Get started
INDV LongBull flag forming. Next impulse as continuation. Indivior is listed in the FTSE 250, FTSE All-Share, FTSE 350, FTSE 350 Low Yield indices. Indivior is part of the Medicine and Biotech sector. Indivior Plc Ord Usd0.10 is listed on the London Stock Exchange, trading with ticker code INDV. It has a market capitalisation of £1,429m, with approximately 728m shares in issue. Over the last year, Indivior share price has been traded in a range of 138.2, hitting a high of 205.2, and a low of 67.
LSE:INDVLong
by henrymcivor
Forward trend Fib Analysis - can 100% gain be repeated.Long term forward Fibonacci trend analysis based on the rise from 3.5p and the retracement from intraday ATH 45p down to 14p floor. Similar analysis on a bull flag that recently emerged 14 > 25.5 > 23 has so far yielded 100% on the fib scale. Awesome Oscillator and vanilla RSI showing that this rally has some longer legs and has momentum to continue. If the long term trend follows the shorter term bull flag scenario, 100% fib gives a target of 55.66p Not investment advice - always do your own research. Thanks for reading. I welcome your thoughts.
LSE:EUALong
by lovelyboy
Is EUA poised to bounce on the PGM/battery-metals super cycleA huge amount of news, operational progress and institutional buying into EUA over the last 12 months has been coiled up into a highly depressed share price. The chart analysis details the dates and summary all of the announcements and the effect they have had on trading patterns, volume and prevailing SP. The bottom was reached at 15p on 1st September 2021 but has been on a near vertical rise back to early II placing prices since. Significantly, it is back to a level above a recent private placing worth $20m at 26.5p Hints of a super cycle forming in PGM group and battery metals has dovetailed with EUA's positive turnaround. Platinum, Palladium and Rhodium are all in EUAs basket and showing positive sentiment. Outages in other PGM producing hotspots and the anticipation of exponential demand for green technology are leading to a potential global supply squeeze situation. The wider market fundamentals are very supportive from lots of angles. A perfect storm one might conclude - augmented by EUA's well documented plan to sell off some assets and/or enter long term JV's with partner industries. The recent rise from 1st September has lead to both the 200 day VWAP MA (black curve) and the descending wedge line (purple dashed line established 3rd December) being breached with significant momentum. The money flow and increased volume point towards this rally having further to run and that it has justified market support behind it. Is a further re-rate is on the cards? Quite likely IMO the question is at what level does it top out..... mid 30's, closer to the ATH of 45p or beyond? I welcome the Trading View communities thoughts on this from a technical perspective - especially someone with Fib retracement skills. Thanks for reading.
LSE:EUALong
by lovelyboy
Analysis of the PEG ratio and income yieldIn this idea I’ll be covering two valuation metrics the PEG ratio and the income yield here is the PEG ratio: The PEG ratio (price earnings growth ratio): This is another very popular ratio and it is calculated by dividing the share price by the product of the eps and the annualised eps growth rate. There are many different types of PEG ratios, and the annual eps growth rate can be over the course of a different number of years, it could be for 1 year, or even 10 or more. However, it is most common to find the annual eps growth rate over the past 5 years. It is also worth noting that you can have a forward PEG ratio, just like you can have a forward P/E ratio, however, I would prefer to use past earnings as they have actually materialised and therefore are more reliable. The main advantage of the PEG ratio is that it will tell you how much you will be paying for the earnings over time, so whilst a company may look expansive on a P/E ratio now, if it is quickly growing over time the P/E ratio will be looking smaller and smaller and may even be considered cheap when it was once expensive. A PEG scored 1 is considered average and the lower the PEG score, the better, you are paying less for the total earnings. Unlike the P/E ratio, you can more comfortably compare the PEG ratio across different sectors as the sectors with more growth potential will have that more priced in with the PEG ratio. However, whilst the PEG ratio has numerous advantages there are also several drawbacks. 1. A one off charge or gain could mean that the earnings and growth of a company could be depressed or inflated, giving it a PEG score that is too low or too high, when in reality this one of charge will have little to do with what the earnings will be in the future. 2. The PEG score does not include cash conversion rate, a company could have high and rising earnings, but if this is not converted into cash it is difficult to envisage a scenario where the company generates value for the shareholders, or alternatively earnings could start to fall off as the company does not have as much cash to fund growth. 3. The PEG ratio does not give a far representation of cyclical shares, for example during a temporary downturn a company could have a high P/E and a low eps growth rate, but this is actually not an issue of a company it is just a common fluctuation. On the flip side during the upturns the company could have a low P/E and a very high eps growth rate, but this is actually not to do with the company itself. 