Denbury Resources Current Valuation vs. EBITDA
| DENDelisted Stock | USD 86.53 0.68 0.79% |
For Denbury Resources profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Denbury Resources to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Denbury Resources utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Denbury Resources's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Denbury Resources over time as well as its relative position and ranking within its peers.
Denbury |
Denbury Resources EBITDA vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Denbury Resources's current stock value. Our valuation model uses many indicators to compare Denbury Resources value to that of its competitors to determine the firm's financial worth. Denbury Resources is rated below average in current valuation category among its peers. It is rated below average in ebitda category among its peers totaling about 0.19 of EBITDA per Current Valuation. The ratio of Current Valuation to EBITDA for Denbury Resources is roughly 5.19 . 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 Denbury Resources' earnings, one of the primary drivers of an investment's value.Denbury Current Valuation vs. Competition
Denbury Resources is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Energy industry is currently estimated at about 93.36 Billion. Denbury Resources holds roughly 4.62 Billion in current valuation claiming about 5% of equities under Energy industry.
Denbury EBITDA vs. Current Valuation
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.
Denbury Resources |
| = | 4.62 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.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Denbury Resources |
| = | 889.2 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Denbury EBITDA Comparison
Denbury Resources is currently under evaluation in ebitda category among its peers.
Denbury Resources Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Denbury Resources, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Denbury Resources will eventually generate negative long term returns. The profitability progress is the general direction of Denbury Resources' change in net profit over the period of time. It can combine multiple indicators of Denbury Resources, 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.
Denbury Inc., an independent energy company, focuses on producing oil from mature oil fields in the Gulf Coast and Rocky Mountain regions. Denbury Inc. was incorporated in 2003 and is headquartered in Plano, Texas. Denbury operates under Oil Gas EP classification in the United States and is traded on New York Stock Exchange. It employs 740 people.
Denbury Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Denbury Resources. 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 Denbury Resources 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 Denbury Resources' important profitability drivers and their relationship over time.
Use Denbury Resources 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 Denbury Resources 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 Denbury Resources will appreciate offsetting losses from the drop in the long position's value.Denbury Resources Pair Trading
Denbury Resources Pair Trading Analysis
The ability to find closely correlated positions to Denbury Resources could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Denbury Resources 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 Denbury Resources - 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 Denbury Resources to buy it.
The correlation of Denbury Resources is a statistical measure of how it moves in relation to other instruments. 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 Denbury Resources moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Denbury Resources 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 Denbury Resources 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.Use Investing Themes to Complement your Denbury Resources position
In addition to having Denbury Resources 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 Electronic Equipment Thematic Idea Now
Electronic Equipment
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Electronic Equipment theme has 61 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 Electronic Equipment Theme or any other thematic opportunities.
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Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Consideration for investing in Denbury Stock
If you are still planning to invest in Denbury Resources check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Denbury Resources' history and understand the potential risks before investing.
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