Fizzle or Sizzle? What’s Behind the 36 Value Comp For Vocus Group Limited (ASX:VOC)

The Value Composite Two of Vocus Group Limited (ASX:VOC) is 36. The VC2 is determined using the price to book value, price to sales, EBITDA to EV, price to cash flow, price to earnings and shareholder yield.  Similarly, the Value Composite One (VC1) is a method that investors use to think through a enterprise’s value.  The VC1 of Vocus Group Limited (ASX:VOC) is 29.  A enterprise with a value of 0 is thought to be an undervalued enterprise, while a enterprise with a value of 100 is considered an overvalued enterprise.  The VC1 is determined using the same metrics as VC2, but without taking into consideration shareholder yield.

Investors Often times closely follow fundamental and technical data. Even with all the evidence, it can be tough to think through if the economy and the markets are preparing for a whole new breakout run. With the recent trend resulting in a series of new all-time record highs, investors will must put the pieces together to try and gauge how long the second longest bull market in history will continue. Some professionals are still wondering if the next recession is looming, and if a bear market is right around the corner. Investors commonly strive to uncloak the highest probability of success. The next goal may be to capitalize on what could become the most interesting part of the record bull market. Investors will most likely be concentrating on what has proven to work in the past, which may offer a better idea as to how successful the strategies will be heading into the second half of the year and beyond. 

Vocus Group Limited (ASX:VOC) has a current MF Rank of 8700. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to uncloak high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks. Vocus Group Limited has a current ERP5 Rank of 6740. The ERP5 Rank may help investors with spotting companies that are undervalued. This ranking uses four ratios. These ratios are Earnings Yield, ROIC, Price to Book, and 5 year average ROIC. When studying at the ERP5 ranking, it is generally considered the lower the value, the better.

Watching some historical volatility numbers on shares of Vocus Group Limited (ASX:VOC), we can see that the 12 month volatility is at present 43.821100. The 6 month volatility is 37.941000, and the 3 month is spotted at 38.355300. Following volatility data can assist quantify how much the share price has fluctuated over the specified time timeframe. Although past volatility action may assist project future stock volatility, it may also be vastly nonstandard when taking into account different factors that may be driving price action during the measured time timeframe. 

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We can now take a quick glance at some historical share price index data. Vocus Group Limited (ASX:VOC) at present has a 10 month price index of 1.15410. The price index is determined by dividing the current stock price by the stock price ten months ago. A ratio over one points out an accelerate in stock price over the timeframe. A ratio lower than one suggests that the price has decreased over that time timeframe. Looking at some different time periods, the 12 month price index is 1.24382, the 24 month is 0.88395, and the 36 month is 0.50000. Narrowing in a bit closer, the 5 month price index is 1.42510, the 3 month is 1.18519, and the 1 month is at present 1.00285.

Valuation Scores

At the time of writing, Vocus Group Limited (ASX:VOC) has a Piotroski F-Score of 5. The F-Score may assist unveil companies with strengthening balance sheets. The score may also be used to uncloak the weak performers. Joseph Piotroski developed the F-Score which employs nine nonstandard variables based on the enterprise financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the different end, a stock with a score from 0-2 would be viewed as weak.

Vocus Group Limited has an M-score Beneish of -2.631247. This M-score model was developed by Messod Beneish in order to locate manipulation of financial statements. The score uses a combination of eight nonstandard variables. The specifics of the variables and formula can be found in the Beneish paper “The Detection of Earnings Manipulation”.

Investors may be interested in considering the Gross Margin score on shares of Vocus Group Limited (ASX:VOC). The name at present has a score of 39.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative.

Shifting gears, we can see that Vocus Group Limited (ASX:VOC) has a Q.i. Value of 37.00000. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The purpose of the Q.i. Value is to assist identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the enterprise tends to be.

Investors Often times struggle with keeping their emotions in check when approaching the share market. New investors can have a tendency to sell out of kilter winners too quick as well as hold onto losers for way too long. Some will argue that it is never a bad thing to take profits when they are on the table, but this can leave the investor with a large amount of regret if the stock continues to surge after selling. On the different end, investors may hold onto losers for way too long hoping for a bounce back. Holding out for better days can lead to even more exaggerated losses that can leave the investor with an even bigger feeling of regret. Battling to keep emotions separated from essential investing decisions can be a big plus for investors over the long haul. Of timeframe, this idea is simpler to preach and much harder to keep track of.

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