Veritone Accounts Payable Turnover is most likely to slightly increase in the upcoming years. The last year's value of Accounts Payable Turnover was reported at 2.17. The current Total Assets Per Share is estimated to increase to 4.34, while Net Income Per Employee is estimated to decrease to (241.8 K). The upcoming quarterly report is expected on the 5th of August 2020. The stock goes through an active upward rally. Today's short post will concentrate on Veritone as your potential position. We will examine if stockholders should continue to be optimistic in Veritone outlook. What is Veritone Target Price Odds to finish over Current Price? In reference to a normal probability distribution, the odds of Veritone to move above the current price in 30 days from now is about 25.36%. The Veritone probability density function shows the probability of Veritone Stock to fall within a particular range of prices over 30 days. Given the investment horizon of 30 days, Veritone has a beta of -0.2499 . This entails as returns on benchmark increase, returns on holding Veritone are expected to decrease at a much lower rate. During the bear market, however, Veritone is likely to outperform the market. In addition to that, the company has an alpha of 3.1505, implying that it can generate a 3.15 percent excess return over DOW after adjusting for the inherited market risk (beta).
Veritone has a beta of -0.2499. Let's try to break down what Veritone'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, Veritone will likely underperform. The beta indicator helps investors understand whether Veritone 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 Veritone deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Veritone. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Veritone
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Veritone's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Veritone. Your research has to be compared to or analyzed against Veritone's peers to derive any actionable benefits. When done correctly, Veritone's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Veritone.
How important is Veritone's Liquidity
Veritone financial leverage refers to using borrowed capital as a funding source to finance Veritone ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Veritone 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 Veritone'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 Veritone'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 Veritone's total debt and its cash.
How is Veritone allocating its cash?
To perform a cash flow analysis of Veritone, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Veritone is receiving and how much cash it distributes out in a given period. The Veritone cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
A Deeper Perspective
Veritone preserves 396.1 m of current valuation. The firm reported previous year revenue of 49.43 M. Net Loss for the year was (58.46 M) with profit before overhead, payroll, taxes, and interest of 32.36 M. The latest price spikes of Veritone may raise some interest from investors as it closed today at a share price of 11.2 on 1,555,300 in trading volume. The company directors and management may have good odds in positioning the company resources to exploit market volatility in August. The stock standard deviation of daily returns for 30 days investing horizon is currently 8.62. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Veritone partners. Veritone PPandE Turnover is decreasing over the last 5 years. The current value of Veritone PPandE Turnover is 14.11. Also, Veritone Earnings Before Interest Taxes and Depreciation Amortization EBITDA is nearly stable at the moment.
Our take on Veritone small drop
Skewness is down to 0.61 as of today. Veritone is displaying above-average volatility of 8.76 over the selected time horizon. Investors should scrutinize Veritone independently to ensure intended market timing strategies are aligned with expectations about Veritone volatility.
Our Final Take On Veritone
Even though few other entities within software—infrastructure industry are still a little expensive, even after the recent corrections, Veritone may offer a potential longer-term growth to stockholders. To conclude, as of 9th of July 2020, our present 30 days 'Buy vs Sell' recommendation on the company is Strong Sell. We believe Veritone is overvalued with below average probability of distress for the next two years. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to exit some or all of your Veritone holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Veritone.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Veritone. Please refer to our Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com