This module uses fundamental data of Petroleo Brasileiro to approximate the value of its Beneish M Score. Petroleo Brasileiro 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 Petroleo Brasileiro Piotroski F Score and Petroleo Brasileiro Altman Z Score analysis.
At this time, it appears that Petroleo Brasileiro is a possible manipulator. The earnings manipulation may begin if Petroleo Brasileiro'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 Petroleo Brasileiro 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 Petroleo Brasileiro'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.
Petroleo Brasileiro 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 Petroleo Brasileiro'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.
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 Petroleo Brasileiro's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Petroleo Brasileiro in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Petroleo Brasileiro's degree of accounting gimmicks and manipulations.
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.
Other Operating Expenses
73.54 Billion
At this time, Petroleo Brasileiro's Other Operating Expenses is relatively stable compared to the past year.
Petroleo Brasileiro 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 Petroleo Brasileiro. 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.
The Macroaxis Fundamental Analysis modules help investors analyze Petroleo Brasileiro Petrobras's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Petroleo Brasileiro using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Petroleo Brasileiro Petrobras 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.
The influence of Petroleo Brasileiro'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 Petroleo. 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 Petroleo Brasileiro's public news can be used to forecast risks associated with an investment in Petroleo. The trend in average sentiment can be used to explain how an investor holding Petroleo can time the market purely based on public headlines and social activities around Petroleo Brasileiro Petrobras. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Petroleo Brasileiro'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 Petroleo Brasileiro'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 Petroleo Brasileiro's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Petroleo Brasileiro.
Petroleo Brasileiro Implied Volatility
64.45
Petroleo Brasileiro's implied volatility exposes the market's sentiment of Petroleo Brasileiro Petrobras stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Petroleo Brasileiro'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 Petroleo Brasileiro stock will not fluctuate a lot when Petroleo Brasileiro'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 Petroleo Brasileiro 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, Petroleo Brasileiro's short interest history, or implied volatility extrapolated from Petroleo Brasileiro 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 Petroleo Brasileiro 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.
Build Optimal Portfolios
Align your risk with return expectations
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 Petroleo Brasileiro is a strong investment it is important to analyze Petroleo Brasileiro's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Petroleo Brasileiro's future performance. For an informed investment choice regarding Petroleo Stock, refer to the following important reports:
Note that the Petroleo Brasileiro information on this page should be used as a complementary analysis to other Petroleo Brasileiro'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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Complementary Tools for Petroleo Stock analysis
When running Petroleo Brasileiro's price analysis, check to measure Petroleo Brasileiro'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 Petroleo Brasileiro is operating at the current time. Most of Petroleo Brasileiro's value examination focuses on studying past and present price action to predict the probability of Petroleo Brasileiro's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Petroleo Brasileiro's price. Additionally, you may evaluate how the addition of Petroleo Brasileiro to your portfolios can decrease your overall portfolio volatility.
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Is Petroleo Brasileiro'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 Petroleo Brasileiro. If investors know Petroleo 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 Petroleo Brasileiro 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
(0.28)
Dividend Share
6.268
Earnings Share
3.54
Revenue Per Share
78.634
Quarterly Revenue Growth
(0.15)
The market value of Petroleo Brasileiro is measured differently than its book value, which is the value of Petroleo that is recorded on the company's balance sheet. Investors also form their own opinion of Petroleo Brasileiro's value that differs from its market value or its book value, called intrinsic value, which is Petroleo Brasileiro'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 Petroleo Brasileiro's market value can be influenced by many factors that don't directly affect Petroleo Brasileiro'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 Petroleo Brasileiro's value and its price as these two are different measures arrived at by different means. Investors typically determine if Petroleo Brasileiro is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Petroleo Brasileiro'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.
