What goes up must come down, and VinFast Auto Ltd (NASDAQ: VFS) is currently riding a wave of excitement that may soon face a reality check. With a market value hovering around 3.96, the company has attracted attention from investors eager to capitalize on the electric vehicle boom. However, despite the buzz, VinFast reported a staggering loss of 1.2 billion in its latest fiscal year, raising concerns about its long-term viability. As October approaches, questions loom over whether the stock can maintain its momentum or if it’s destined for a decline. In this post, we’ll take a closer look at VinFast Auto Ltd. and its potential for steady growth this October. As of September 15, 2024, the stock is priced at $3.96. Interestingly, VinFast Auto's stock doesn't seem to react much to the hype surrounding it. The expected immediate return from upcoming news is minimal, with a daily return currently at just 0.01%. The stock's volatility, linked to its hype, is strikingly high at around 2941.46%. Looking ahead, we anticipate the next significant announcement in about 10 days, which could impact its performance over the next 90 days.
The successful prediction of VinFast Auto
stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published
stock prices of traded companies, such as VinFast Auto Ltd, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at
the intrinsic value of VinFast Auto based on VinFast Auto hews, social hype, general headline patterns, and widely used
predictive technical indicators. We also calculate exposure to VinFast Auto's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to VinFast Auto's related companies.
Use Technical Analysis to project VinFast expected Price
VinFast Auto technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of VinFast Auto technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of VinFast Auto trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions.
More Info...VinFast Auto Gross Profit
VinFast Auto Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing VinFast Auto 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 VinFast Auto Gross Profit growth over the last 10 years. Please check VinFast Auto's
gross profit and other
fundamental indicators for more details.
What is driving VinFast Auto Investor Appetite?
The newest indifference towards the small price fluctuations of VinFast Auto may raise some interest from private investors as it is trading at a share price of
3.96 on very low momentum in trading volume. The company executives did not add any value to VinFast Auto investors in
August. However, most investors can still diversify their portfolios with VinFast Auto to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.02. This high volatility is attributed to the latest market swings and not-so-good earnings reports for some of the VinFast Auto partners.
Current Deferred Revenue Breakdown
VinFast Auto Current Deferred Revenue yearly trend continues to be comparatively stable with very little volatility. Current Deferred Revenue is likely to outpace its year average in 2024. Current Deferred Revenue usually refers to revenue that has been collected but not yet earned, typically from prepaid service contracts or subscriptions. This amount is considered a liability until the service is provided or the subscription period ends. At this time, VinFast Auto's Current Deferred Revenue is comparatively stable compared to the past year.
| 2010 | 564.27 Billion |
| 2021 | 1.33 Trillion |
| 2022 | 1.68 Trillion |
| 2023 | 949.6 Billion |
| 2024 | 1.25 Trillion |
What goes up must come down, and VinFast Auto (NASDAQ: VFS) may be facing a rocky October. With a staggering probability of bankruptcy at 96.00%, investors should be cautious as the company grapples with significant losses, including a return on assets of 0.18. The stock's current valuation stands at $13.89 billion, but with a market capitalization of only $9.26 billion, the disparity raises red flags. Additionally, the company's high total debt of $77.86 trillion compared to its revenue of $28.6 trillion suggests financial strain. As the market adjusts, the potential upside of 8.11 may not be enough to offset the risks, leaving many to wonder if the hype surrounding VinFast is about to fizzle out.
VinFast is expecting lower volatility in October
VinFast Auto Ltd is showing signs of stability as its downside variance has dropped to 11.74. This decrease indicates that the stock is becoming less prone to significant price fluctuations, which could be a good sign for investors seeking a more stable investment. As October progresses, this lower volatility may attract cautious investors looking for a smoother ride in the stock market, potentially boosting interest in VinFast shares. However, it's important to note that VinFast still experiences above-average downside volatility. Understanding these trends can help investors make better decisions. In bear markets, increased volatility can pressure stock prices and cause anxiety for investors, often leading them to adjust their portfolios as prices decline.
Our Final Takeaway
When is the right time to buy or sell VinFast Auto Ltd? Buying stocks such as VinFast Auto isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
All things considered, as of the 15th of September 2024, we believe VinFast Auto is currently
undervalued. It almost mirrors the market and projects
very high probability of financial unrest in the next two years. However, our up-to-date 90 days advice on the firm 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 VinFast Auto Ltd. Please refer to our
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