Investors are constantly examining different financial indicators for potential stocks to own in order to assess trading opportunities. Asanko Gold Inc. (TSX:AKG) presently has an EV or Enterprise Value of 136442. The EV is used to show how the market assigns value to a company as a whole. EV is basically a modification of market cap, as it incorporates debt and cash for assessing a firm’s valuation. Tracking EV may help when comparing companies with different capital structures. EV can help investors gain a truer sense of whether a company is undervalued or not.
We can now take a quick look at some historical stock price index data. Asanko Gold Inc. (TSX:AKG) presently has a 10 month price index of 0.81373. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period.
Looking at some alternate time periods, the 12 month price index is 0.55333, the 24 month is 0.42347, and the 36 month is 0.15229. Narrowing in a bit closer, the 5 month price index is 0.85567, the 3 month is 0.96512, and the 1 month is currently 1.10667.
Asanko Gold Inc. (TSX:AKG) has a current ERP5 Rank of 9994. The ERP5 Rank may assist 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 looking at the ERP5 ranking, it is generally considered the lower the value, the better.
Checking in on some valuation rankings, Asanko Gold Inc. (TSX:AKG) has a Value Composite score of 36. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 48.
Watching some historical volatility numbers on shares of Asanko Gold Inc. (TSX:AKG), we can see that the 12 month volatility is presently 44.965600. The 6 month volatility is 43.987300, and the 3 month is spotted at 51.450300. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.
The Current Ratio of Asanko Gold Inc. (TSX:AKG) is 6.16. The Current Ratio is used by investors to determine whether a company can pay short term and long term debts. The current ratio looks at all the liquid and non-liquid assets compared to the company’s total current liabilities. A high current ratio indicates that the company might have trouble managing their working capital. A low current ratio (when the current liabilities are higher than the current assets) indicates that the company may have trouble paying their short term obligations.
Gross Margin Score
The Gross Margin Score is calculated by looking at the Gross Margin and the overall stability of the company over the course of 8 years. The score is a number between one and one hundred (1 being best and 100 being the worst). The Gross Margin Score of Asanko Gold Inc. (TSX:AKG) is 20.00000. The more stable the company, the lower the score. If a company is less stable over the course of time, they will have a higher score.
The M-Score, conceived by accounting professor Messod Beneish, is a model for detecting whether a company has manipulated their earnings numbers or not. Asanko Gold Inc. (TSX:AKG) has an M-Score of 62.563689. 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 Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength. The score helps determine if a company’s stock is valuable or not. The Piotroski F-Score of Asanko Gold Inc. (TSX:AKG) is 4. A score of nine indicates a high value stock, while a score of one indicates a low value stock. The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings. It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue. The score is also determined by change in gross margin and change in asset turnover.