How risky is to double down on Transalta Corp in April?
 | By Ellen Johnson | Macroaxis Story |
Transalta Corp is generating 0.399% of daily returns assuming volatility of 1.6019% on return distribution over 60 days investment horizon. While some risk-loving traders are indifferent towards current market volatility, it is reasonable to go over the risk of investing in Transalta Corp. We will go over odds for Transalta Corp to generate above-average margins in two-three weeks. Transalta Corp's very low volatility may have no significant impact on the stock's value as we estimate Transalta Corp as currently overvalued. The real value, based on our calculations, is getting close to 7.85 per share.
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Reviewed by Gabriel Shpitalnik
The entity runs under Utilities sector within Utilities—Independent Power Producers industry. Volatility is a rate at which the price of TransAlta Corp 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 TransAlta Corp may increase or decrease. In other words, similar to TransAlta's beta indicator, it measures the risk of TransAlta Corp and helps estimate the fluctuations that may happen in a short period of time. So if prices of TransAlta Corp 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.
How important is TransAlta Corp's Liquidity
TransAlta Corp financial leverage refers to using borrowed capital as a funding source to finance TransAlta Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. TransAlta Corp 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 TransAlta Corp'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 TransAlta Corp'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 TransAlta Corp's total debt and its cash.
TransAlta Corp Gross Profit
TransAlta Corp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing TransAlta Corp 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 TransAlta Corp Gross Profit growth over the last 10 years. Please check TransAlta Corp's gross profit and other fundamental indicators for more details.
TransAlta Corp Volatility Drivers
TransAlta Corp unsystematic risk is unique to TransAlta Corp 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 TransAlta Corp you can also buy AGL Energy. You can also mitigate this risk by investing in the utilities 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 TransAlta Corp 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 TransAlta Corp income statement and balance sheet. Here are more details about TransAlta volatility.Click cells to compare fundamentals
Breaking down TransAlta Corp Indicators
The firm reported the last year's revenue of 1.7 B. Reported Net Loss for the year was (203.72 M) with profit before taxes, overhead, and interest of 786 M.
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