Revolution Medicines Stock Beta
| RVMD Stock | USD 45.42 0.76 1.65% |
Revolution Medicines fundamentals help investors to digest information that contributes to Revolution Medicines' financial success or failures. It also enables traders to predict the movement of Revolution Stock. The fundamental analysis module provides a way to measure Revolution Medicines' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Revolution Medicines stock.
Revolution | Beta |
Revolution Medicines Company Beta Analysis
Revolution Medicines' Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Current Revolution Medicines Beta | 1.43 |
Most of Revolution Medicines' fundamental indicators, such as Beta, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Revolution Medicines is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Revolution Beta Driver Correlations
Understanding the fundamental principles of building solid financial models for Revolution Medicines is extremely important. It helps to project a fair market value of Revolution Stock properly, considering its historical fundamentals such as Beta. Since Revolution Medicines' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Revolution Medicines' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Revolution Medicines' interrelated accounts and indicators.
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In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
| Competition |
In accordance with the recently published financial statements, Revolution Medicines has a Beta of 1.433. This is 66.63% higher than that of the Biotechnology sector and 3.09% higher than that of the Health Care industry. The beta for all United States stocks is notably lower than that of the firm.
Revolution Beta Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Revolution Medicines' direct or indirect competition against its Beta to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Revolution Medicines could also be used in its relative valuation, which is a method of valuing Revolution Medicines by comparing valuation metrics of similar companies.Revolution Medicines is currently under evaluation in beta category among its peers.
Revolution Medicines Current Valuation Drivers
We derive many important indicators used in calculating different scores of Revolution Medicines from analyzing Revolution Medicines' financial statements. These drivers represent accounts that assess Revolution Medicines' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Revolution Medicines' important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 1.7B | 2.6B | 1.8B | 1.9B | 3.2B | 3.4B | |
| Enterprise Value | 1.7B | 2.6B | 1.8B | 1.8B | 2.6B | 1.4B |
Revolution Medicines ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Revolution Medicines' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Revolution Medicines' managers, analysts, and investors.Environmental | Governance | Social |
Revolution Medicines Institutional Holders
Institutional Holdings refers to the ownership stake in Revolution Medicines that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Revolution Medicines' outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Revolution Medicines' value.| Shares | State Street Corp | 2024-06-30 | 5.1 M | Bellevue Group Ag | 2024-06-30 | 5 M | Hhg Plc | 2024-06-30 | 4.6 M | Casdin Capital, Llc | 2024-06-30 | 4.4 M | Boxer Capital Llc | 2024-06-30 | 4.3 M | Geode Capital Management, Llc | 2024-06-30 | 3.3 M | Woodline Partners Lp | 2024-06-30 | 3.3 M | Jpmorgan Chase & Co | 2024-06-30 | 3.1 M | Deerfield Management Co | 2024-06-30 | 3.1 M | Vanguard Group Inc | 2024-06-30 | 14.4 M | Wellington Management Company Llp | 2024-06-30 | 13.7 M |
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Revolution Medicines will likely underperform.
Revolution Fundamentals
| Return On Equity | -0.41 | ||||
| Return On Asset | -0.25 | ||||
| Operating Margin | (775.25) % | ||||
| Current Valuation | 6.08 B | ||||
| Shares Outstanding | 167.04 M | ||||
| Shares Owned By Insiders | 2.34 % | ||||
| Shares Owned By Institutions | 97.66 % | ||||
| Number Of Shares Shorted | 16.51 M | ||||
| Price To Book | 4.68 X | ||||
| Price To Sales | 10,225 X | ||||
| Revenue | 11.58 M | ||||
| Gross Profit | (217.69 M) | ||||
| EBITDA | (477.88 M) | ||||
| Net Income | (436.37 M) | ||||
| Cash And Equivalents | 461.43 M | ||||
| Cash Per Share | 5.26 X | ||||
| Total Debt | 87.94 M | ||||
| Debt To Equity | 0.13 % | ||||
| Current Ratio | 7.60 X | ||||
| Book Value Per Share | 9.77 X | ||||
| Cash Flow From Operations | (350.57 M) | ||||
| Short Ratio | 17.40 X | ||||
| Earnings Per Share | (3.72) X | ||||
| Target Price | 59.62 | ||||
| Number Of Employees | 443 | ||||
| Beta | 1.43 | ||||
| Market Capitalization | 7.59 B | ||||
| Total Asset | 2.09 B | ||||
| Retained Earnings | (1.14 B) | ||||
| Working Capital | 1.74 B | ||||
| Net Asset | 2.09 B |
About Revolution Medicines Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Revolution Medicines's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Revolution Medicines using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Revolution Medicines based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Additional Information and Resources on Investing in Revolution Stock
When determining whether Revolution Medicines is a strong investment it is important to analyze Revolution Medicines' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Revolution Medicines' future performance. For an informed investment choice regarding Revolution Stock, refer to the following important reports:Check out Revolution Medicines Piotroski F Score and Revolution Medicines Altman Z Score analysis. For information on how to trade Revolution Stock refer to our How to Trade Revolution Stock guide.You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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 Revolution Medicines. If investors know Revolution 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 Revolution Medicines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (3.72) | Revenue Per Share 0.005 | Quarterly Revenue Growth (0.95) | Return On Assets (0.25) | Return On Equity (0.41) |
The market value of Revolution Medicines is measured differently than its book value, which is the value of Revolution that is recorded on the company's balance sheet. Investors also form their own opinion of Revolution Medicines' value that differs from its market value or its book value, called intrinsic value, which is Revolution Medicines' 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 Revolution Medicines' market value can be influenced by many factors that don't directly affect Revolution Medicines' 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 Revolution Medicines' value and its price as these two are different measures arrived at by different means. Investors typically determine if Revolution Medicines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Revolution Medicines' 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.