China Longyuan Current Valuation vs. Return On Equity

CLPXFDelisted Stock  USD 0.98  0.00  0.00%   
Considering China Longyuan's profitability and operating efficiency indicators, China Longyuan Power may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess China Longyuan's ability to earn profits and add value for shareholders.
For China Longyuan profitability analysis, we use financial ratios and fundamental drivers that measure the ability of China Longyuan to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well China Longyuan Power utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between China Longyuan's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of China Longyuan Power over time as well as its relative position and ranking within its peers.
  
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 interest.
Please note, there is a significant difference between China Longyuan's value and its price as these two are different measures arrived at by different means. Investors typically determine if China Longyuan is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, China Longyuan's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

China Longyuan Power Return On Equity vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining China Longyuan's current stock value. Our valuation model uses many indicators to compare China Longyuan value to that of its competitors to determine the firm's financial worth.
China Longyuan Power is the top company in current valuation category among its peers. It also is number one stock in return on equity category among its peers . The ratio of Current Valuation to Return On Equity for China Longyuan Power is about  340,832,345,573 . 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 Longyuan's earnings, one of the primary drivers of an investment's value.

China Current Valuation vs. Competition

China Longyuan Power is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Utilities—Renewable industry is currently estimated at about 129.22 Billion. China Longyuan totals roughly 28.87 Billion in current valuation claiming about 22% of Utilities—Renewable industry.

China Return On Equity 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 Longyuan

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
28.87 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.
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.

China Longyuan

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0847
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.

China Return On Equity Comparison

China Longyuan is currently under evaluation in return on equity category among its peers.

China Longyuan Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in China Longyuan, profitability is also one of the essential criteria for including it into their portfolios because, without profit, China Longyuan will eventually generate negative long term returns. The profitability progress is the general direction of China Longyuan's change in net profit over the period of time. It can combine multiple indicators of China Longyuan, 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 Longyuan Power Group Corporation Limited generates and sells wind and coal power in the Peoples Republic of China. China Longyuan Power Group Corporation Limited operates as a subsidiary of China Energy Investment Corporation Limited. China Longyuan operates under UtilitiesRenewable classification in the United States and is traded on OTC Exchange. It employs 8455 people.

China Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on China Longyuan. 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 Longyuan 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 Longyuan's important profitability drivers and their relationship over time.

Use China Longyuan 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 Longyuan 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 Longyuan will appreciate offsetting losses from the drop in the long position's value.

China Longyuan Pair Trading

China Longyuan Power Pair Trading Analysis

The ability to find closely correlated positions to China Longyuan 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 Longyuan 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 Longyuan - 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 Longyuan Power to buy it.
The correlation of China Longyuan 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 Longyuan moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if China Longyuan Power 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 Longyuan 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your China Longyuan position

In addition to having China Longyuan 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 Synthetics Thematic Idea Now

Synthetics
Synthetics Theme
Companies involved in production of silicon and other synthetic products . The Synthetics theme has 42 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 Synthetics 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 interest.
You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.

Other Consideration for investing in China Pink Sheet

If you are still planning to invest in China Longyuan Power 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 Longyuan's history and understand the potential risks before investing.
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