A Look at Valuation For Shares of MGP Ingredients, Inc. (NasdaqGS:MGPI) as VC Reaches 58

The Value Composite 2 (VC2) is a ranking system that is calculated by using the price to book value, price to sales, EBITDA to EV, price to cash flow, price to earnings and shareholder yield. The Value Composite Two of MGP Ingredients, Inc. (NasdaqGS:MGPI) is 58.   Similarly, the Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 is calculated using the same metrics as VC2, but without taking into consideration shareholder yield. The VC1 of MGP Ingredients, Inc. (NasdaqGS:MGPI) is 53.  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. 

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MGP Ingredients, Inc. (NasdaqGS:MGPI) has a current MF Rank of 5260. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks. MGP Ingredients, Inc. has a current ERP5 Rank of 7103. The ERP5 Rank may assist investors with spotting companies that are undervalued. This ranking uses four ratios. These ratios are Earnings Yield, ROIC, Price to Book, and 5 year average ROIC. When looking at the ERP5 ranking, it is generally considered the lower the value, the better.

Watching some historical volatility numbers on shares of MGP Ingredients, Inc. (NasdaqGS:MGPI), we can see that the 12 month volatility is presently 45.305900. The 6 month volatility is 66.564400, and the 3 month is spotted at 72.307100. 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. 

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We can now take a quick look at some historical stock price index data. MGP Ingredients, Inc. (NasdaqGS:MGPI) presently has a 10 month price index of 0.71860. 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 0.64358, the 24 month is 0.88137, and the 36 month is 1.31464. Narrowing in a bit closer, the 5 month price index is 0.57495, the 3 month is 0.80403, and the 1 month is currently 1.10851.

Valuation Scores

At the time of writing, MGP Ingredients, Inc. (NasdaqGS:MGPI) has a Piotroski F-Score of 4. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.

MGP Ingredients, Inc. has an M-score Beneish of -2.031800. This M-score model was developed by Messod Beneish in order to detect manipulation of financial statements. The score uses a combination of eight different variables. The specifics of the variables and formula can be found in the Beneish paper “The Detection of Earnings Manipulation”.

Investors may be interested in viewing the Gross Margin score on shares of MGP Ingredients, Inc. (NasdaqGS:MGPI). The name currently has a score of 7.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative.

Shifting gears, we can see that MGP Ingredients, Inc. (NasdaqGS:MGPI) has a Q.i. Value of 43.00000. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The purpose of the Q.i. Value is to help identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the company tends to be.

Stock market investing can sometimes cause investors heads to spin. Following stocks on a daily basis, it is plain to see the amount of coverage that follows certain companies. This non-stop barrage of information may eventually become overwhelming for the novice investor. Filtering through all the data may involve taking a look at a company or stock from multiple angles. There are many investors out there that preach strictly following fundamental data. There are others that swear by the technical analysis. Many investors will opt to employ a research strategy that involves pieces of the two approaches. Knowing every little detail about a company may not be overly necessary, but it may help provide a bit more direction when navigating the stock market maze. Investors who put in the time to study all the fundamentals may want to also start watching the charts on stock that they are thinking about adding to the portfolio. Making sure that no stone is left unturned when examining a stock may end up being the difference between a big winner and a big loser.