TuanChe Stock Story


USD 2.38  0.02  0.83%   

45% of stocks are less risky than TuanChe on the basis of their historical return distribution, and some 99% of all equities are expected to be superior in generating returns on investments over the next 60 days. While some risk-loving traders are indifferent towards current market volatility, it is reasonable to go over the risk of investing in TuanChe Limited. We will analyze how risky is to take a position in TuanChe at this time.
Published over a month ago
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Breaking down TuanChe volatility

The entity is active under Communication Services sector as part of Internet Content & Information industry.
TuanChe has a performance score of 1 on a scale of 0 to 100. The entity has a beta of -0.0035, which indicates not very significant fluctuations relative to the market. Let's try to break down what TuanChe's beta means in this case. As returns on the market increase, returns on owning TuanChe are expected to decrease at a much lower rate. During the bear market, TuanChe is likely to outperform the market. Although it is important to respect TuanChe Limited current price movements, it is better to be realistic regarding the information on the equity's historical returns. The philosophy towards measuring future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By inspecting TuanChe Limited technical indicators, you can presently evaluate if the expected return of 0.0955% will be sustainable into the future. TuanChe Limited right now has a risk of 5.28%. Please validate TuanChe value at risk, and the relationship between the jensen alpha and skewness to decide if TuanChe will be following its existing price patterns.
Volatility is a rate at which the price of TuanChe 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 TuanChe may increase or decrease. In other words, similar to TuanChe's beta indicator, it measures the risk of TuanChe and helps estimate the fluctuations that may happen in a short period of time. So if prices of TuanChe 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 TuanChe's Liquidity

TuanChe financial leverage refers to using borrowed capital as a funding source to finance TuanChe Limited ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. TuanChe 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. Please check the breakdown between TuanChe's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for TuanChe, but it might be worth checking our own buy vs. sell analysis

Is TuanChe valued fairly by the market?

The firm generated the yearly revenue of 357.55 M. Annual Net Loss to common stockholders was (101.94 M) with gross profit of 272.26 M.

Some TuanChe technical indicators suggest bounce back

The value at risk is down to -7.93 as of today. TuanChe Limited exhibits very low volatility with skewness of 0.52 and kurtosis of 2.0. However, we advise investors to further study TuanChe Limited technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure TuanChe's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact TuanChe's 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.

TuanChe Implied Volatility

TuanChe's implied volatility exposes the market's sentiment of TuanChe Limited stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if TuanChe's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that TuanChe stock will not fluctuate a lot when TuanChe's options are near their expiration.

Our Final Take On TuanChe

Whereas some other entities within the internet content & information industry are still a little expensive, even after the recent corrections, TuanChe may offer a potential longer-term growth to investors. To sum up, as of the 1st of July 2022, our up-to-date 90 days buy-hold-sell recommendation on the company is Cautious Hold. We believe TuanChe is overvalued with below average chance of financial distress for the next two years.

Editorial Staff

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 TuanChe Limited. Please refer to our Terms of Use for any information regarding our disclosure principles.

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