T2 Biosystems, Inc. (NasdaqGM:TTOO) has an ERP5 rank of 17687. The ERP5 Rank is an investment tool that analysts use to discover undervalued companies.  The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The lower the ERP5 rank, the more undervalued a company is thought to be.

When the stock portfolio is diversified, there is a good chance that some stocks will be winners and some will be losers. Regularly reviewing portfolio performance can help the investor stay the course. Keeping track of performance can help spot stocks that might no longer be beneficial to the goals of the investor. There may be times after a review where nothing needs to be adjusted, but staying ahead of the curve can put the individual in a good place when the investing waters become choppy.

The Q.i. Value of T2 Biosystems, Inc. (NasdaqGM:TTOO) is 87. 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.

Technicals
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 T2 Biosystems, Inc. (NasdaqGM:TTOO) is -0.265706.

The Earnings to Price yield of T2 Biosystems, Inc. (NasdaqGM:TTOO) is -0.438074.  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 T2 Biosystems, Inc. (NasdaqGM:TTOO) is -0.279054.  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 T2 Biosystems, Inc. is -0.221058.

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 T2 Biosystems, Inc. (NasdaqGM:TTOO) is -0.21873.

Ratios

The Current Ratio of T2 Biosystems, Inc. (NasdaqGM:TTOO) is 0.58. The Current Ratio is used by investors to determine whether a company can pay short term and long term debts. The current ratio looks at all the liquid and non-liquid assets compared to the company’s total current liabilities. A high current ratio indicates that the company might have trouble managing their working capital. A low current ratio (when the current liabilities are higher than the current assets) indicates that the company may have trouble paying their short term obligations.

The Leverage Ratio of T2 Biosystems, Inc. (NasdaqGM:TTOO) is 0.774825.  Leverage ratio is the total debt of a company divided by total assets of the current and past year divided by two.  Companies take on debt to finance their day to day operations.  The leverage ratio can measure how much of a company’s capital comes from debt.  With this ratio, investors can better estimate how well a company will be able to pay their long and short term financial obligations.

The price to book ratio or market to book ratio for T2 Biosystems, Inc. (NasdaqGM:TTOO) currently stands at -8.287637.  The ratio is calculated by dividing the stock price per share by the book value per share.  This ratio is used to determine how the market values the equity.  A ratio of under 1 typically indicates that the shares are undervalued.  A ratio over 1 indicates that the market is willing to pay more for the shares.  There are often many underlying factors that come into play with the Price to Book ratio so all additional metrics should be considered as well. 

Adding it All Up

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength.  The score helps determine if a company’s stock is valuable or not.  The Piotroski F-Score of T2 Biosystems, Inc. (NasdaqGM:TTOO) is 2.  A score of nine indicates a high value stock, while a score of one indicates a low value stock.  The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings.  It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue.  The score is also determined by change in gross margin and change in asset turnover.

The Gross Margin Score is calculated by looking at the Gross Margin and the overall stability of the company over the course of 8 years. The score is a number between one and one hundred (1 being best and 100 being the worst). The Gross Margin Score of T2 Biosystems, Inc. (NasdaqGM:TTOO) is 51. The more stable the company, the lower the score. If a company is less stable over the course of time, they will have a higher score.

As we move closer to the end of the year, investors might be closely monitoring key economic reports. Staying on top of the most recent reports can help the individual see the overall landscape a bit clearer. It may be overwhelming to keep up with every single report that comes out, but knowing which information has a bigger impact on stock investments may help the investor. Investors may already be trying to gauge how they will set themselves up for success over the next couple of quarters. They may be still going over all the latest company earnings reports trying to identify some names that can give the portfolio a boost as we move into the New Year.