DBV Technologies (NASDAQ:DBVT) high volatility trend continues
 | By Rifka Kats | Macroaxis Story |
DBV Technologies is currently generating 2.3871% in daily expected returns and assumes 9.4254% risk (volatility on return distribution) over the 90 days horizon. While some risk-seeking private investors are getting worried about healthcare space, it is reasonable to review DBV Technologies S as a possible investment alternative. We will go over a few points DBV Technologies private investors should remember regarding its volatility. The newest DBV Technologies risk factors may impact the value of the stock as we estimate DBV Technologies as currently undervalued. The real value is approaching 6.96 per share.
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Reviewed by Vlad Skutelnik
DBV Technologies S currently holds roughly 235.61 M in cash with (144.46 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 5.12. DBV Technologies holds a performance score of 17 on a scale of zero to a hundred. The firm shows a Beta (market volatility) of 2.1898, which means a somewhat significant risk relative to the market. Let's try to break down what DBV Technologies's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, DBV Technologies will likely underperform. Although it is essential to pay attention to DBV Technologies S historical returns, it is also good to be reasonable about what you can do with equity current trending patterns. Our way of predicting future potential of any stock is to look not only at its past charts but also at the business as a whole, including all available fundamental and technical indicators. To evaluate if DBV Technologies S expected return of 2.39 will be sustainable into the future, we have found twenty-one different technical indicators, which can help you to check if the expected returns are sustainable. Use DBV Technologies information ratio and downside variance to analyze future returns on DBV Technologies. Volatility is a rate at which the price of DBV Technologies or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of DBV Technologies may increase or decrease. In other words, similar to DBV's beta indicator, it measures the risk of DBV Technologies and helps estimate the fluctuations that may happen in a short period of time. So if prices of DBV Technologies fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
Watch out for price decline
Please consider monitoring DBV Technologies on a daily basis if you are holding a position in it. DBV Technologies is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as DBV Technologies stock to be traded above the $1 level to remain listed. If DBV Technologies stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is DBV Technologies's Liquidity
DBV Technologies financial leverage refers to using borrowed capital as a funding source to finance DBV Technologies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. DBV Technologies financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to DBV Technologies' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of DBV Technologies' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between DBV Technologies's total debt and its cash.
DBV Technologies Gross Profit
DBV Technologies Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing DBV Technologies previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show DBV Technologies Gross Profit growth over the last 10 years. Please check DBV Technologies' gross profit and other fundamental indicators for more details.
DBV Technologies Volatility Drivers
DBV Technologies unsystematic risk is unique to DBV Technologies and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in DBV Technologies you can also buy ESSA Pharma. You can also mitigate this risk by investing in the health care sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing DBV Technologies important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in DBV Technologies income statement and balance sheet. Here are more details about DBV volatility.Click cells to compare fundamentals
Another angle On DBV Technologies
The newest price gain of DBV Technologies S could raise concerns from private investors as the entity it trading at a share price of 5.66 on very low momentum in volume. The company management teams may have good odds in positioning the entity resources to exploit market volatility in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 9.43. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the DBV Technologies partners.
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