The EBITDA Yield is a great way to determine a company’s profitability.  This number is calculated by dividing a company’s earnings before interest, taxes, depreciation and amortization by the company’s enterprise value.  Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents.  The EBITDA Yield for WPP plc (LSE:WPP) is 0.079974.

Investors might be looking into the magic eight ball trying to project where the stock market will be heading over the next few months. Some analysts believe that the market is ready to take a bearish turn, but others believe that there is still room for stocks to shoot higher. When the markets do have a sell-off, investors may be tempted to sell winners before they give up previous profits. Sometimes this may be justified, but other times this type of panic selling can cause investors to just have to repurchase shares at a higher price after the recovery. Keeping tabs on the underlying company fundamental data can help provide the investor with a better idea of whether to hold on to a stock or let it go. 

Another useful indicator to assist in detmining rank is the ERP5 Rank.  This is an investment tool that analysts use to discover undervalued companies.  The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The ERP5 of WPP plc (LSE:WPP) is 1417.  The lower the ERP5 rank, the more undervalued a company is thought to be.

Looking further, the MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price.  The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital.  The MF Rank of WPP plc (LSE:WPP) is 3568.  A company with a low rank is considered a good company to invest in.  The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

Piotroski F-Score

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength. The score helps determine if a company’s stock is valuable or not. The Piotroski F-Score of WPP plc (LSE:WPP) is 4. A score of nine indicates a high value stock, while a score of one indicates a low value stock. The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings. It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue. The score is also determined by change in gross margin and change in asset turnover.

The Gross Margin Score is calculated by looking at the Gross Margin and the overall stability of the company over the course of 8 years.  The score is a number between one and one hundred (1 being best and 100 being the worst).  The Gross Margin Score of WPP plc (LSE:WPP) is 56.00000.  The more stable the company, the lower the score.  If a company is less stable over the course of time, they will have a higher score.

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of WPP plc (LSE:WPP) for last month was 0.93519. This is calculated by taking the current share price and dividing by the share price one month ago. If the ratio is greater than 1, then that means there has been an increase in price over the month.

If the ratio is less than 1, then we can determine that there has been a decrease in price. Similarly, investors look up the share price over 12 month periods. The Price Index 12m for WPP plc (LSE:WPP) is 0.92809.

Valuation

WPP plc (LSE:WPP) presently has a current ratio of 0.95. 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 calculated by dividing current liabilities by current assets. The ratio may be used to provide an idea of the ability of a certain company to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the company may be more capable of paying back its obligations.

The Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of WPP plc (LSE:WPP) is 24.  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 price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings.  Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of WPP plc (LSE:WPP) is 16.

The Price to book ratio is the current share price of a company divided by the book value per share.  The Price to Book ratio for WPP plc LSE:WPP is 1.189665.  A lower price to book ratio indicates that the stock might be undervalued.  Similarly, Price to cash flow ratio is another helpful ratio in determining a company’s value.  The Price to Cash Flow for WPP plc (LSE:WPP) is 7.667115.  This ratio is calculated by dividing the market value of a company by cash from operating activities.  Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability.  The price to earnings ratio for WPP plc (LSE:WPP) is 16.301756. This ratio is found by taking the current share price and dividing by earnings per share.

FCF
The FCF Yield 5yr Average is calculated by taking the five year average free cash flow of a company, and dividing it by the current enterprise value.  Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents.  The average FCF of a company is determined by looking at the cash generated by operations of the company.  The Free Cash Flow Yield 5 Year Average of WPP plc (LSE:WPP) is 0.062459.

Investors might be trying to step up their game in order to play a more active role with their investments. Investors who keep a close watch on what is happening with their money may be putting themselves in a good spot to attain financial success in the markets. Being knowledgeable and comfortable about investments may be a great way to be certain that the hard earned money is working for the individual. Wise investors typically have a detailed plan that entails realistic expectations about profits in the stock market. There will always be risks dealing with the equity market, but hoping to get lucky may lead to severe losses and other pitfalls down the road. Everyone may have a different risk threshold when it comes to investing. It may be highly important to evaluate one’s own overall financial situation before going full throttle into the markets.

In terms of EBITDA Yield, Extra Space Storage Inc. (NYSE:EXR) currently has a value of 0.041093. This value is derived by dividing EBITDA by Enterprise Value.

When it comes to investing, people are generally told to make sure that they don’t put all their eggs in one basket. This saying can apply to investing in the stock market as well. Keeping the stock portfolio diversified can greatly behoove the individual investor. When hard earned money is on the line, individuals may want to pay extra attention as to how their equity holdings are spread out. Many investors will choose to pick stocks that combine large cap, small cap, and even international stocks. Although stock portfolio diversification does not eliminate risk, it can help reduce it during tumultuous market conditions.

