Japan Post Price To Book vs. Price To Sales
| 5JP Stock | EUR 8.55 0.05 0.58% |
For Japan Post profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Japan Post to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Japan Post Bank utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Japan Post's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Japan Post Bank over time as well as its relative position and ranking within its peers.
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Japan Post Bank Price To Sales vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Japan Post's current stock value. Our valuation model uses many indicators to compare Japan Post value to that of its competitors to determine the firm's financial worth. Japan Post Bank is number one stock in price to book category among its peers. It is rated fifth in price to sales category among its peers fabricating about 0.05 of Price To Sales per Price To Book. The ratio of Price To Book to Price To Sales for Japan Post Bank is roughly 21.71 . 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 Japan Post's earnings, one of the primary drivers of an investment's value.Japan Price To Sales vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
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| = | 0.40 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
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| = | 0.02 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Japan Price To Sales Comparison
Japan Post is currently under evaluation in price to sales category among its peers.
Japan Post Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Japan Post, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Japan Post will eventually generate negative long term returns. The profitability progress is the general direction of Japan Post's change in net profit over the period of time. It can combine multiple indicators of Japan Post, 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.
JAPAN POST BANK Co., Ltd. provides various banking products and services to retail and corporate clients in Japan and internationally. JAPAN POST BANK Co., Ltd. is a subsidiary of JAPAN POST HOLDINGS Co., Ltd. JAPAN POST operates under Banks - Regional - Asia classification in Germany and is traded on Frankfurt Stock Exchange. It employs 12821 people.
Japan Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Japan Post. 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 Japan Post 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 Japan Post's important profitability drivers and their relationship over time.
Use Japan Post 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 Japan Post 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 Japan Post will appreciate offsetting losses from the drop in the long position's value.Japan Post Pair Trading
Japan Post Bank Pair Trading Analysis
The ability to find closely correlated positions to Japan Post could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Japan Post 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 Japan Post - 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 Japan Post Bank to buy it.
The correlation of Japan Post 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 Japan Post moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Japan Post Bank 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 Japan Post 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 Japan Post position
In addition to having Japan Post 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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Other Information on Investing in Japan Stock
To fully project Japan Post's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Japan Post Bank 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 Japan Post's income statement, its balance sheet, and the statement of cash flows.