China Medical Current Valuation vs. Net Income
China Medical System Net Income vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining China Medical's current stock value. Our valuation model uses many indicators to compare China Medical value to that of its competitors to determine the firm's financial worth. China Medical System is rated second in current valuation category among its peers. It is rated below average in net income category among its peers making up about 0.79 of Net Income per Current Valuation. The ratio of Current Valuation to Net Income for China Medical System is roughly 1.27 . 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 China Medical's earnings, one of the primary drivers of an investment's value.China Current Valuation vs. Competition
China Medical System is rated second in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Drug Manufacturers—Specialty & Generic industry is currently estimated at about 20.93 Billion. China Medical retains roughly 3.84 Billion in current valuation claiming about 18% of equities under Drug Manufacturers—Specialty & Generic industry.
China Net Income vs. Current Valuation
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.
China Medical |
| = | 3.84 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.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
China Medical |
| = | 3.02 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
China Net Income Comparison
China Medical is currently under evaluation in net income category among its peers.
China Medical Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in China Medical, profitability is also one of the essential criteria for including it into their portfolios because, without profit, China Medical will eventually generate negative long term returns. The profitability progress is the general direction of China Medical's change in net profit over the period of time. It can combine multiple indicators of China Medical, 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.
China Medical System Holdings Limited, an investment holding company, manufactures, sells, markets, and promotes pharmaceutical products in the Peoples Republic of China. China Medical System Holdings Limited is a subsidiary of Treasure Sea Limited. China Medical operates under Drug ManufacturersSpecialty Generic classification in the United States and is traded on OTC Exchange. It employs 5454 people.
China Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on China Medical. 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 China Medical 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 China Medical's important profitability drivers and their relationship over time.
China Medical Earnings per Share Projection vs Actual
Use China Medical 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 China Medical 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 China Medical will appreciate offsetting losses from the drop in the long position's value.China Medical Pair Trading
China Medical System Pair Trading Analysis
The ability to find closely correlated positions to China Medical could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace China Medical 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 China Medical - 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 China Medical System to buy it.
The correlation of China Medical 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 China Medical moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if China Medical System 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 China Medical 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 China Medical position
In addition to having China Medical 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 Copper Thematic Idea Now
Copper
Companies involved in production of copper. The Copper theme has 45 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 Copper 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 unemployment. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Consideration for investing in China Pink Sheet
If you are still planning to invest in China Medical System 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 China Medical's history and understand the potential risks before investing.
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