ROIC

The Return on Invested Capital (aka ROIC) for Extra Space Storage Inc. (NYSE:EXR) is 0.075640.  The Return on Invested Capital is a ratio that determines whether a company is profitable or not.  It tells investors how well a company is turning their capital into profits.  The ROIC is calculated by dividing the net operating profit (or EBIT) by the employed capital.  The employed capital is calculated by subrating current liabilities from total assets.  Similarly, the Return on Invested Capital Quality ratio is a tool in evaluating the quality of a company’s ROIC over the course of five years.  The ROIC Quality of Extra Space Storage Inc. (NYSE:EXR) is 10.073879.  This is calculated by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC.  The ROIC 5 year average is calculated using the five year average EBIT, five year average (net working capital and net fixed assets).  The ROIC 5 year average of Extra Space Storage Inc. (NYSE:EXR) is 0.056338.

Another useful indicator to assist in detmining rank is the ERP5 Rank.  This is an investment tool that analysts use to discover undervalued companies.  The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The ERP5 of Extra Space Storage Inc. (NYSE:EXR) is 11222.  The lower the ERP5 rank, the more undervalued a company is thought to be.

Looking further, the MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price.  The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital.  The MF Rank of Extra Space Storage Inc. (NYSE:EXR) is 8734.  A company with a low rank is considered a good company to invest in.  The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

Piotroski F-Score

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength. The score helps determine if a company’s stock is valuable or not. The Piotroski F-Score of Extra Space Storage Inc. (NYSE:EXR) is 3. A score of nine indicates a high value stock, while a score of one indicates a low value stock. The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings. It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue. The score is also determined by change in gross margin and change in asset turnover.

Gross Margin
The Gross Margin Score is calculated by looking at the Gross Margin and the overall stability of the company over the course of 8 years.  The score is a number between one and one hundred (1 being best and 100 being the worst).  The Gross Margin Score of Extra Space Storage Inc. (NYSE:EXR) is 11.00000.  The more stable the company, the lower the score.  If a company is less stable over the course of time, they will have a higher score.

Price Index

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Extra Space Storage Inc. (NYSE:EXR) for last month was 0.99914. This is calculated by taking the current share price and dividing by the share price one month ago. If the ratio is greater than 1, then that means there has been an increase in price over the month. If the ratio is less than 1, then we can determine that there has been a decrease in price. Similarly, investors look up the share price over 12 month periods. The Price Index 12m for Extra Space Storage Inc. (NYSE:EXR) is 1.38671.

Shareholder Yield, Shareholder Yield (Mebane Faber)

The Shareholder Yield is a way that investors can see how much money shareholders are receiving from a company through a combination of dividends, share repurchases and debt reduction. The Shareholder Yield of Extra Space Storage Inc. (NYSE:EXR) is 0.021151. This percentage is calculated by adding the dividend yield plus the percentage of shares repurchased. Dividends are a common way that companies distribute cash to their shareholders. Similarly, cash repurchases and a reduction of debt can increase the shareholder value, too. Another way to determine the effectiveness of a company’s distributions is by looking at the Shareholder yield (Mebane Faber). The Shareholder Yield (Mebane Faber) of Extra Space Storage Inc. NYSE:EXR is -0.02024. This number is calculated by looking at the sum of the dividend yield plus percentage of sales repurchased and net debt repaid yield.

The Price to book ratio is the current share price of a company divided by the book value per share. The Price to Book ratio for Extra Space Storage Inc. NYSE:EXR is 6.085351. A lower price to book ratio indicates that the stock might be undervalued. Similarly, Price to cash flow ratio is another helpful ratio in determining a company’s value. The Price to Cash Flow for Extra Space Storage Inc. (NYSE:EXR) is 21.186809. This ratio is calculated by dividing the market value of a company by cash from operating activities. Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability. The price to earnings ratio for Extra Space Storage Inc. (NYSE:EXR) is 34.499270. This ratio is found by taking the current share price and dividing by earnings per share.

Accumulating knowledge about the stock market can be a big part of the investment planning process. Proper allocation of equity investments is also an important factor. Finding the proper mix of stocks may end up being more important than the single stocks added to the portfolio. Determining the correct asset allocation can depend on variables such as risk appetite and financial goals. These goals may be short-term, medium term, or longer-term. Investors will often have to determine how aggressive they will be when buying stocks. This can also depend on the overall time horizon and risk tolerance. Some investors might be unfazed by continuous market fluctuations. Others may be much more sensitive, and they may need to adjust their plans accordingly.