Quant Scorecard Review for Australian Vanadium Limited (ASX:AVL) as Return on Equity Hits -0.103196

Date: Oct 23, 2018

Today we are spotlighting shares of Australian Vanadium Limited (ASX:AVL) and looking at how the firm stacks up in terms of valuation by the numbers.  One of the most important ratios to look at when weighing an investment decision is the Return on Equity of the company.  At the time of writing Australian Vanadium Limited has an ROE of -0.103196. With ROE, Investors can see if they’re getting a good return on their money, while a company can evaluate how efficiently they’re utilizing shareholder’s equity.

Investors often have a large selection of stocks to research when looking to add to the portfolio. Investors have the ability to employ many different strategies to help beat the stock market. In the end, the main goal is typically to maximize profits while minimizing risk. Investors commonly strive to diversify the portfolio in order to minimize risk. Most serious investors are well aware of the risks when entering the equity market. Investors may choose to own stocks across multiple industries to keep from having all the eggs in one basket. Others may choose companies of different size, and even delve into foreign markets.  Finding those hidden gems in the stock market may not be the easiest of chores. Investors may have to spend many hours doing the research and crunching the numbers.

Drilling down into some additional metrics, we note that Australian Vanadium Limited (ASX:AVL) has a Price to Book ratio of 2.721396. 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 -44.749788, and a current Price to Earnings ratio of -26.371053. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

After a recent scan, we can see that Australian Vanadium Limited (ASX:AVL) has a Shareholder Yield of -0.323581 and a Shareholder Yield (Mebane Faber) of -0.18445. 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.

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