Definitive Healthcare Return On Asset vs. Current Valuation

DH Stock  USD 4.73  0.07  1.50%   
Based on the measurements of profitability obtained from Definitive Healthcare's financial statements, Definitive Healthcare Corp may not be well positioned to generate adequate gross income at this time. It has a very high odds of underperforming in January. Profitability indicators assess Definitive Healthcare's ability to earn profits and add value for shareholders. As of now, Definitive Healthcare's Days Sales Outstanding is decreasing as compared to previous years. The Definitive Healthcare's current Operating Cash Flow Sales Ratio is estimated to increase to 0.20, while Price To Sales Ratio is projected to decrease to 4.24. As of now, Definitive Healthcare's Total Other Income Expense Net is increasing as compared to previous years. The Definitive Healthcare's current Interest Income is estimated to increase to about 14.3 M, while Accumulated Other Comprehensive Income is projected to decrease to under 1.3 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.580.8111
Way Down
Slightly volatile
For Definitive Healthcare profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Definitive Healthcare to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Definitive Healthcare Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Definitive Healthcare's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Definitive Healthcare Corp over time as well as its relative position and ranking within its peers.
  

Definitive Healthcare's Revenue Breakdown by Earning Segment

Check out Investing Opportunities.
Is Health Care Technology 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 Definitive Healthcare. If investors know Definitive 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 Definitive Healthcare listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(3.09)
Revenue Per Share
2.187
Quarterly Revenue Growth
(0.04)
Return On Assets
(0.01)
Return On Equity
(0.55)
The market value of Definitive Healthcare is measured differently than its book value, which is the value of Definitive that is recorded on the company's balance sheet. Investors also form their own opinion of Definitive Healthcare's value that differs from its market value or its book value, called intrinsic value, which is Definitive Healthcare'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 Definitive Healthcare's market value can be influenced by many factors that don't directly affect Definitive Healthcare'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 Definitive Healthcare's value and its price as these two are different measures arrived at by different means. Investors typically determine if Definitive Healthcare is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Definitive Healthcare'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.

Definitive Healthcare Current Valuation vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Definitive Healthcare's current stock value. Our valuation model uses many indicators to compare Definitive Healthcare value to that of its competitors to determine the firm's financial worth.
Definitive Healthcare Corp is rated below average in return on asset category among its peers. It also is rated below average in current valuation category among its peers . 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 Definitive Healthcare's earnings, one of the primary drivers of an investment's value.

Definitive Healthcare's Earnings Breakdown by Geography

Definitive Current Valuation vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Definitive Healthcare

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.0076
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
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.

Definitive Healthcare

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
498.22 M
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.

Definitive Current Valuation vs Competition

Definitive Healthcare Corp is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Health Care industry is currently estimated at about 20.7 Billion. Definitive Healthcare holds roughly 498.22 Million in current valuation claiming about 2.41% of equities under Health Care industry.

Definitive Healthcare Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Definitive Healthcare, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Definitive Healthcare will eventually generate negative long term returns. The profitability progress is the general direction of Definitive Healthcare's change in net profit over the period of time. It can combine multiple indicators of Definitive Healthcare, 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income2.1 M1.3 M
Operating Income-329.8 M-313.3 M
Income Before Tax-308.2 M-292.8 M
Total Other Income Expense Net21.6 M22.7 M
Net Loss-6.9 M-7.3 M
Net Loss-202.4 M-192.3 M
Income Tax Expense-18.6 M-17.6 M
Net Interest Income-2.9 M-3.1 M
Net Loss-268.5 M-255 M
Interest Income13.6 M14.3 M
Non Operating Income Net Other-32 M-33.6 M
Change To Netincome-2.6 M-2.4 M
Net Loss(1.79)(1.71)
Income Quality(0.20)(0.21)
Net Income Per E B T 0.66  1.09 

Definitive Profitability Driver Comparison

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

Learn to be your own money manager

Our tools can tell you how much better you can do entering a position in Definitive Healthcare without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

Did you try this?

Run Fundamentals Comparison Now

   

Fundamentals Comparison

Compare fundamentals across multiple equities to find investing opportunities
All  Next Launch Module

Use Investing Themes to Complement your Definitive Healthcare position

In addition to having Definitive Healthcare 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 Small Value Funds Thematic Idea Now

Small Value Funds
Small Value Funds Theme
Funds or Etfs that invest in the undervalued stocks of small to mid-sized companies. The Small Value Funds theme has 37 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 Small Value Funds Theme or any other thematic opportunities.
View All  Next Launch
Check out Investing Opportunities.
You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
To fully project Definitive Healthcare's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Definitive Healthcare at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Definitive Healthcare's income statement, its balance sheet, and the statement of cash flows.
Potential Definitive Healthcare investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Definitive Healthcare investors may work on each financial statement separately, they are all related. The changes in Definitive Healthcare's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Definitive Healthcare's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.