Direct Digital EBITDA vs. Cash Flow From Operations
| DRCTWDelisted Stock | USD 0.56 0.05 8.20% |
For Direct Digital profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Direct Digital to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Direct Digital Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Direct Digital's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Direct Digital Holdings over time as well as its relative position and ranking within its peers.
Direct |
Direct Digital Holdings Cash Flow From Operations vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Direct Digital's current stock value. Our valuation model uses many indicators to compare Direct Digital value to that of its competitors to determine the firm's financial worth. Direct Digital Holdings is one of the top stocks in ebitda category among its peers. It also is one of the top stocks in cash flow from operations category among its peers making about 0.24 of Cash Flow From Operations per EBITDA. The ratio of EBITDA to Cash Flow From Operations for Direct Digital Holdings is roughly 4.13 . Comparative valuation analysis is a catch-all technique that is used if you cannot value Direct Digital by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Direct Cash Flow From Operations vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Direct Digital |
| = | 8.78 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes, and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investors or analysts to check on the quality of a company's earnings.
Direct Digital |
| = | 2.13 M |
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about the company having enough liquid resources to meet current and long term debt obligations.
Direct Cash Flow From Operations Comparison
Direct Digital is currently under evaluation in cash flow from operations category among its peers.
Direct Digital Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Direct Digital, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Direct Digital will eventually generate negative long term returns. The profitability progress is the general direction of Direct Digital's change in net profit over the period of time. It can combine multiple indicators of Direct Digital, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Direct Digital Holdings, Inc. operates as an end-to-end full-service programmatic advertising platform. The company was founded in 2018 and is headquartered in Houston, Texas. Direct Digital operates under Advertising Agencies classification in the United States and is traded on NASDAQ Exchange.
Direct Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Direct Digital. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Direct Digital position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Direct Digital's important profitability drivers and their relationship over time.
Use Direct Digital in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Direct Digital position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Direct Digital will appreciate offsetting losses from the drop in the long position's value.Direct Digital Pair Trading
Direct Digital Holdings Pair Trading Analysis
The ability to find closely correlated positions to Direct Digital could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Direct Digital when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Direct Digital - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Direct Digital Holdings to buy it.
The correlation of Direct Digital is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Direct Digital moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Direct Digital Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Direct Digital can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Direct Digital position
In addition to having Direct Digital in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Utilities - Regulated Electric Thematic Idea Now
Utilities - Regulated Electric
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Utilities - Regulated Electric theme has 7 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Utilities - Regulated Electric Theme or any other thematic opportunities.
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Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate. You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Consideration for investing in Direct Stock
If you are still planning to invest in Direct Digital Holdings check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Direct Digital's history and understand the potential risks before investing.
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