Evolution Return On Equity vs. Price To Book
| EVO Stock | SEK 952.00 23.00 2.36% |
For Evolution profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Evolution to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Evolution AB utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Evolution's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Evolution AB over time as well as its relative position and ranking within its peers.
Evolution |
Evolution AB Price To Book vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Evolution's current stock value. Our valuation model uses many indicators to compare Evolution value to that of its competitors to determine the firm's financial worth. Evolution AB is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in price to book category among its peers fabricating about 24.37 of Price To Book 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 Evolution's earnings, one of the primary drivers of an investment's value.Evolution Price To Book 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.
Evolution |
| = | 0.25 |
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 Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
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| = | 6.18 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Evolution Price To Book Comparison
Evolution is currently under evaluation in price to book category among its peers.
Evolution Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Evolution, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Evolution will eventually generate negative long term returns. The profitability progress is the general direction of Evolution's change in net profit over the period of time. It can combine multiple indicators of Evolution, 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.
Evolution AB develops, produces, markets, and licenses live casino and slots solutions to gaming operators primarily in Europe and the United States. Evolution AB was founded in 2006 and is headquartered in Stockholm, Sweden. Evolution Gaming operates under Entertainment And Broadcasting classification in Sweden and is traded on Stockholm Stock Exchange. It employs 7835 people.
Evolution Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Evolution. 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 Evolution 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 Evolution's important profitability drivers and their relationship over time.
Use Evolution 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 Evolution 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 Evolution will appreciate offsetting losses from the drop in the long position's value.Evolution Pair Trading
Evolution AB Pair Trading Analysis
The ability to find closely correlated positions to Evolution could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Evolution 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 Evolution - 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 Evolution AB to buy it.
The correlation of Evolution 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 Evolution moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Evolution AB 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 Evolution 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 Evolution position
In addition to having Evolution 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 Broad Equity ETFs Thematic Idea Now
Broad Equity ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Broad Equity ETFs theme has 483 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 Broad Equity ETFs Theme or any other thematic opportunities.
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Additional Tools for Evolution Stock Analysis
When running Evolution's price analysis, check to measure Evolution'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 Evolution is operating at the current time. Most of Evolution's value examination focuses on studying past and present price action to predict the probability of Evolution's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Evolution's price. Additionally, you may evaluate how the addition of Evolution to your portfolios can decrease your overall portfolio volatility.