RPC Group Plc (LSE:RPC) Quant Signs Reveal Valuation

The Return on Invested Capital (aka ROIC) Score for RPC Group Plc (LSE:RPC) is 4.068510.  The Return on Invested Capital is a ratio that reveals whether a company is profitable or not.  It shows investors and potential investors how well a company is turning their capital into profits.  The ROIC is calculated by dividing the net operating profit (or EBIT) by the employed capital.  The employed capital is calculated by subrating current liabilities from total assets.  Similarly, the Return on Invested Capital Quality ratio is a tool in evaluating the quality of a company’s ROIC over the course of five years. This is calculated by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC.  The ROIC 5 year average is calculated using the five year average EBIT, five year average (net working capital and net fixed assets).  

The ERP5 Rank is an investment tool that analysts use to discover undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of RPC Group Plc (LSE:RPC) is 4508. The lower the ERP5 rank, the more undervalued a company is thought to be.

Value
The Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 of RPC Group Plc (LSE:RPC) is 22. A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company. The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings. Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield. The Value Composite Two of RPC Group Plc (LSE:RPC) is 38.

A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company. The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings. Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield.

Volatility

Stock volatility is a percentage that indicates whether a stock is a desirable purchase. Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year. The Volatility 12m of RPC Group Plc (LSE:RPC) is 26.257100. This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized. The lower the number, a company is thought to have low volatility. The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months. The Volatility 3m of RPC Group Plc (LSE:RPC) is 26.326000. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 26.792400.

Keeping an eye on the all the day to day happenings in the stock market can be quite a task. Investors may need to try to focus in on the most important information when attempting to examine stocks to add to the portfolio. As earnings reports continue to roll in, investors may be taking a deeper look at some of the names that they have on their shortlist. Investors may also be taking a look at future estimates and guidance provided by companies in order to get a feel of how the stock price may be affected in the future. With the equity market still trading at super high levels, investors may be wondering how much higher some stocks in the portfolio can go. Maybe there are a few winners that look like they have peaked, and investors may have to decide whether to cash in or hold out for more gains. Maybe there are a few losers that have been underperforming and need to be cut loose.

RPC Group Plc (LSE:RPC) has a Price to Book ratio of 1.795965. This ratio is calculated by dividing the current share price by the book value per share. Investors may use Price to Book to display how the market portrays the value of a stock. Checking in on some other ratios, the company has a Price to Cash Flow ratio of 9.022946, and a current Price to Earnings ratio of 16.468766. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

Checking in on some valuation rankings, RPC Group Plc (LSE:RPC) has a Value Composite score of 22. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 38.

Watching some historical volatility numbers on shares of RPC Group Plc (LSE:RPC), we can see that the 12 month volatility is presently 26.257100. The 6 month volatility is 26.792400, and the 3 month is spotted at 26.326000. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.

Price Index
We can now take a quick look at some historical stock price index data. RPC Group Plc (LSE:RPC) presently has a 10 month price index of 1.09626. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 1.08994, the 24 month is 1.14861, and the 36 month is 1.44604. Narrowing in a bit closer, the 5 month price index is 0.89356, the 3 month is 0.98802, and the 1 month is currently 1.00365.