Golden Ocean Price To Earning vs. Current Valuation
| GOGL Stock | NOK 111.75 10.70 8.74% |
For Golden Ocean profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Golden Ocean to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Golden Ocean Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Golden Ocean's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Golden Ocean Group over time as well as its relative position and ranking within its peers.
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Golden Ocean Group Current Valuation vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Golden Ocean's current stock value. Our valuation model uses many indicators to compare Golden Ocean value to that of its competitors to determine the firm's financial worth. Golden Ocean Group is one of the top stocks in price to earning category among its peers. It also is rated as one of the top companies in current valuation category among its peers reporting about 220,106,698 of Current Valuation per Price To Earning. 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 Golden Ocean's earnings, one of the primary drivers of an investment's value.Golden Current Valuation vs. Price To Earning
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.
Golden Ocean |
| = | 134.86 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.
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.
Golden Ocean |
| = | 29.68 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.
Golden Current Valuation vs Competition
Golden Ocean Group is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Shipping & Ports industry is currently estimated at about 144.06 Billion. Golden Ocean totals roughly 29.68 Billion in current valuation claiming about 21% of equities listed under Shipping & Ports industry.
Golden Ocean Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Golden Ocean, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Golden Ocean will eventually generate negative long term returns. The profitability progress is the general direction of Golden Ocean's change in net profit over the period of time. It can combine multiple indicators of Golden Ocean, 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.
Golden Ocean Group Limited, a shipping company, engages in the transportation of bulk commodities worldwide. As of March 31, 2019, it owned a fleet of 77 vessels comprising 38 Capesize, 27 Panamax, and 2 Ultramax vessels 8 Capesize vessels under operating leases 1 Panamax vessel under a capital lease and 1 Supramax vessel under an operating lease. GOLDEN OCEAN operates under Shipping Ports classification in Norway and is traded on Oslo Stock Exchange. It employs 32 people.
Golden Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Golden Ocean. 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 Golden Ocean 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 Golden Ocean's important profitability drivers and their relationship over time.
Use Golden Ocean 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 Golden Ocean 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 Golden Ocean will appreciate offsetting losses from the drop in the long position's value.Golden Ocean Pair Trading
Golden Ocean Group Pair Trading Analysis
The ability to find closely correlated positions to Golden Ocean could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Golden Ocean 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 Golden Ocean - 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 Golden Ocean Group to buy it.
The correlation of Golden Ocean 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 Golden Ocean moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Golden Ocean Group 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 Golden Ocean 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 Golden Ocean position
In addition to having Golden Ocean 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 Information and Resources on Investing in Golden Stock
When determining whether Golden Ocean Group is a strong investment it is important to analyze Golden Ocean's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Golden Ocean's future performance. For an informed investment choice regarding Golden Stock, refer to the following important reports:Check out Risk vs Return Analysis. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
To fully project Golden Ocean's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Golden Ocean Group 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 Golden Ocean's income statement, its balance sheet, and the statement of cash flows.