In looking at the Value Composite score for NRG Energy, Inc. (NYSE:NRG), we see that the firm has a rank of 28. This is based on a 0 to 100 scale where a lower score indicated an undervalued company and a higher score would indicate an expensive or overvalued company. This rank was developed by James O’Shaughnessy in 2011. The score is derived from five different valuation ratios including price to book value, price to sales, EBITDA to Enterprise Value, price to cash flow and price to earnings.
Going further we can also look at the Q.i. (Liquidity) value of the stock. A the time of writing, NRG Energy, Inc. (NYSE:NRG) has a Q.i. score of 36.00000. This ranking system is calculated using the following ratio indicators: EBITDA yield, Earnings yield, FCF Yield and Liquidity (Q.i). This is a valuable indicator that can also help uncover undervalued companies. A stock with a 0-20% score indicates that the stock has a high value and low turnover, which results in a better chance of a stock being mispriced. A lower valued company would yield a score between 80-100%. This would indicate that the firm has large analyst interest and the chance of the stock being mispriced is much lower.
In looking at the Piotroski F-score for NRG Energy, Inc. (NYSE:NRG) we note that it has a score of 4. This score was developed by Joseph Piotroski, an accounting professor who used a combination of ratios to combine the profitability, Funding and efficiency. The score is based on a 1 to 9 scale where companies with the purpose of discovering low price to book ratios. Investing in companies with only a 8 or 9 score yielding over 13% returns over a 20 year period for the professor. As such, a higher score (8-9) indicates that the stock is at attractive levels where a low score (0-2) would indicate a poor result.
Shares of NRG Energy, Inc. (NYSE:NRG) have a six month price index return of $0.89218. Quickly looking at the recent volatility of the stock we can see that the 12 month number stands at 47.311300. The 6 month volatility stands at 46.257800 and the 3 month stands at 49.492800. This percentage is based on weekly log normal returns and standard deviation of the share price over the time period specified.