Verastem Stock Market Value
| VSTM Stock | USD 4.00 0.07 1.78% |
| Symbol | Verastem |
Verastem Price To Book Ratio
Is Biotechnology space 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 Verastem. If investors know Verastem 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 Verastem listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (3.14) | Revenue Per Share 0.331 | Quarterly Revenue Growth (1.00) | Return On Assets (0.47) | Return On Equity (1.37) |
The market value of Verastem is measured differently than its book value, which is the value of Verastem that is recorded on the company's balance sheet. Investors also form their own opinion of Verastem's value that differs from its market value or its book value, called intrinsic value, which is Verastem'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 Verastem's market value can be influenced by many factors that don't directly affect Verastem'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 Verastem's value and its price as these two are different measures arrived at by different means. Investors typically determine if Verastem is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Verastem'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.
Verastem 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Verastem's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Verastem.
| 04/02/2023 |
| 11/22/2024 |
If you would invest 0.00 in Verastem on April 2, 2023 and sell it all today you would earn a total of 0.00 from holding Verastem or generate 0.0% return on investment in Verastem over 600 days. Verastem is related to or competes with Viking Therapeutics, and Karyopharm Therapeutics. Verastem, Inc., a development-stage biopharmaceutical company, focusing on developing and commercializing drugs for the ... More
Verastem Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Verastem's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Verastem upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 5.27 | |||
| Information Ratio | 0.1295 | |||
| Maximum Drawdown | 31.27 | |||
| Value At Risk | (5.69) | |||
| Potential Upside | 11.15 |
Verastem Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Verastem's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Verastem's standard deviation. In reality, there are many statistical measures that can use Verastem historical prices to predict the future Verastem's volatility.| Risk Adjusted Performance | 0.1221 | |||
| Jensen Alpha | 0.7165 | |||
| Total Risk Alpha | 0.094 | |||
| Sortino Ratio | 0.14 | |||
| Treynor Ratio | 0.6922 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Verastem's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Verastem Backtested Returns
Verastem appears to be slightly risky, given 3 months investment horizon. Verastem owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.15, which indicates the firm had a 0.15% return per unit of risk over the last 3 months. By inspecting Verastem's technical indicators, you can evaluate if the expected return of 0.83% is justified by implied risk. Please review Verastem's Coefficient Of Variation of 672.62, semi deviation of 4.69, and Risk Adjusted Performance of 0.1221 to confirm if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Verastem holds a performance score of 11. The entity has a beta of 1.21, which indicates a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Verastem will likely underperform. Please check Verastem's sortino ratio, semi variance, as well as the relationship between the Semi Variance and rate of daily change , to make a quick decision on whether Verastem's existing price patterns will revert.
Auto-correlation | -0.23 |
Weak reverse predictability
Verastem has weak reverse predictability. Overlapping area represents the amount of predictability between Verastem time series from 2nd of April 2023 to 27th of January 2024 and 27th of January 2024 to 22nd of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Verastem price movement. The serial correlation of -0.23 indicates that over 23.0% of current Verastem price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.23 | |
| Spearman Rank Test | -0.02 | |
| Residual Average | 0.0 | |
| Price Variance | 18.17 |
Verastem lagged returns against current returns
Autocorrelation, which is Verastem stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Verastem's stock expected returns. We can calculate the autocorrelation of Verastem returns to help us make a trade decision. For example, suppose you find that Verastem has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Verastem regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Verastem stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Verastem stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Verastem stock over time.
Current vs Lagged Prices |
| Timeline |
Verastem Lagged Returns
When evaluating Verastem's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Verastem stock have on its future price. Verastem autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Verastem autocorrelation shows the relationship between Verastem stock current value and its past values and can show if there is a momentum factor associated with investing in Verastem.
Regressed Prices |
| Timeline |
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Try AI Portfolio ArchitectCheck out Verastem Correlation, Verastem Volatility and Verastem Alpha and Beta module to complement your research on Verastem. To learn how to invest in Verastem Stock, please use our How to Invest in Verastem guide.You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Verastem technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.