4. The PEG ratio does not factor in how much debt or cash the group is carrying. A a company can enjoy the dual effect of increasing eps growth and earnings by simply acquiring another profitable corporation. The end effect is that without the company performing well itself a company can have a very low PEG as a result of higher eps and higher growth. So it makes sense that a company with net cash should be rewarded with a higher PEG than one which is highly leveraged as the group with net cash can expand more easily. However, the PEG ratio does not factor this in. 5. The PEG ratio also seems to favour companies with extremely high growth rates. The issue is that if a company has growth rates of 100% or more, the growth is likely to fall off quickly and so the company could look cheap on the PEG ratio, when in reality it is actually expensive. To deal with this I would recommend valuing a eps growth rates over 100% as 100% meaning that no company can have a PEG ratio of 1 or lower with a p/e of over 100. Then there is also the issue of diluted and basic EPS. As stated previously in the P/E article I would recommend using diluted EPS. I would recommend using diluted eps for both parts of the PEG ratio, I.e diluted eps for the earnings and growth parts of the ratio. This is the income yield: The income yield: This is the same as the P/E ratio, except it is calculated as a yield, to convert from the P/E ratio to the income yield find the reciprocal of the yield and multiply it by 100%. Since we are using the reciprocal this time, the larger the yield the better, as you are recovering a higher percentage of your earnings each year. (Complete analysis on the P/E ratio is already on TradingView see link at the bottom) The income yield, has the same limitations and advantages as the P/E ratio, except for the fact that it can be compared against other sources of income such as cash or bonds. It is worth noting that there are several other things to bear in mind apart from the yield when you are planning an investment. Firstly, the risk matters, you should generally expect a higher return from a riskier asset than a safe one, otherwise why take the risk? Secondly, it is also worth bearing in mind that the yield of an asset can fluctuate the yield can fall or hopefully, it should rise, and so it is worth paying a premium if the actual yield is likely to increase over time.
LSE:BOWLEducation
by hammochess
2
Analysis of the P/E ratioThe P/E valuation metric: This is by far the most popular valuation and it is simply dividing the market cap by net income (for the year), it can also be calculated by dividing the share price by eps, the lower the p/e the better, as you are having to pay less for the earnings. Generally, a company is considered expensive with a P/E of over 30 and cheap with a P/E of less than 15. The main advantage of p/e is that it provides a quick and simple way of finding how many years would you have to wait to get your money back from the investment. There are however, numerous drawbacks of the P/E ratio: 1. It does not factor in how quickly the earnings are growing. Whilst the earnings may look small in comparison to the price now, if the company is quickly growing in the future the earnings could look large in comparison to the market cap. 2. A one-off loss or gain could distort the earnings to look smaller or larger than they actually are and thus not giving an accurate representation of how richly the companies earnings are being valued. 3. It does not factor in how indebted a company is. A company can easily boost eps, by simply acquiring another profitable company and then using debt to finance the acquisition. The end result is that net income is boosted without diluting the shareholders. So a cash rich company should be rated more highly than an indebted one, as the cash rich corporation can use that cash to boost eps through acquisitions. 4. It does not factor in how cash generative the business model is, a company can be producing plenty of net income, but if the company is not converting it into cash it will be harder to create value for the shareholders. 5. The P/E ratio can be skewed for cyclical companies and earnings could be temporarily depressed or inflated, but this is not actually to do with the actual company itself is doing, but just the nature of cyclicals. 6. Earnings could also be skewed by events that impact trade. Most notable is a black swan event, of which Coronavirus is the latest event. It can however be more subtle than that, for example in 2018 British bowling alley operator Hollywood bowl had trading impacted after England did very well in the World Cup, people had sources of entertainment by watching England and so less people went bowling than otherwise. It is also worth noting that there are actually several types of P/E ratio. Mostly the P/E is compared to last years earnings, but you can also have forward P/E ratios. When people talk about forward a P/E ratio they almost always mean next years, however it can also be meant for years in the distant future for example forward 2030 earnings. It is worth noting to take forward estimates with a pinch of salt, they are usually overly optimistic and there is no guarantee that these earnings will be the same (or even near) to the earnings, so I would prefer sticking to past earnings as these are more reliable. It is also worth noting that whilst I have said that P/E = share price / eps it is worth noting that there is not one eps but two. In a company’s income statement, you will have basic (undiluted) eps and diluted eps. Undiluted eps is simply net income divided by total number of shares outstanding. However, diluted eps is slightly different in that it uses the number of shares when all convertible securities (such as convertible bonds or stock options) are converted into shares. I would recommend using undiluted eps as although earnings may be constant your earnings will look less and less as these securities are converted into shares. It is also worth noting that if you use market cap / net income, you have used the same as share price / basic eps, but I would recommend to actually use diluted eps, after all the share price can decrease even if the market cap increases, I.e. if your stake gets smaller.
LSE:BOWLEducation
by hammochess
4