QAD Z Score vs. Book Value Per Share

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

QAD Inc Book Value Per Share vs. Z Score Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining QAD's current stock value. Our valuation model uses many indicators to compare QAD value to that of its competitors to determine the firm's financial worth.
QAD Inc is currently regarded as top stock in z score category among related companies. It is rated below average in book value per share category among related companies creating about  0.15  of Book Value Per Share per Z Score. The ratio of Z Score to Book Value Per Share for QAD Inc is roughly  6.59 . Comparative valuation analysis is a catch-all model that can be used if you cannot value QAD by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for QAD'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 QAD's earnings, one of the primary drivers of an investment's value.

QAD Book Value Per Share 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..
QAD 
Z Score 
 = 
Sum Of  
 
5 Factors 
42.4
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.
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.
QAD 
Book Value per Share 
 = 
Common Equity 
Average Shares 
6.43 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.

QAD Book Value Per Share Comparison

QAD is currently under evaluation in book value per share category among related companies.

QAD Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in QAD, profitability is also one of the essential criteria for including it into their portfolios because, without profit, QAD will eventually generate negative long term returns. The profitability progress is the general direction of QAD's change in net profit over the period of time. It can combine multiple indicators of QAD, 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.
QAD Inc., together with its subsidiaries, provides cloud-based enterprise software solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. QAD Inc. was founded in 1979 and is headquartered in Santa Barbara, California. Q A operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 1930 people.

QAD Profitability Driver Comparison

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

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

QAD Pair Trading

QAD Inc Pair Trading Analysis

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

In addition to having QAD 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.

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Run Data Storage Thematic Idea Now

Data Storage
Data Storage Theme
Companies making data storages or providing data storage services. The Data Storage 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 Data Storage Theme or any other thematic opportunities.
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Check out Your Equity Center. Note that the QAD Inc information on this page should be used as a complementary analysis to other QAD'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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

Other Tools for QAD Stock

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