In reviewing some key ratios and quant data for Eureka Group Holdings Limited (ASX:EGH), we note that the mother of all ratios (Return on Equity) stands at 0.087328 for the firm. ROE reveals what percentage of each investment dollar is returned as a profit. Used in conjunction with a variety of other ratios, this indicator is a very important tool for investors in determining the effectiveness of a company to generate returns for investors.
Further, we can look at some other ratios and financial indicators in order to get an idea of the company’s valuation. Eureka Group Holdings Limited (ASX:EGH) presently has a current ratio of 3.64. The current ratio, also known as the working capital ratio, is a liquidity ratio that displays the proportion of current assets of a business relative to the current liabilities. The ratio is simply calculated by dividing current liabilities by current assets. The ratio may be used to provide an idea of the ability of a certain company to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the company may be more capable of paying back its obligations.
The FCF Yield 5yr Average is calculated by taking the five year average free cash flow of a company, and dividing it by the current enterprise value. Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The average FCF of a company is determined by looking at the cash generated by operations of the company. The Free Cash Flow Yield 5 Year Average of Eureka Group Holdings Limited (ASX:EGH) is 0.000895.
One of the most popular ratios is the “Return on Assets” (aka ROA). This score indicates how profitable a company is relative to its total assets. The Return on Assets for Eureka Group Holdings Limited (ASX:EGH) is 0.05873. This number is calculated by dividing net income after tax by the company’s total assets. A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.
The M-Score, conceived by accounting professor Messod Beneish, is a model for detecting whether a company has manipulated their earnings numbers or not. Eureka Group Holdings Limited (ASX:EGH) has an M-Score of -2.421938. The M-Score is based on 8 different variables: Days’ sales in receivables index, Gross Margin Index, Asset Quality Index, Sales Growth Index, Depreciation Index, Sales, General and Administrative expenses Index, Leverage Index and Total Accruals to Total Assets. A score higher than -1.78 is an indicator that the company might be manipulating their numbers.
The Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 of Eureka Group Holdings Limited (ASX:EGH) is 34. 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 Eureka Group Holdings Limited (ASX:EGH) is 44.
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 Eureka Group Holdings Limited (ASX:EGH) is 7593. 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 Earnings to Price yield of Eureka Group Holdings Limited ASX:EGH is 8.31%. This is calculated by taking the earnings per share and dividing it by the last closing share price. This is one of the most popular methods investors use to evaluate a company’s financial performance. Earnings Yield is calculated by taking the operating income or earnings before interest and taxes (EBIT) and dividing it by the Enterprise Value of the company. The Earnings Yield for Eureka Group Holdings Limited ASX:EGH is 5.39%. Earnings Yield helps investors measure the return on investment for a given company. Similarly, the Earnings Yield Five Year Average is the five year average operating income or EBIT divided by the current enterprise value. The Earnings Yield Five Year average for Eureka Group Holdings Limited (ASX:EGH) is 0.73%.
The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Eureka Group Holdings Limited (ASX:EGH) for last month was 1.03788. 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 Eureka Group Holdings Limited (ASX:EGH) is 0.48929.
Price Range 52 Weeks
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 Eureka Group Holdings Limited (ASX:EGH) over the past 52 weeks is 0.463. The 52-week range can be found in the stock’s quote summary.