Reven Housing REIT, Inc. (NasdaqCM:RVEN) Valuation Review & Update

Reven Housing REIT, Inc. (NasdaqCM:RVEN) has an ERP5 rank of 11209. The ERP5 Rank is an investment tool that analysts use to discover undervalued companies.  It looks at the stock’s Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The lower the rank, the more undervalued a company is considered to be.  

As the second half of the year has approached, investors may be doing a deep dive into the portfolio to see what has worked and what hasn’t worked so far this year. Investors may be looking to make a complete overhaul or just a few minor tweaks. The big question seems to be whether or not the market will remain solid of the next couple of quarters. There are obviously those who think a stock market collapse is imminent, and those who believe the market is bound for newer, greater heights. Being prepared for any scenario will most likely be greatly beneficial to individual investors over the next few months. 

Technicals & Ratios

The EBITDA Yield is a great way to determine a company’s profitability. This number is calculated by dividing a company’s earnings before interest, taxes, depreciation and amortization by the company’s enterprise value. Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The EBITDA Yield for Reven Housing REIT, Inc. (NasdaqCM:RVEN) is 0.011504.

The Earnings to Price yield of Reven Housing REIT, Inc. (NasdaqCM:RVEN) is -0.03414.  This is calculated by taking the earnings per share and dividing it by the last closing share price.  This is one of the most popular methods investors use to evaluate a company’s financial performance.  Earnings Yield is calculated by taking the operating income or earnings before interest and taxes (EBIT) and dividing it by the Enterprise Value of the company.  The Earnings Yield for Reven Housing REIT, Inc. (NasdaqCM:RVEN) is -0.009653.  

Earnings Yield helps investors measure the return on investment for a given company.  Similarly, the Earnings Yield Five Year Average is the five year average operating income or EBIT divided by the current enterprise value.  The Earnings Yield Five Year average for Reven Housing REIT, Inc. is -0.007716.

FCF Yield 5yr Avg

The FCF Yield 5yr Average is calculated by taking the five year average free cash flow of a company, and dividing it by the current enterprise value. Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The average FCF of a company is determined by looking at the cash generated by operations of the company. The Free Cash Flow Yield 5 Year Average of Reven Housing REIT, Inc. (NasdaqCM:RVEN) is -0.0044.

Q.i. Value

The Q.i. Value of Reven Housing REIT, Inc. (NasdaqCM:RVEN) is 50. The Q.i. Value is another helpful tool in determining if a company is undervalued or not. The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity. The lower the Q.i. value, the more undervalued the company is thought to be.

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