| GDDY Stock | | | USD 100.06 2.14 2.19% |
This module uses fundamental data of Godaddy to approximate the value of its Beneish M Score. Godaddy M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out
Godaddy Piotroski F Score and
Godaddy Altman Z Score analysis.
For more information on how to buy Godaddy Stock please use our
How to Invest in Godaddy guide.
Long Term Debt to Equity is likely to rise to 45.86 in 2023, whereas
Total Debt is likely to drop slightly above 3.4
B in 2023. At this time, Godaddy's
Asset Turnover is fairly stable as compared to the past year. .
Current Ratio is likely to rise to 0.71 in 2023, whereas
Accrued Expenses Turnover is likely to drop 13.17 in 2023.
At this time, it appears that Godaddy is an unlikely manipulator. The earnings manipulation may begin if Godaddy's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Godaddy executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Godaddy's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.43
Beneish M Score - Unlikely Manipulator
| Elasticity of Receivables | 1.25 | Focus |
| Expense Coverage | 1.07 | Focus |
| Gross Margin Strengs | 1.1 | Focus |
| Depreciation Resistance | 1.01 | Focus |
| Net Sales Growth | 0.86 | Focus |
| Financial Leverage Condition | 0.93 | Focus |
Godaddy Beneish M-Score Indicator Trends
The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Godaddy's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Godaddy Beneish M-Score Driver Matrix
One of the toughest challenges investors face today is learning how to quickly synthesize historical
financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Godaddy's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Godaddy in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Godaddy's degree of accounting gimmicks and manipulations.
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About Godaddy Beneish M Score
M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled
The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed
financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.
Godaddy Earnings Manipulation Drivers
Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Godaddy. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
About Godaddy Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Godaddy's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Godaddy using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at
the intrinsic value of Godaddy based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing
financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our
fundamental analysis page.
GoDaddy Inc. engages in the design and development of cloud-based technology products in the United States and internationally. GoDaddy Inc. was incorporated in 2014 and is headquartered in Tempe, Arizona. Godaddy operates under SoftwareInfrastructure classification in the United States and is traded on New York Stock Exchange. It employs 6611 people.
Godaddy Investors Sentiment
The influence of
Godaddy's investor sentiment on the probability of its price appreciation or decline could be a good factor in your
decision-making process regarding taking a position in Godaddy. The overall
investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Godaddy's public news can be used
to forecast risks associated with an investment in Godaddy. The trend in average sentiment can be used to explain how an investor holding Godaddy can time the market purely based on public headlines and social activities around Godaddy. Please note that most equities that are difficult to arbitrage are affected by
market sentiment the most.
Godaddy's
market sentiment shows
the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Godaddy's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Godaddy's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Godaddy.
Godaddy Implied Volatility | | | | 39.12 |
Godaddy's implied volatility exposes the
market's sentiment of Godaddy stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Godaddy's implied volatility is high, the market thinks the stock has potential for
high price swings in either direction. On the other hand, the low implied volatility suggests that Godaddy stock will not fluctuate a lot when
Godaddy's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as
technical analysis,
investor sentiment usually refers to the aggregate attitude towards Godaddy in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge
market sentiment could be utilized using contrarian indexes, Godaddy's short interest history, or implied volatility extrapolated from Godaddy options trading.
Becoming a Better Investor with Macroaxis
Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Godaddy using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
When determining whether Godaddy
offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Godaddy's
financial statements, including income statements, balance sheets, and cash flow statements, to assess its
financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Godaddy Stock.
Outlined below are crucial reports that will aid in making a well-informed decision on Godaddy Stock: Check out
Godaddy Piotroski F Score and
Godaddy Altman Z Score analysis.
For more information on how to buy Godaddy Stock please use our
How to Invest in Godaddy guide.
Note that the Godaddy information on this page should be used as a complementary analysis to other Godaddy's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the
Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Complementary Tools for Godaddy Stock analysis
When running Godaddy's price analysis, check to
measure Godaddy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Godaddy is operating at the current time. Most of Godaddy's value examination focuses on studying past and present price action to
predict the probability of Godaddy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Godaddy's price. Additionally, you may evaluate how the addition of Godaddy to your portfolios can decrease your overall portfolio volatility.
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Is Godaddy's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost
the valuation of Godaddy. If investors know Godaddy will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Godaddy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth | Earnings Share | Revenue Per Share | Quarterly Revenue Growth | Return On Assets |
The market value of Godaddy is measured differently than its book value, which is the value of Godaddy that is recorded on the company's balance sheet. Investors also form their own opinion of Godaddy's value that differs from its market value or its book value, called intrinsic value, which is Godaddy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Godaddy's market value can be influenced by many factors that don't directly affect Godaddy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Godaddy's value and its price as these two are different measures arrived at by different means. Investors typically determine
if Godaddy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Godaddy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
