Market Views: Tracking Shares of FireEye, Inc. (NASDAQ:FEYE)

After a recent check, FireEye, Inc.’s ROIC is -0.585987. The ROIC 5 year average is -0.876003 and the ROIC Quality ratio is at -0.048372. ROIC is a widely used financial metric that gauges how efficient a company is with earning cash flow through invested capital. A typical ROIC calculation divides operating income, adjusted for its tax rate, by total debt plus shareholder equity minus cash. The aim of the ROIC calculation is to show how much new cash is generated from capital investments. 

FireEye, Inc. (NASDAQ:FEYE) has a Gross Margin (Marx) ratio of 0.198103. This number is based on the research by University of Rochester professor Robert Novy-Marx. Marx believed that a high gross income ratio was a sign of a quality company. Looking further, FireEye, Inc. has a Gross Margin score of 58. This score is based on the Gross Margin (Marx) metric using a scale from 1 to 100 where a 1 would be seen as positive, and a 100 would be viewed as negative. FireEye, Inc. (NASDAQ:FEYE) currently has an EV or Enterprise Value of 3360415. The EV is used to show how the market assigns value to a company as a whole. EV is essentially a modification of market cap, as it incorporates debt and cash for assessing a firm’s valuation. Monitoring EV may help when comparing companies with different capital structures. EV can help investors gain a truer sense of whether a company is undervalued or not.

Value Investors may be keeping an eye on the Magic Formula Rank or MF Rank for FireEye, Inc. (NASDAQ:FEYE). Currently, FireEye, Inc. has a MF Rank of 13909. The Magic Formula was created and popularized by Joel Greenblatt in his book “The Little Book That Beats the Market”. Greenblatt’s formula helps identify stocks that are priced attractively with a high earnings yield, or solid reported profits compared to the market value of the company. To spot opportunities in the equity market, investors may be checking for stocks that have the lowest combined MF Rank. FireEye, Inc. (NASDAQ:FEYE) has a present Value Composite score of 83. This score falls on a scale from 0 to 100 where a lower score would indicate an undervalued company and a higher score would indicate an overvalued company. This ranking was created by James O’Shaughnessy using six different valuation ratios including price to book value, price to sales, EBITDA to EV, price to cash flow, price to earnings, and shareholder yield. FireEye, Inc. (NASDAQ:FEYE) currently has an EV or Enterprise Value of 3360415. The EV is used to show how the market assigns value to a company as a whole. EV is essentially a modification of market cap, as it incorporates debt and cash for assessing a firm’s valuation. Monitoring EV may help when comparing companies with different capital structures. EV can help investors gain a truer sense of whether a company is undervalued or not.

Leave a Comment