Investors Set Sail on Valuation For Kimball Electronics, Inc. (NasdaqGS:KE) as VC2 Hits 22

Kimball Electronics, Inc. (NasdaqGS:KE) has a Value Composite score of 22. Developed by James O’Shaughnessy, the VC score uses six valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, price to sales and shareholder yield.  The VC score is displayed as a number between 1 and 100. In general, a firm with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued firm. Removing the sixth ratio (shareholder yield) we can view the Value Composite 1 score which is presently sitting at 23.

Investors may have a solid plan in place to start trading the stock market. Sometimes, these plans never get to be fully realized because of the lack of discipline in the early stages. When a new investor goes into the red right out the gate, there can be a tendency to take on too much exposure trying to get back to even. This may result in the investor abandoning the plan and making too many unreasonable trades with exorbitant expectations. Finding the self control to not get discouraged with early losses may assist the investor stick to the plan and eventually start achieving longer-term goals. 

Shifting gears, we can see that Kimball Electronics, Inc. (NasdaqGS:KE) has a Q.i. Value of 26.00000. 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 firm tends to be.

Kimball Electronics, Inc. (NasdaqGS:KE) has a current MF Rank of 5330. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to locate 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. Kimball Electronics, Inc. has a current ERP5 Rank of 4695. The ERP5 Rank may aid 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 viewing at the ERP5 ranking, it is generally considered the lower the value, the better.

Valuation Scores

At the time of writing, Kimball Electronics, Inc. (NasdaqGS:KE) has a Piotroski F-Score of 5. The F-Score may assist locate companies with strengthening balance sheets. The score may also be used to locate the weak performers. Joseph Piotroski developed the F-Score which employs nine nonstandard variables based on the firm 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 nonstandard end, a stock with a score from 0-2 would be viewed as weak.

Kimball Electronics, Inc. has an M-score Beneish of -2.438878. This M-score model was developed by Messod Beneish in order to unveil 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”.

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Investors may be interested in gazing the Gross Margin score on shares of Kimball Electronics, Inc. (NasdaqGS:KE). The name presently has a score of 15.00000. 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.

At some point in time, traders may need to deal with the overconfidence issue when dealing with the market. Traders may have times when they go on runs where everything works out. This may cause the individual to become overconfident in their ability and possibly lead to uninformed decisions late on. When the good times are rolling, it can be easy to think that the winners are a direct result of skill. This may be true, but if this is incorrect, it can lead to portfolio damage in the future. Having is long string of winning trades is a great thing, but markets can be cruel and have the ability to turn very quickly. Approaching every trade with the same home work and examination may assist the trader to make better decisions when a string of trades eventually go the wrong way.

Watching some historical volatility numbers on shares of Kimball Electronics, Inc. (NasdaqGS:KE), we can see that the 12 month volatility is at present 29.245300. The 6 month volatility is 28.662900, and the 3 month is spotted at 30.898600. 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 nonstandard factors that may be driving price action during the measured time timeframe. 

We can now take a quick peek at some historical share price index data. Kimball Electronics, Inc. (NasdaqGS:KE) at present has a 10 month price index of 0.95909. The price index is determined by dividing the current stock price by the stock price ten months ago. A ratio over one illustrates an jolt in stock price over the timeframe. A ratio lower than one signals that the price has decreased over that time timeframe. Looking at some different time periods, the 12 month price index is 0.81349, the 24 month is 0.95637, and the 36 month is 1.53734. Narrowing in a bit closer, the 5 month price index is 0.83980, the 3 month is 0.87461, and the 1 month is presently 0.93987.

Investors will be closely tracking the stock market as we charge through the last couple of months of the year. They may be doing a review of the portfolio to see what moves have worked and which ones haven’t. Reviewing specific holdings and past entry and exit points may assist the investor develop new ideas to trade on in the future. Staying on top of market happenings and the economic landscape can be a challenge. Investors will be closely following the action over the next quarter to assist gauge whether the bulls will remain out front, or if the bears will take the lead.  

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