Esker SA Return On Equity vs. Price To Earning
| ALESK Stock | EUR 260.40 0.80 0.31% |
For Esker SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Esker SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Esker SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Esker SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Esker SA over time as well as its relative position and ranking within its peers.
Esker |
Esker SA Price To Earning vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Esker SA's current stock value. Our valuation model uses many indicators to compare Esker SA value to that of its competitors to determine the firm's financial worth. Esker SA 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 825.24 of Price To Earning 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 Esker SA's earnings, one of the primary drivers of an investment's value.Esker 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.
Esker SA |
| = | 0.21 |
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.
Esker SA |
| = | 169.34 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.
Esker Price To Earning Comparison
Esker SA is currently under evaluation in price to earning category among its peers.
Esker SA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Esker SA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Esker SA will eventually generate negative long term returns. The profitability progress is the general direction of Esker SA's change in net profit over the period of time. It can combine multiple indicators of Esker SA, 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.
Esker SA provides document processing automation solutions in France and internationally. Esker SA was founded in 1985 and is headquartered in Lyon, France. ESKER operates under SoftwareApplication classification in France and is traded on Paris Stock Exchange. It employs 759 people.
Esker Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Esker SA. 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 Esker SA 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 Esker SA's important profitability drivers and their relationship over time.
Use Esker SA 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 Esker SA 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 Esker SA will appreciate offsetting losses from the drop in the long position's value.Esker SA Pair Trading
Esker SA Pair Trading Analysis
The ability to find closely correlated positions to Esker SA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Esker SA 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 Esker SA - 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 Esker SA to buy it.
The correlation of Esker SA 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 Esker SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Esker SA 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 Esker SA 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 Esker SA position
In addition to having Esker SA 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 Esker Stock Analysis
When running Esker SA's price analysis, check to measure Esker SA'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 Esker SA is operating at the current time. Most of Esker SA's value examination focuses on studying past and present price action to predict the probability of Esker SA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Esker SA's price. Additionally, you may evaluate how the addition of Esker SA to your portfolios can decrease your overall portfolio volatility.