Afarak Group Return On Equity vs. Price To Earning
| AFAGR Stock | EUR 0.25 0.01 3.85% |
For Afarak Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Afarak Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Afarak Group Oyj utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Afarak Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Afarak Group Oyj over time as well as its relative position and ranking within its peers.
Afarak |
Afarak Group Oyj Price To Earning vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Afarak Group's current stock value. Our valuation model uses many indicators to compare Afarak Group value to that of its competitors to determine the firm's financial worth. Afarak Group Oyj is number one stock in return on equity category among its peers. It also is number one stock in price to earning category among its peers reporting about 462.43 of Price To Earning per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Afarak Group by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Afarak Group's 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.Afarak Price To Earning 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.
Afarak Group |
| = | 0.43 |
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.
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.
Afarak Group |
| = | 200.00 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.
Afarak Price To Earning Comparison
Afarak Group is currently under evaluation in price to earning category among its peers.
Afarak Group Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Afarak Group, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Afarak Group will eventually generate negative long term returns. The profitability progress is the general direction of Afarak Group's change in net profit over the period of time. It can combine multiple indicators of Afarak Group, 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.
Afarak Group Oyj engages in production and supply of chrome products worldwide. Afarak Group Oyj was founded in 1984 and is based in Helsinki, Finland. Afarak Group operates under Industrial Metals Minerals classification in Finland and is traded on Helsinki Exchange. It employs 1052 people.
Afarak Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Afarak Group. 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 Afarak Group 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 Afarak Group's important profitability drivers and their relationship over time.
Use Afarak Group 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 Afarak Group 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 Afarak Group will appreciate offsetting losses from the drop in the long position's value.Afarak Group Pair Trading
Afarak Group Oyj Pair Trading Analysis
The ability to find closely correlated positions to Afarak Group could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Afarak Group 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 Afarak Group - 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 Afarak Group Oyj to buy it.
The correlation of Afarak Group 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 Afarak Group moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Afarak Group Oyj 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 Afarak Group 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 Afarak Group position
In addition to having Afarak Group 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?
Run Health Management Thematic Idea Now
Health Management
Major hospitals and healthcare providers. The Health Management theme has 46 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 Health Management Theme or any other thematic opportunities.
| View All Next | Launch |
Other Information on Investing in Afarak Stock
To fully project Afarak Group's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Afarak Group Oyj 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 Afarak Group's income statement, its balance sheet, and the statement of cash flows.