ABIOMED Return On Equity vs. Current Valuation
Based on the measurements of profitability obtained from ABIOMED's financial statements, ABIOMED may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess ABIOMED's ability to earn profits and add value for shareholders.
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.
For ABIOMED profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ABIOMED to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ABIOMED utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ABIOMED's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ABIOMED over time as well as its relative position and ranking within its peers.
ABIOMED |
ABIOMED Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining ABIOMED's current stock value. Our valuation model uses many indicators to compare ABIOMED value to that of its competitors to determine the firm's financial worth. ABIOMED is number one stock in return on equity category among its peers. It also is the top company in current valuation category among its peers reporting about 89,469,506,305 of Current Valuation per Return On Equity. Comparative valuation analysis is a catch-all technique that is used if you cannot value ABIOMED by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.ABIOMED 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.
ABIOMED |
| = | 0.18 |
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.
ABIOMED |
| = | 16.32 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.
ABIOMED Current Valuation vs Competition
ABIOMED is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Health Care industry is presently estimated at about 546.05 Billion. ABIOMED holds roughly 16.32 Billion in current valuation claiming about 2.99% of equities under Health Care industry.
ABIOMED Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in ABIOMED, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ABIOMED will eventually generate negative long term returns. The profitability progress is the general direction of ABIOMED's change in net profit over the period of time. It can combine multiple indicators of ABIOMED, 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.
Abiomed, Inc. engages in the research, development, and sale of medical devices to assist or replace the pumping function of the failing heart. The company was founded in 1981 and is headquartered in Danvers, Massachusetts. Abiomed operates under Medical Devices classification in the United States and is traded on NASDAQ Exchange. It employs 2003 people.
ABIOMED Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on ABIOMED. 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 ABIOMED 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 ABIOMED's important profitability drivers and their relationship over time.
Use ABIOMED 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 ABIOMED 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 ABIOMED will appreciate offsetting losses from the drop in the long position's value.ABIOMED Pair Trading
ABIOMED Pair Trading Analysis
The ability to find closely correlated positions to ABIOMED could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ABIOMED 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 ABIOMED - 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 ABIOMED to buy it.
The correlation of ABIOMED 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 ABIOMED moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ABIOMED 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 ABIOMED 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 ABIOMED position
In addition to having ABIOMED 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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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 Power Assets Theme or any other thematic opportunities.
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Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Consideration for investing in ABIOMED Stock
If you are still planning to invest in ABIOMED check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the ABIOMED's history and understand the potential risks before investing.
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