Nanya Technology Price To Earning vs. Return On Equity
| 2408 Stock | TWD 35.85 0.80 2.18% |
For Nanya Technology profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nanya Technology to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nanya Technology Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nanya Technology's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nanya Technology Corp over time as well as its relative position and ranking within its peers.
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Nanya Technology Corp Return On Equity vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Nanya Technology's current stock value. Our valuation model uses many indicators to compare Nanya Technology value to that of its competitors to determine the firm's financial worth. Nanya Technology Corp is rated fourth in price to earning category among its peers. It also is rated fourth in return on equity category among its peers reporting about 0.01 of Return On Equity per Price To Earning. The ratio of Price To Earning to Return On Equity for Nanya Technology Corp is roughly 108.55 . 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 Nanya Technology's earnings, one of the primary drivers of an investment's value.Nanya Return On Equity vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
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| = | 8.89 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
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.
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| = | 0.0819 |
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.
Nanya Return On Equity Comparison
Nanya Technology is currently under evaluation in return on equity category among its peers.
Nanya Technology Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Nanya Technology, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nanya Technology will eventually generate negative long term returns. The profitability progress is the general direction of Nanya Technology's change in net profit over the period of time. It can combine multiple indicators of Nanya Technology, 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.
Nanya Technology Corporation manufactures and sells dynamic random access memory and other memory products in Taiwan and internationally. Nanya Technology Corporation was founded in 1995 and is headquartered in Taoyuan City, Taiwan. NANYA TECHNOLOGY operates under Electronic Components classification in Taiwan and is traded on Taiwan Stock Exchange.
Nanya Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Nanya Technology. 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 Nanya Technology 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 Nanya Technology's important profitability drivers and their relationship over time.
Use Nanya Technology 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 Nanya Technology 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 Nanya Technology will appreciate offsetting losses from the drop in the long position's value.Nanya Technology Pair Trading
Nanya Technology Corp Pair Trading Analysis
The ability to find closely correlated positions to Nanya Technology could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nanya Technology 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 Nanya Technology - 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 Nanya Technology Corp to buy it.
The correlation of Nanya Technology 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 Nanya Technology moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nanya Technology Corp 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 Nanya Technology 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 Nanya Technology position
In addition to having Nanya Technology 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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Additional Tools for Nanya Stock Analysis
When running Nanya Technology's price analysis, check to measure Nanya Technology'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 Nanya Technology is operating at the current time. Most of Nanya Technology's value examination focuses on studying past and present price action to predict the probability of Nanya Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Nanya Technology's price. Additionally, you may evaluate how the addition of Nanya Technology to your portfolios can decrease your overall portfolio volatility.