GSE Systems Price To Earning vs. Current Valuation
| GVPDelisted Stock | USD 4.59 0.01 0.22% |
For GSE Systems profitability analysis, we use financial ratios and fundamental drivers that measure the ability of GSE Systems to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well GSE Systems utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between GSE Systems's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of GSE Systems over time as well as its relative position and ranking within its peers.
GSE |
GSE Systems Current Valuation vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining GSE Systems's current stock value. Our valuation model uses many indicators to compare GSE Systems value to that of its competitors to determine the firm's financial worth. GSE Systems 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 4,462,167 of Current Valuation per Price To Earning. Comparative valuation analysis is a catch-all technique that is used if you cannot value GSE Systems by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.GSE 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.
GSE Systems |
| = | 3.65 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.
GSE Systems |
| = | 16.29 M |
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.
GSE Current Valuation vs Competition
GSE Systems 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 Information Technology industry is currently estimated at about 251.32 Million. GSE Systems holds roughly 16.29 Million in current valuation claiming about 6% of equities under Information Technology industry.
GSE Systems Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in GSE Systems, profitability is also one of the essential criteria for including it into their portfolios because, without profit, GSE Systems will eventually generate negative long term returns. The profitability progress is the general direction of GSE Systems' change in net profit over the period of time. It can combine multiple indicators of GSE Systems, 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.
GSE Systems, Inc. provides professional and technical engineering, staffing services, and simulation software to the power and process industries in the United States, Asia, Europe, and internationally. The company was founded in 1971 and is headquartered in Columbia, Maryland. GSE Systems operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 286 people.
GSE Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on GSE Systems. 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 GSE Systems 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 GSE Systems' important profitability drivers and their relationship over time.
Use GSE Systems 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 GSE Systems 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 GSE Systems will appreciate offsetting losses from the drop in the long position's value.GSE Systems Pair Trading
GSE Systems Pair Trading Analysis
The ability to find closely correlated positions to GSE Systems could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace GSE Systems 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 GSE Systems - 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 GSE Systems to buy it.
The correlation of GSE Systems 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 GSE Systems moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if GSE Systems 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 GSE Systems 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 GSE Systems position
In addition to having GSE Systems 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 Consumer Goods Thematic Idea Now
Consumer Goods
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Consumer Goods theme has 61 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 Consumer Goods Theme or any other thematic opportunities.
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Check out Risk vs Return Analysis 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 real. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Consideration for investing in GSE Stock
If you are still planning to invest in GSE Systems 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 GSE Systems' history and understand the potential risks before investing.
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