Business

A Look at the valuation of Malibu Boats, Inc. (NasdaqGM:MBUU) as ERP5 Touches 3831

Malibu Boats, Inc. (NasdaqGM:MBUU) has an ERP5 rank of 3831. The ERP5 Rank is an investment tool that analysts use to discover undervalued companies.  It looks at the stock’s Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The lower the rank, the more undervalued a company is considered to be.

A highly common way to study stocks is through fundamental analysis. Investors examining the fundamentals may be analyzing the underlying factors that can affect the performance of a particular company. When focusing in on a specific company, investors will look at company management, financial information, business prospects, and industry competition. The goal of digging into the numbers is often times a way to calculate the current value of a company and try to gauge the value into the future. Zooming in on the vital statistics of a company can help provide a glimpse of the company’s overall health. 

The Q.i. Value of Malibu Boats, Inc. (NasdaqGM:MBUU) is 38.00000. The Q.i. Value is another helpful tool in determining if a company is undervalued or not. The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity. The lower the Q.i. value, the more undervalued the company is thought to be.

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 Malibu Boats, Inc. (NasdaqGM:MBUU) is 0.096417.

The Earnings to Price yield of Malibu Boats, Inc. (NasdaqGM:MBUU) is 0.059018.  This is calculated by taking the earnings per share and dividing it by the last closing share price.  This is one of the most popular methods investors use to evaluate a company’s financial performance.  Earnings Yield is calculated by taking the operating income or earnings before interest and taxes (EBIT) and dividing it by the Enterprise Value of the company.  The Earnings Yield for Malibu Boats, Inc. (NasdaqGM:MBUU) is 0.084026.  Earnings Yield helps investors measure the return on investment for a given company.  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 Malibu Boats, Inc. is 0.042133.

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 Malibu Boats, Inc. (NasdaqGM:MBUU) is 0.024394.

Price Index

We can now take a quick look at some historical stock price index data. Malibu Boats, Inc. (NasdaqGM:MBUU) presently has a 10 month price index of 1.02514. 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 1.30894, the 24 month is 2.01757, and the 36 month is 3.03266. Narrowing in a bit closer, the 5 month price index is 0.91278, the 3 month is 1.19300, and the 1 month is currently 1.01701.

Returns

Looking at some ROIC (Return on Invested Capital) numbers, Malibu Boats, Inc. (NasdaqGM:MBUU)’s ROIC is 0.538841. The ROIC 5 year average is 0.342778 and the ROIC Quality ratio is 1.856304. 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.

Malibu Boats, Inc. (NasdaqGM:MBUU) has a Price to Book ratio of 5.607999. This ratio is calculated by dividing the current share 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 company has a Price to Cash Flow ratio of , and a current Price to Earnings ratio of 16.943858. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

Malibu Boats, Inc. (NasdaqGM:MBUU) presently has a current ratio of 1.54. 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 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 Malibu Boats, Inc. NasdaqGM:MBUU is 5.607999.  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 Malibu Boats, Inc. (NasdaqGM:MBUU) is .  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 Malibu Boats, Inc. (NasdaqGM:MBUU) is 16.943858. This ratio is found by taking the current share price and dividing by earnings per share.

Investors may be combing through all the latest earnings reports and trying to make sense of all the numbers. With lots of information readily available, investors may be searching for that next batch of stocks to add to the portfolio. Finding high quality stocks may be at the top of the investor’s checklist. Once high quality stocks are spotted, the investor may be then looking for bargains among those stocks. Many investors will look for stocks that have displayed consistent earnings growth over an extended period of time. When a company drastically over performs for a quarter, investors may be quick to investigate. The same things may be done if a company severely underperforms compared to projections. 

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