Verastem, Inc. (NasdaqGM:VSTM)’s 97 Value Composite Score in Focus

The Value Composite 2 (VC2) is a ranking system that is determined by using the price to book value, price to sales, EBITDA to EV, price to cash flow, price to earnings and shareholder yield. The Value Composite Two of Verastem, Inc. (NasdaqGM:VSTM) is 97.   Similarly, the Value Composite One (VC1) is a method that investors use to figure out a firm’s value. The VC1 is determined using the same metrics as VC2, but without taking into consideration shareholder yield. The VC1 of Verastem, Inc. (NasdaqGM:VSTM) is 95.  A firm with a value of 0 is thought to be an undervalued firm, while a firm with a value of 100 is considered an overvalued firm. 

Investors may have a solid plan in place to start trading the share 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 Verastem, Inc. (NasdaqGM:VSTM) has a Q.i. Value of 84.00000. 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.

Verastem, Inc. (NasdaqGM:VSTM) has a current MF Rank of 17229. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to bring to light 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. Verastem, Inc. has a current ERP5 Rank of 17104. 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 considering at the ERP5 ranking, it is generally considered the lower the value, the better.

Valuation Scores

At the time of writing, Verastem, Inc. (NasdaqGM:VSTM) has a Piotroski F-Score of 3. The F-Score may assist unveil companies with strengthening balance sheets. The score may also be used to bring to light 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 alternate end, a stock with a score from 0-2 would be viewed as weak.

Verastem, Inc. has an M-score Beneish of -999.000000. 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 considering the Gross Margin score on shares of Verastem, Inc. (NasdaqGM:VSTM). The name at present has a score of 50.00000. 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 diligence 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 Verastem, Inc. (NasdaqGM:VSTM), we can see that the 12 month volatility is currently 73.555400. The 6 month volatility is 83.579000, and the 3 month is spotted at 83.496800. Following volatility data can assist add up 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 alternate factors that may be driving price action during the measured time timeframe. 

We can now take a quick glance at some historical share price index data. Verastem, Inc. (NasdaqGM:VSTM) currently has a 10 month price index of 1.34795. The price index is determined by dividing the current stock price by the stock price ten months ago. A ratio over one shows an boost in stock price over the timeframe. A ratio lower than one indicates that the price has decreased over that time timeframe. Looking at some other time periods, the 12 month price index is 1.16121, the 24 month is 3.90678, and the 36 month is 2.34010. Narrowing in a bit closer, the 5 month price index is 0.63762, the 3 month is 0.51279, and the 1 month is at present 0.78803.

Investors will be closely tracking the share 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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