This firm's average rating is Hold from 1 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Obalon Therapeutics market sentiment investors' perception of the future value of Obalon. Let us look at a few aspects of Obalon technical analysis.
How important is Obalon Therapeutics's Liquidity
Obalon Therapeutics
financial leverage refers to using borrowed capital as a funding source to finance Obalon Therapeutics ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Obalon Therapeutics 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 Obalon Therapeutics' 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 Obalon Therapeutics' 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 Obalon Therapeutics's total debt and its cash.
Closer look at Obalon Therapeutics Semi Variance
Obalon Therapeutics has current Semi Variance of 42.99. Semi-variance provides a good measure of downside volatility for equity or a portfolio. It is similar to variance, but it only looks at periods where the returns are less than the target or average level.
Semi-variance is the square of semi-deviation. Semi-variance is calculated by averaging the deviations of returns that have a result that is less than the mean.
Semi Variance | = | SUM(RET DEV)2 N(ZERO) |
| = | 42.99 |
| SUM | = | Summation notation |
| RET DEV | = | Actual return deviation over selected period |
| N(ZERO) | = | Number of points with returns less than zero |
Let's now compare Obalon Therapeutics Semi Variance to its closest peers:
| OBLN | 42.98567291731186 |
| ESTA | 2.34 |
| EDAP | 3.58 |
| EYES | 35.33 |
| ECIA | 18.13 |
Obalon Therapeutics implied volatility may change after the rise
Latest kurtosis is at 53.94. Obalon Therapeutics is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about Obalon Therapeutics implied risk.
The Bottom Line
Whereas some companies within the medical devices industry are still a little expensive, even after the recent corrections, Obalon Therapeutics may offer a potential longer-term growth to institutional investors. In closing, as of the 22nd of January 2021, our ongoing 30 days buy-or-sell advice on the company is
Strong Sell. We believe Obalon Therapeutics is currently
overvalued with
below average probability of distress for the next two years.
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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 Obalon Therapeutics. Please refer to our
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