Nordson Stock Beneish M Score
| NDSN Stock | USD 256.58 4.02 1.59% |
Nordson |
At this time, Nordson's M Score is unavailable. The earnings manipulation may begin if Nordson's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Nordson executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Nordson's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-4.84
Beneish M Score - Unavailable
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About Nordson Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Nordson's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Nordson using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Nordson 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.
Pair Trading with Nordson
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Nordson position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nordson will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to Nordson could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nordson when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Nordson - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Nordson to buy it.
The correlation of Nordson is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Nordson moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nordson moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Nordson can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Nordson Piotroski F Score and Nordson Altman Z Score analysis. To learn how to invest in Nordson Stock, please use our How to Invest in Nordson guide.You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Is Machinery 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 Nordson. If investors know Nordson 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 Nordson listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Nordson is measured differently than its book value, which is the value of Nordson that is recorded on the company's balance sheet. Investors also form their own opinion of Nordson's value that differs from its market value or its book value, called intrinsic value, which is Nordson's 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 Nordson's market value can be influenced by many factors that don't directly affect Nordson's 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 Nordson's value and its price as these two are different measures arrived at by different means. Investors typically determine if Nordson is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nordson's 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.