POSCO Holdings EBITDA vs. Return On Equity
| 005490 Stock | 282,500 13,000 4.40% |
For POSCO Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of POSCO Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well POSCO Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between POSCO Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of POSCO Holdings over time as well as its relative position and ranking within its peers.
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POSCO Holdings Return On Equity vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining POSCO Holdings's current stock value. Our valuation model uses many indicators to compare POSCO Holdings value to that of its competitors to determine the firm's financial worth. POSCO Holdings is number one stock in ebitda category among its peers. It also is number one stock in return on equity category among its peers . The ratio of EBITDA to Return On Equity for POSCO Holdings is about Huge . Comparative valuation analysis is a catch-all model that can be used if you cannot value POSCO Holdings by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for POSCO Holdings' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.POSCO Return On Equity vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
POSCO Holdings |
| = | 15.76 T |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
POSCO Holdings |
| = | 0.1 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
POSCO Return On Equity Comparison
POSCO Holdings is currently under evaluation in return on equity category among its peers.
POSCO Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on POSCO Holdings. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of POSCO Holdings position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the POSCO Holdings' important profitability drivers and their relationship over time.
Use POSCO Holdings in pair-trading
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 POSCO Holdings 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 POSCO Holdings will appreciate offsetting losses from the drop in the long position's value.POSCO Holdings Pair Trading
POSCO Holdings Pair Trading Analysis
The ability to find closely correlated positions to POSCO Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace POSCO Holdings 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 POSCO Holdings - 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 POSCO Holdings to buy it.
The correlation of POSCO Holdings 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 POSCO Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if POSCO Holdings 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 POSCO Holdings 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.Use Investing Themes to Complement your POSCO Holdings position
In addition to having POSCO Holdings in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Mid Cap ETFs theme has 70 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Mid Cap ETFs Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in POSCO Stock
When determining whether POSCO Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of POSCO Holdings' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Posco Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Posco Holdings Stock:Check out Trending Equities. For information on how to trade POSCO Stock refer to our How to Trade POSCO Stock guide.You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
To fully project POSCO Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of POSCO Holdings at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include POSCO Holdings' income statement, its balance sheet, and the statement of cash flows.