Adding Up the Valuation on California Resources Corporation (NYSE:CRC)

The ERP5 Rank is an investment gadget that analysts use to uncloak undervalued companies.  The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The ERP5 of California Resources Corporation (NYSE:CRC) is 11517.  The lower the ERP5 rank, the more undervalued a firm is thought to be.

For investors just starting out, having clear investment goals can be a big asset when approaching the equity market. If individuals can’t see clearly where they want to go, they may end up somewhere that they don’t necessarily want to be. Taking the time to actually develop a plan and goals can aid get the ball rolling. Keeping these goals in mind as the investment process progresses may aid the investor remain on track when the ride gets rough. The equity market can be an intimidating place for those who are new to the investing world. Accumulating knowledge and staying focused can aid the investor slowly peel away the layers of uncertainty.

The Q.i. Value of California Resources Corporation (NYSE:CRC) is 42.00000. The Q.i. Value is another useful gadget in determining if a firm is undervalued or not. The Q.i. Value is determined using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity. The lower the Q.i. value, the more undervalued the firm is thought to be.

The EBITDA Yield is a great way to determine a firm’s profitability. This number is determined by dividing a firm’s earnings before interest, taxes, depreciation and amortization by the firm’s enterprise value. Enterprise Value is determined by taking the market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The EBITDA Yield for California Resources Corporation (NYSE:CRC) is 0.138776.

The Earnings to Price yield of California Resources Corporation (NYSE:CRC) is -0.175882.  This is determined by taking the EPS and dividing it by the last closing equity price.  This is one of the most trendy processes investors use to price out a firm’s financial performance.  Earnings Yield is determined by taking the operating income or earnings before interest and taxes (EBIT) and dividing it by the Enterprise Value of the firm.  The Earnings Yield for California Resources Corporation (NYSE:CRC) is 0.065307.  Earnings Yield helps investors add up the return on investment for a given firm.  Similarly, the Earnings Yield Five Year Average is the five year average operating income or EBIT divided by the current enterprise value.  The Earnings Yield Five Year average for California Resources Corporation is 0.077668.

The FCF Yield 5yr Average is determined by taking the five year average free cash flow of a firm, and dividing it by the current enterprise value. Enterprise Value is determined by taking the market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The average FCF of a firm is determined by studying at the cash generated by operations of the firm. The Free Cash Flow Yield 5 Year Average of California Resources Corporation (NYSE:CRC) is 0.015830.

Price Index

We can now take a quick peek at some historical stock price index data. California Resources Corporation (NYSE:CRC) currently has a 10 month price index of 0.81986. The price index is determined by dividing the current equity price by the equity price ten months ago. A ratio over one illustrates an increase in equity price over the timeframe. A ratio lower than one shows that the price has decreased over that time timeframe. Considering at some other time periods, the 12 month price index is 0.99672, the 24 month is 0.97023, and the 36 month is 3.57493. Narrowing in a bit closer, the 5 month price index is 0.48039, the 3 month is 0.76842, and the 1 month is currently 0.87740.

Returns

Considering at some ROIC (Return on Invested Capital) numbers, California Resources Corporation (NYSE:CRC)’s ROIC is 0.069587. The ROIC 5 year average is 0.060491 and the ROIC Quality ratio is 1.981036. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.

California Resources Corporation (NYSE:CRC) has a Price to Book ratio of -1.223393. This ratio is determined by dividing the current equity price by the book value per share. Investors may use Price to Book to display how the market portrays the value of a stock. Checking in on some other ratios, the firm has a Price to Cash Flow ratio of 2.132116, and a current Price to Earnings ratio of -5.685642. The P/E ratio is one of the most common ratios used for figuring out whether a firm is overvalued or undervalued.

California Resources Corporation (NYSE:CRC) currently has a current ratio of 0.63. The current ratio, also known as the working capital ratio, is a liquidity ratio that displays the proportion of current assets of a business relative to the current liabilities. The ratio is simply determined by dividing current liabilities by current assets. The ratio may be used to provide an idea of the ability of a certain firm to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the firm may be more capable of paying back its obligations.

The Price to book ratio is the current equity price of a firm divided by the book value per share.  The Price to Book ratio for California Resources Corporation NYSE:CRC is -1.223393.  A lower price to book ratio illustrates that the stock might be undervalued.  Similarly, Price to cash flow ratio is another useful ratio in determining a firm’s value.  The Price to Cash Flow for California Resources Corporation (NYSE:CRC) is 2.132116.  This ratio is determined by dividing the market value of a firm by cash from operating activities.  Additionally, the price to earnings ratio is another trendy way for analysts and investors to determine a firm’s profitability.  The price to earnings ratio for California Resources Corporation (NYSE:CRC) is -5.685642. This ratio is found by taking the current equity price and dividing by EPS.

Creating a diversified stock portfolio is one way that investors may combat the unknown. Appropriate levels of exposure that include different market scenarios might vary from one individual investor to the next. Investors may are required to careful that they do not become too reliant on one big position. When that position is producing returns, it can be easy to assume that the holding will continue to produce positive results. If the portfolio is weighted too heavily on one or two big positions, an overall market downturn may send the investor reeling. Finding that proper portfolio balance is typically what dedicated investors strive for.

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