ERHC Energy Debt To Equity vs. Current Valuation
| ERHE Stock | USD 0 0.0003 14.29% |
Debt To Equity | First Reported 2010-12-31 | Previous Quarter (0.02) | Current Value (0.03) | Quarterly Volatility 0.30460242 |
For ERHC Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ERHC Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ERHC Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ERHC Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ERHC Energy over time as well as its relative position and ranking within its peers.
ERHC |
Is Oil & Gas Exploration & Production space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of ERHC Energy. If investors know ERHC will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about ERHC Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.76) | Return On Assets (0.83) |
The market value of ERHC Energy is measured differently than its book value, which is the value of ERHC that is recorded on the company's balance sheet. Investors also form their own opinion of ERHC Energy's value that differs from its market value or its book value, called intrinsic value, which is ERHC Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ERHC Energy's market value can be influenced by many factors that don't directly affect ERHC Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ERHC Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if ERHC Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ERHC Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
ERHC Energy Current Valuation vs. Debt To Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining ERHC Energy's current stock value. Our valuation model uses many indicators to compare ERHC Energy value to that of its competitors to determine the firm's financial worth. ERHC Energy is rated below average in debt to equity category among its peers. It is rated below average in current valuation category among its peers reporting about 8,868,318 of Current Valuation per Debt To Equity. At present, ERHC Energy's Debt To Equity is projected to increase slightly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value ERHC Energy 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.ERHC Current Valuation vs. Debt To Equity
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
ERHC Energy |
| = | 0.17 % |
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
ERHC Energy |
| = | 1.51 M |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
ERHC Current Valuation vs Competition
ERHC Energy is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Energy industry is currently estimated at about 376.57 Billion. ERHC Energy adds roughly 1.51 Million in current valuation claiming only tiny portion of equities under Energy industry.
ERHC Energy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in ERHC Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ERHC Energy will eventually generate negative long term returns. The profitability progress is the general direction of ERHC Energy's change in net profit over the period of time. It can combine multiple indicators of ERHC Energy, 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.
| Last Reported | Projected for Next Year | ||
| Income Before Tax | -10.8 M | -10.3 M | |
| Net Loss | -10.8 M | -10.3 M | |
| Net Loss | -10.8 M | -10.3 M | |
| Operating Income | -11.7 M | -11.1 M | |
| Net Loss | -10.8 M | -10.3 M | |
| Total Other Income Expense Net | 1.2 M | 1.2 M | |
| Net Interest Income | -320 K | -336 K | |
| Interest Income | 614.70 | 546.40 | |
| Change To Netincome | -1.1 M | -1.1 M | |
| Net Loss | (0.37) | (0.35) | |
| Income Quality | 0.35 | 0.68 | |
| Net Income Per E B T | 1.38 | 1.20 |
ERHC Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on ERHC Energy. 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 ERHC Energy 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 ERHC Energy's important profitability drivers and their relationship over time.
Use ERHC Energy 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 ERHC Energy 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 ERHC Energy will appreciate offsetting losses from the drop in the long position's value.ERHC Energy Pair Trading
ERHC Energy Pair Trading Analysis
The ability to find closely correlated positions to ERHC Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ERHC Energy 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 ERHC Energy - 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 ERHC Energy to buy it.
The correlation of ERHC Energy 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 ERHC Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ERHC Energy 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 ERHC Energy 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 ERHC Energy position
In addition to having ERHC Energy 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 Investing Thematic Idea Now
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Companies involved in money management and investment banking services. The Investing theme has 37 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 Investing Theme or any other thematic opportunities.
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Check out Investing Opportunities. For information on how to trade ERHC Stock refer to our How to Trade ERHC Stock guide.You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
To fully project ERHC Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ERHC Energy at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include ERHC Energy's income statement, its balance sheet, and the statement of cash flows.