The firm has a beta of -0.2421. Let's try to break down what Foghorn's beta means in this case. The returns on MARKET and Foghorn Therapeutics are completely uncorrelated. The beta indicator helps investors understand whether Foghorn Therapeutics moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Foghorn deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as
predicting future values of individual securities such as Foghorn TherapeuticsInc. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the
market sentiment and impact your forecasting results.
Predictive Modules for Foghorn TherapeuticsInc
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Foghorn TherapeuticsInc's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Foghorn TherapeuticsInc. Your research has to be compared to or analyzed against Foghorn TherapeuticsInc's peers to derive any actionable benefits. When done correctly, Foghorn TherapeuticsInc's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Foghorn TherapeuticsInc.
How important is Foghorn TherapeuticsInc's Liquidity
Foghorn TherapeuticsInc
financial leverage refers to using borrowed capital as a funding source to finance Foghorn TherapeuticsInc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Foghorn TherapeuticsInc 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 Foghorn TherapeuticsInc's 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 Foghorn TherapeuticsInc's 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 Foghorn TherapeuticsInc's total debt and its cash.
Foghorn TherapeuticsInc Gross Profit
Foghorn TherapeuticsInc Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Foghorn TherapeuticsInc 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 Foghorn TherapeuticsInc Gross Profit growth over the last 10 years. Please check Foghorn TherapeuticsInc's
gross profit and other
fundamental indicators for more details.
Detailed Perspective On Foghorn TherapeuticsInc
Foghorn Therapeutics is displaying above-average volatility over the selected time horizon. Investors should scrutinize Foghorn Therapeutics independently to ensure intended market timing strategies are aligned with expectations about Foghorn Therapeutics volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Foghorn Therapeutics' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Foghorn Therapeutics' 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.
Returns Breakdown
| Return on Assets | (0.53) |
| Return on Equity | (2.43) |
| Return Capital | (0.63) |
| Return on Sales | (153.16) |
Another 3 percent rise for Foghorn Therapeutics
The total risk alpha is down to -1.53 as of today.
As of the 20th of March, Foghorn Therapeutics shows the
coefficient of variation of
(1,203), and Mean Deviation of 3.64. Foghorn Therapeutics
technical analysis allows you to utilize
historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of
historical prices and volume momentum, or the prices will eventually revert. We were able to interpolate and analyze data for nineteen
technical drivers for Foghorn Therapeutics, which can be compared to its rivals. Please confirm
Foghorn Therapeutics mean deviation,
information ratio, as well as the
relationship between the Information Ratio and
downside variance to decide if Foghorn Therapeutics is priced favorably, providing market reflects its regular price of 16.12 per share. Given that Foghorn Therapeutics has
jensen alpha of
(0.51), we urge you to verify Foghorn Therapeutics's prevailing market performance to make sure the company can sustain itself at a future point.
Our Final Perspective on Foghorn Therapeutics
While few other entities under the biotechnology industry are still a bit expensive, Foghorn Therapeutics may offer a potential longer-term growth to investors. The bottom line, as of the 20th of March 2021, we believe that at this point, Foghorn Therapeutics is somewhat reliable with
below average chance of financial distress within the next 2 years. From a slightly different point of view, the entity appears to be
undervalued. However, our final 30 days buy-or-sell advice on the company is
Strong Sell.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
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 Ellen Johnson do not own shares of Foghorn TherapeuticsInc. Please refer to our
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