Extreme Networks currently holds 410.81
M in liabilities. The entity has a current ratio of 0.93, indicating that it has a negative working capital and may not be able to pay financial obligations when due.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Extreme Networks has an asset utilization ratio of 241.16 percent. This connotes that the company is making $2.41 for each dollar of assets. An increasing asset utilization means that Extreme Networks is more efficient with each dollar of assets it utilizes for everyday operations.
We determine the current worth of Extreme Networks using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Extreme Networks based exclusively on its
fundamental and basic
technical indicators. By analyzing Extreme Networks's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Extreme Networks's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Extreme Networks. We calculate exposure to Extreme Networks's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Extreme Networks's related companies.
Extreme Networks Investment Alerts
Extreme investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Extreme Networks performance across your portfolios.Please check all
investment alerts for Extreme
Extreme Networks Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Extreme value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Extreme Networks competition to find
correlations between indicators driving the intrinsic value of Extreme.
Extreme Networks Gross Profit
Extreme Networks Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Extreme Networks 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 Extreme Networks Gross Profit growth over the last 10 years. Please check Extreme Networks'
gross profit and other
fundamental indicators for more details.
Detailed Perspective On Extreme Networks
The latest spike in Extreme Networks short term price appreciation could raise concerns from retail investors as the firm it trading at a share price of
9.93 on
915,360 in volume. The company executives have successfully maneuvered the firm at convenient times to take advantage of all market conditions in
March. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.37. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Extreme Networks partners.
Margins Breakdown
Extreme profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Extreme Networks itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Extreme Networks profit margins.
| Operating Margin | (12.32) |
| EBITDA Margin | (0.0323) |
| Gross Margin | 0.48 |
| Profit Margin | (0.12) |
Extreme Networks Net Income Per Employee is decreasing over the last 8 years. Moreover, Extreme Networks Earnings Before Interest Taxes and Depreciation Amortization EBITDA is relatively stable at the moment.
Over 3 percent fall for Extreme Networks. What does it mean for retail investors?
The maximum drawdown is down to 18.5 as of today. Extreme Networks shows above-average downside volatility for the selected time horizon. We advise investors to inspect Extreme Networks further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Extreme Networks future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Extreme Networks' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Extreme Networks' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Bottom Line On Extreme Networks
While other entities within the communication equipment industry are still a little expensive, even after the recent corrections, Extreme Networks may offer a potential longer-term growth to retail investors. In closing, as of the 28th of April 2021, we believe that at this point, Extreme Networks is
fairly valued with
below average probability of financial unrest within the next 2 years. Our up-to-date buy-hold-sell recommendation on the enterprise is
Strong Hold.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Extreme Networks. Please refer to our
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