Check Point Return On Equity vs. Current Valuation
| 0Y9S Stock | 186.93 1.28 0.69% |
For Check Point profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Check Point to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Check Point Software utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Check Point's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Check Point Software over time as well as its relative position and ranking within its peers.
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Check Point Software Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Check Point's current stock value. Our valuation model uses many indicators to compare Check Point value to that of its competitors to determine the firm's financial worth. Check Point Software is number one stock in return on equity category among its peers. It is rated below average in current valuation category among its peers reporting about 65,615,044,290 of Current Valuation per Return On Equity. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Check Point's earnings, one of the primary drivers of an investment's value.Check Current Valuation vs. Return On Equity
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.
Check Point |
| = | 0.3 |
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.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Check Point |
| = | 19.58 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Check Point Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Check Point, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Check Point will eventually generate negative long term returns. The profitability progress is the general direction of Check Point's change in net profit over the period of time. It can combine multiple indicators of Check Point, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -39.2 M | -37.2 M | |
| Operating Income | 899.1 M | 577.6 M | |
| Income Before Tax | 975.6 M | 622.4 M | |
| Total Other Income Expense Net | 76.5 M | 44.7 M | |
| Net Income | 840.3 M | 517 M | |
| Income Tax Expense | 135.3 M | 105.4 M | |
| Interest Income | 37.9 M | 56.7 M | |
| Net Income Applicable To Common Shares | 937.9 M | 886.8 M |
Check Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Check Point. 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 Check Point 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 Check Point's important profitability drivers and their relationship over time.
Use Check Point 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 Check Point 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 Check Point will appreciate offsetting losses from the drop in the long position's value.Check Point Pair Trading
Check Point Software Pair Trading Analysis
The ability to find closely correlated positions to Check Point could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Check Point 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 Check Point - 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 Check Point Software to buy it.
The correlation of Check Point 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 Check Point moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Check Point Software 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 Check Point 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 Check Point position
In addition to having Check Point 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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Realty Funds
Funds or Etfs investing in real estate backed instruments or issues backed by different types of commercial properties. The Realty Funds theme has 45 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 Realty Funds Theme or any other thematic opportunities.
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Additional Tools for Check Stock Analysis
When running Check Point's price analysis, check to measure Check Point's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Check Point is operating at the current time. Most of Check Point's value examination focuses on studying past and present price action to predict the probability of Check Point's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Check Point's price. Additionally, you may evaluate how the addition of Check Point to your portfolios can decrease your overall portfolio volatility.