Delving Into The Numbers For The Clorox Company (NYSE:CLX) as Value Comp Two Reaches 49

The Value Composite Two of The Clorox Company (NYSE:CLX) is 49. The VC2 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, price to earnings and shareholder yield.  Similarly, the Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of The Clorox Company (NYSE:CLX) is 59.  A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company.  The VC1 is calculated using the same metrics as VC2, but without taking into consideration shareholder yield.

Investors often have a large selection of stocks to research when looking to add to the portfolio. Investors have the ability to employ many different strategies to help beat the stock market. In the end, the main goal is typically to maximize profits while minimizing risk. Investors commonly strive to diversify the portfolio in order to minimize risk. Most serious investors are well aware of the risks when entering the equity market. Investors may choose to own stocks across multiple industries to keep from having all the eggs in one basket. Others may choose companies of different size, and even delve into foreign markets. Finding those hidden gems in the stock market may not be the easiest of chores. Investors may have to spend many hours doing the research and crunching the numbers.

At the time of writing, The Clorox Company (NYSE:CLX) has a Piotroski F-Score of 5. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.

Watching some historical volatility numbers on shares of The Clorox Company (NYSE:CLX), we can see that the 12 month volatility is presently 19.149100. The 6 month volatility is 20.725600, and the 3 month is spotted at 20.262300. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period. 

Shifting gears, we can see that The Clorox Company (NYSE:CLX) has a Q.i. Value of 39.00000. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The purpose of the Q.i. Value is to help identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the company tends to be.

The Clorox Company (NYSE:CLX) has a current MF Rank of 3099. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks. The Clorox Company has a current ERP5 Rank of 5335. The ERP5 Rank may assist investors with spotting companies that are undervalued. This ranking uses four ratios. These ratios are Earnings Yield, ROIC, Price to Book, and 5 year average ROIC. When looking at the ERP5 ranking, it is generally considered the lower the value, the better.

The Clorox Company has an M-score Beneish of -2.626201. This M-score model was developed by Messod Beneish in order to detect manipulation of financial statements. The score uses a combination of eight different variables. The specifics of the variables and formula can be found in the Beneish paper “The Detection of Earnings Manipulation”.

Investors may be interested in viewing the Gross Margin score on shares of The Clorox Company (NYSE:CLX). The name currently has a score of 5.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative.

We can now take a quick look at some historical stock price index data. The Clorox Company (NYSE:CLX) presently has a 10 month price index of 0.94135. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 1.02886, the 24 month is 1.20571, and the 36 month is 1.28531. Narrowing in a bit closer, the 5 month price index is 0.96363, the 3 month is 1.00119, and the 1 month is currently 0.96056.

Investors looking to make big gains in the equity market may be looking to fine tune an existing strategy or create a whole new one. It may sound quite easy, buy low and sell high. Obviously, navigating the stock market typically entails much more than that. Identifying market tops and correction levels may be very difficult. Of course, it always hurts to take a loss, but figuring out how to shrink losses can help keep the ship afloat during turbulent market conditions. The situation for the average investor may vary greatly from one person to the next. Some investors will be working with a short-term plan, while other may be focused on a longer-term investment horizon. Goals may also vary from individual to individual. Keeping these goals in sight may help clear up the sometimes foggy investing waters, and provide clarity for creating a winning portfolio. 

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