GreenSky Z Score vs. Current Valuation

GSKY
 Stock
  

USD 10.20  0.00  0.00%   

For GreenSky profitability analysis, we use financial ratios and fundamental drivers that measure the ability of GreenSky to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well GreenSky utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between GreenSky's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of GreenSky over time as well as its relative position and ranking within its peers. Please check Risk vs Return Analysis.
  
Is GreenSky'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 GreenSky. If investors know GreenSky 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 GreenSky listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of GreenSky is measured differently than its book value, which is the value of GreenSky that is recorded on the company's balance sheet. Investors also form their own opinion of GreenSky's value that differs from its market value or its book value, called intrinsic value, which is GreenSky'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 GreenSky's market value can be influenced by many factors that don't directly affect GreenSky'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 GreenSky's value and its price as these two are different measures arrived at by different means. Investors typically determine GreenSky value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GreenSky'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.

GreenSky Current Valuation vs. Z Score Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining GreenSky's current stock value. Our valuation model uses many indicators to compare GreenSky value to that of its competitors to determine the firm's financial worth.
GreenSky is one of the top stocks in z score category among related companies. It is rated as one of the top companies in current valuation category among related companies reporting about  743,750,000  of Current Valuation per Z Score. . Comparative valuation analysis is a catch-all model that can be used if you cannot value GreenSky by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for GreenSky'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 GreenSky's earnings, one of the primary drivers of an investment's value.

GreenSky Current Valuation vs. Z Score

Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
GreenSky 
Z Score 
 = 
Sum Of  
 
5 Factors 
1.6
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
GreenSky 
Enterprise Value 
 = 
Market Cap + Debt 
-  
Cash 
1.19 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

GreenSky Current Valuation vs Competition

GreenSky is rated as one of the top companies in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Software—Infrastructure industry is currently estimated at about (20.63 Billion). GreenSky adds roughly 1.19 Billion in current valuation claiming only tiny portion of equities listed under Software—Infrastructure industry.

GreenSky Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in GreenSky, profitability is also one of the essential criteria for including it into their portfolios because, without profit, GreenSky will eventually generate negative long term returns. The profitability progress is the general direction of GreenSky's change in net profit over the period of time. It can combine multiple indicators of GreenSky, 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.
GreenSky, Inc., a technology company, that enables promotional financing at the point of sale for merchants, consumers, and bank partners. The company was founded in 2006 and is headquartered in Atlanta, Georgia. Greensky Inc operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 1164 people.

GreenSky Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on GreenSky. 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 GreenSky 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 GreenSky's important profitability drivers and their relationship over time.

Use GreenSky 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 GreenSky 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 GreenSky will appreciate offsetting losses from the drop in the long position's value.

GreenSky Pair Trading

GreenSky Pair Trading Analysis

The ability to find closely correlated positions to GreenSky could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace GreenSky 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 GreenSky - 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 GreenSky to buy it.
The correlation of GreenSky 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 GreenSky moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if GreenSky 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 GreenSky 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 GreenSky position

In addition to having GreenSky 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 Banks Thematic Idea Now

Banks
Banks Theme
Large and small money and credit banks and credit services. The Banks 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 Banks Theme or any other thematic opportunities.
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Please check Risk vs Return Analysis. You can also try Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

Other Tools for GreenSky Stock

When running GreenSky price analysis, check to measure GreenSky'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 GreenSky is operating at the current time. Most of GreenSky's value examination focuses on studying past and present price action to predict the probability of GreenSky's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move GreenSky's price. Additionally, you may evaluate how the addition of GreenSky to your portfolios can decrease your overall portfolio volatility.
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