What is August outlook for Korn Ferry?
 | By Ellen Johnson | Macroaxis Story |
The firm current daily volatility is 3.75 percent, with a beta of -0.11 and alpha of 0.42 over DOW. We estimate Korn Ferry as currently fairly valued. The real value is approaching 30.34 per share. What is Korn Ferry Target Price Odds to finish over Current Price? Based on a normal probability distribution, the odds of Korn Ferry to move above the current price in 30 days from now is about 21.89%. The Korn Ferry probability density function shows the probability of Korn Ferry Stock to fall within a particular range of prices over 30 days. Considering the 30-days investment horizon, Korn Ferry has the beta of -0.1114 . This indicates as returns on benchmark increase, returns on holding Korn Ferry are expected to decrease at a much lower rate. During the bear market, however, Korn Ferry is likely to outperform the market. Additionally, the company has an alpha of 0.4216, implying that it can potentially generate 0.42% excess return over DOW after adjusting for the inherited market risk (beta).
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Reviewed by Michael Smolkin
Korn Ferry has 645.29 M in debt with debt to equity (D/E) ratio of 0.51, which is OK given its current industry classification. This firm has 645.29 M in debt with debt to equity (D/E) ratio of 0.51, which is OK given its current industry classification. The company has a current ratio of 2.1, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Korn Ferry financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Korn Ferry, including all of Korn Ferry's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Korn Ferry assets, the company is considered highly leveraged. Understanding the composition and structure of overall Korn Ferry debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding Korn Total Debt
Korn Ferry liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Korn Ferry has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Korn Ferry balance sheet include debt obligations and money owed to different Korn Ferry vendors, workers, and loan providers. Below is the chart of Korn main long-term debt accounts currently reported on its balance sheet. You can use Korn Ferry financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Korn Ferry's Liquidity
Korn Ferry financial leverage refers to using borrowed capital as a funding source to finance Korn Ferry ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Korn Ferry financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Korn Ferry's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Korn Ferry's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Korn Ferry's total debt and its cash.
What is driving Korn Ferry Investor Appetite?
Korn Ferry has a beta of -0.1114. Let's try to break down what Korn Ferry's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Korn Ferry will likely underperform. The beta indicator helps investors understand whether Korn Ferry moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Korn Ferry deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The latest price spikes of Korn Ferry may raise some interest from investors. The stock closed today at a share price of 30.15 on 501,116 in trading volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in August. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.75. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Korn Ferry partners. Korn Ferry Earnings Before Interest Taxes and Depreciation Amortization EBITDA is fairly stable at the moment. Also, Korn Ferry Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. The previous year's value of Korn Ferry Earnings Before Interest Taxes and Depreciation Amortization USD was 193,600,332.
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