Investing in companies with poor financial strength has a higher risk of permanent loss of capital. Link: These companies may deliever higher future returns at reduced risk. To learn more about how the Z-score measures the financial risk of the company, please go here. An Altman Z-score of above 2.99 would be better, indicating safe financial conditions. The reason we think that LiveXLive Media stock might be a value trap is because LiveXLive Media has an Altman Z-score of -0.73, which indicates that the financial condition of the company is in the distressed zone and implies a higher risk of bankruptcy. GF Value for LiveXLive Media is shown in the chart below. At its current price of $3.59 per share and the market cap of $278.4 million, LiveXLive Media stock is believed to be possible value trap. On the other hand, if it is significantly below the GF Value Line, its future return will likely be higher. If the price of a stock is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. It is calculated based on the historical multiples that the stock has traded at, the past business growth and analyst estimates of future business performance.

GuruFocus Value is GuruFocus' estimate of the fair value at which the stock should be traded. The stock of LiveXLive Media ( NAS:LIVX, 30-year Financials) gives every indication of being possible value trap, according to GuruFocus Value calculation.

Livexlive media stock