Farfetch Book Value Per Share vs. Short Ratio

FTCH
 Stock
  

USD 8.88  0.84  8.64%   

For Farfetch profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Farfetch to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Farfetch Ltd Cl utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Farfetch's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Farfetch Ltd Cl over time as well as its relative position and ranking within its peers. Please check Investing Opportunities.
  
Farfetch Price to Sales Ratio is most likely to slightly decrease in the upcoming years. The last year's value of Price to Sales Ratio was reported at 5.40. The current Return on Sales is estimated to increase to 0.74, while Sales per Share is projected to decrease to 5.23. Farfetch Net Income Common Stock is most likely to increase significantly in the upcoming years. The last year's value of Net Income Common Stock was reported at 1.47 Billion. The current Net Income to Non Controlling Interests is estimated to increase to about 6.1 M, while Operating Income is projected to decrease to (488.8 M).

Farfetch Book Value per Share

0.25

Is Farfetch's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Farfetch. If investors know Farfetch will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Farfetch listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
3.7 B
Quarterly Revenue Growth YOY
0.061
Return On Assets
-0.0874
Return On Equity
-5.27
The market value of Farfetch Ltd Cl is measured differently than its book value, which is the value of Farfetch that is recorded on the company's balance sheet. Investors also form their own opinion of Farfetch's value that differs from its market value or its book value, called intrinsic value, which is Farfetch's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Farfetch's market value can be influenced by many factors that don't directly affect Farfetch's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Farfetch's value and its price as these two are different measures arrived at by different means. Investors typically determine Farfetch value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Farfetch's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Farfetch Ltd Cl Short Ratio vs. Book Value Per Share Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Farfetch's current stock value. Our valuation model uses many indicators to compare Farfetch value to that of its competitors to determine the firm's financial worth.
Farfetch Ltd Cl is one of the top stocks in book value per share category among related companies. It is one of the top stocks in short ratio category among related companies . Farfetch Book Value per Share is most likely to slightly decrease in the upcoming years. The last year's value of Book Value per Share was reported at 0.24. Comparative valuation analysis is a catch-all model that can be used if you cannot value Farfetch by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Farfetch's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Farfetch's earnings, one of the primary drivers of an investment's value.

Farfetch Short Ratio vs. Book Value Per Share

Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.
Farfetch 
Book Value per Share 
 = 
Common Equity 
Average Shares 
(0.79) X
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
Short Ratio is typically used by traders and speculators to identify trends in current market sentiment for a particular equity instrument. In its simple terms this ratio shows how many days it will take all current short sellers to cover their positions if the price of a stock begins to rise.
Farfetch 
Short Ratio 
 = 
Short Interest 
Average Trading Volume 
2.58 X
The higher the Short Ratio, the longer it would take to buy back the borrowed shares. In theory, the more short positions are currently outstanding, the faster it will be to cover shorted positions.

Farfetch Short Ratio Comparison

Farfetch is currently under evaluation in short ratio category among related companies.

Farfetch Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Farfetch, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Farfetch will eventually generate negative long term returns. The profitability progress is the general direction of Farfetch's change in net profit over the period of time. It can combine multiple indicators of Farfetch, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Consolidated Income1.5 B1.6 B
Net Income1.5 B1.6 B
Net Income Common Stock1.5 B1.6 B
Net Income to Non Controlling Interests4.1 M6.1 M
Operating Income-476.2 M-488.8 M
Income Tax ExpenseM3.2 M
Farfetch Limited, together with its subsidiaries, provides an online marketplace for luxury fashion goods in the United States, the United Kingdom, and internationally. Farfetch Limited was founded in 2007 and is headquartered in London, the United Kingdom. Farfetch operates under Internet Retail classification in the United States and is traded on New York Stock Exchange. It employs 6464 people.

Farfetch Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Farfetch. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Farfetch position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Farfetch's important profitability drivers and their relationship over time.

Use Farfetch in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Farfetch position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Farfetch will appreciate offsetting losses from the drop in the long position's value.

Farfetch Pair Trading

Farfetch Ltd Cl Pair Trading Analysis

The ability to find closely correlated positions to Farfetch could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Farfetch when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Farfetch - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Farfetch Ltd Cl to buy it.
The correlation of Farfetch is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Farfetch moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Farfetch Ltd Cl moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Farfetch can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Farfetch position

In addition to having Farfetch in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Computers Thematic Idea Now

Computers
Computers Theme
Companies that manufacture and distribute personal and business computers. The Computers theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Computers Theme or any other thematic opportunities.
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Please check Investing Opportunities. Note that the Farfetch Ltd Cl information on this page should be used as a complementary analysis to other Farfetch's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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When running Farfetch Ltd Cl price analysis, check to measure Farfetch's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Farfetch is operating at the current time. Most of Farfetch's value examination focuses on studying past and present price action to predict the probability of Farfetch's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Farfetch's price. Additionally, you may evaluate how the addition of Farfetch to your portfolios can decrease your overall portfolio volatility.
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To fully project Farfetch's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Farfetch Ltd Cl at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Farfetch's income statement, its balance sheet, and the statement of cash flows.
Potential Farfetch investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Farfetch investors may work on each financial statement separately, they are all related. The changes in Farfetch's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Farfetch's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.