BG Staffing, Inc. (AMEX:BGSF) has an ERP5 rank of 2204. 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.

There are many traders who think that proper psychology is one of the most important aspects of becoming successful in the stock market. Traders may need to learn how to become confident while overcoming certain fears and dealing with extreme ups and downs. This may not be easy as individuals all draw off of prior experiences at some level. Being able to convert outside success to the stock market may take some work. Traders who are able to overcome previous bias may be on the right path for having the proper mindset when entering the market.

The Q.i. Value of BG Staffing, Inc. (AMEX:BGSF) is 17. 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.

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 BG Staffing, Inc. (AMEX:BGSF) is 0.110844.

The Earnings to Price yield of BG Staffing, Inc. (AMEX:BGSF) is 0.080082.  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 BG Staffing, Inc. (AMEX:BGSF) is 0.088979.  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 BG Staffing, Inc. is 0.050464.

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 BG Staffing, Inc. (AMEX:BGSF) is 0.039188.

Price Index

We can now take a quick look at some historical stock price index data. BG Staffing, Inc. (AMEX:BGSF) presently has a 10 month price index of 0.82423. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 0.78961, the 24 month is 1.33414, and the 36 month is 1.41769. Narrowing in a bit closer, the 5 month price index is 0.92426, the 3 month is 1.13768, and the 1 month is currently 1.05157.

Returns

Looking at some ROIC (Return on Invested Capital) numbers, BG Staffing, Inc. (AMEX:BGSF)’s ROIC is 0.522202. The ROIC 5 year average is 0.476366 and the ROIC Quality ratio is 9.115734. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.

BG Staffing, Inc. (AMEX:BGSF) has a Price to Book ratio of 3.059526. This ratio is calculated by dividing the current share price by the book value per share. Investors may use Price to Book to display how the market portrays the value of a stock. Checking in on some other ratios, the company has a Price to Cash Flow ratio of 8.617884, and a current Price to Earnings ratio of 12.487214. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

BG Staffing, Inc. (AMEX:BGSF) presently has a current ratio of 2.46. The current ratio, also known as the working capital ratio, is a liquidity ratio that displays the proportion of current assets of a business relative to the current liabilities. The ratio is simply calculated by dividing current liabilities by current assets. The ratio may be used to provide an idea of the ability of a certain company to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the company may be more capable of paying back its obligations.

The Price to book ratio is the current share price of a company divided by the book value per share.  The Price to Book ratio for BG Staffing, Inc. AMEX:BGSF is 3.059526.  A lower price to book ratio indicates that the stock might be undervalued.  Similarly, Price to cash flow ratio is another helpful ratio in determining a company’s value.  The Price to Cash Flow for BG Staffing, Inc. (AMEX:BGSF) is 8.617884.  This ratio is calculated by dividing the market value of a company by cash from operating activities.  Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability.  The price to earnings ratio for BG Staffing, Inc. (AMEX:BGSF) is 12.487214. This ratio is found by taking the current share price and dividing by earnings per share.

Active investing may be highly stressful at times. Investors often set up trades with the best intentions, but have the tendency to let too much emotion seep into the situation. When dealing with the emotions of market stress, investors may need to figure out how to keep emotions in check in order to make the right decision. This may come easy to some but much harder for others. Because there is no one right way to trade, investors may have to experience certain scenarios for themselves. Creating a plan from the outset may help the investor when tough decisions need to be made. Keeping cool under pressure is a trait shared by many successful investors. When the investor is focused on a plan or specific trading system, this can make things a bit easier when times get tough.