 52 weeks.  The Price Range of Amdocs Limited (NasdaqGS:DOX) over the past 52 weeks is 0.791000.  The 52-week range can be found in the stock’s quote summary.

Ever wonder how investors predict positive share price momentum?  The Cross SMA 50/200, also known as the “Golden Cross” is the fifty day moving average divided by the two hundred day moving average.  The SMA 50/200 for Amdocs Limited (NasdaqGS:DOX) is currently 0.90565.  If the Golden Cross is greater than 1, then the 50 day moving average is above the 200 day moving average – indicating a positive share price momentum.  If the Golden Cross is less than 1, then the 50 day moving average is below the 200 day moving average, indicating that the price might drop.

When dealing with the equity markets, investors are often tasked with trying to find stocks that are bound for glory. Every investor dreams of finding those stocks that were overlooked but are poised to pick up momentum. New investors are often instructed to set goals before starting to invest. Creating attainable, realistic goals can be a good starting point before digging into the investment trenches. After setting up goals considering financial status, objectives, timeframes and risk appetite, the next step may involve creating an actionable plan. Once the plan is in place, it may be extremely important to routinely monitor the performance of the portfolio. There are often many well crafted investment plans that for whatever reason don’t seem to be working out properly. Being able to evaluate and adjust the plan based on market activity may end up being the difference between a winning or losing portfolio. Being able to adapt to the fast paced and often times tumultuous market landscape can be a gigantic benefit for long-term portfolio health.

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