IShares Biotechnology Price To Earning vs. Beta
| IBB Etf | USD 141.55 0.04 0.03% |
For IShares Biotechnology profitability analysis, we use financial ratios and fundamental drivers that measure the ability of IShares Biotechnology to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well iShares Biotechnology ETF utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between IShares Biotechnology's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of iShares Biotechnology ETF over time as well as its relative position and ranking within its peers.
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The market value of iShares Biotechnology ETF is measured differently than its book value, which is the value of IShares that is recorded on the company's balance sheet. Investors also form their own opinion of IShares Biotechnology's value that differs from its market value or its book value, called intrinsic value, which is IShares Biotechnology's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because IShares Biotechnology's market value can be influenced by many factors that don't directly affect IShares Biotechnology's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between IShares Biotechnology's value and its price as these two are different measures arrived at by different means. Investors typically determine if IShares Biotechnology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, IShares Biotechnology'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.
iShares Biotechnology ETF Beta vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining IShares Biotechnology's current stock value. Our valuation model uses many indicators to compare IShares Biotechnology value to that of its competitors to determine the firm's financial worth. iShares Biotechnology ETF is considered the top ETF in price to earning as compared to similar ETFs. It also is considered the top ETF in beta as compared to similar ETFs totaling about 0.27 of Beta per Price To Earning. The ratio of Price To Earning to Beta for iShares Biotechnology ETF is roughly 3.72 . 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 IShares Biotechnology's earnings, one of the primary drivers of an investment's value.IShares Beta 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.
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| = | 3.16 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.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
IShares Biotechnology |
| = | 0.85 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
IShares Beta Comparison
IShares Biotechnology is currently under evaluation in beta as compared to similar ETFs.
Beta Analysis
IShares Biotechnology returns are very sensitive to returns on the market. As the market goes up or down, IShares Biotechnology is expected to follow.
IShares Biotechnology Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in IShares Biotechnology, profitability is also one of the essential criteria for including it into their portfolios because, without profit, IShares Biotechnology will eventually generate negative long term returns. The profitability progress is the general direction of IShares Biotechnology's change in net profit over the period of time. It can combine multiple indicators of IShares Biotechnology, 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.
The fund generally will invest at least 80 percent of its assets in the component securities of its index and in investments that have economic characteristics that are substantially identical to the component securities of its index and may invest up to 20 percent of its assets in certain futures, options and swap contracts, cash and cash equivalents. Nasdaq Biotechnology is traded on NASDAQ Exchange in the United States.
IShares Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on IShares Biotechnology. 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 IShares Biotechnology 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 IShares Biotechnology's important profitability drivers and their relationship over time.
Use IShares Biotechnology 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 IShares Biotechnology 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 IShares Biotechnology will appreciate offsetting losses from the drop in the long position's value.IShares Biotechnology Pair Trading
iShares Biotechnology ETF Pair Trading Analysis
The ability to find closely correlated positions to IShares Biotechnology could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace IShares Biotechnology 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 IShares Biotechnology - 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 iShares Biotechnology ETF to buy it.
The correlation of IShares Biotechnology 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 IShares Biotechnology moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if iShares Biotechnology ETF 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 IShares Biotechnology 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 IShares Biotechnology position
In addition to having IShares Biotechnology 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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Check out Risk vs Return Analysis. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
To fully project IShares Biotechnology's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of iShares Biotechnology ETF 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 IShares Biotechnology's income statement, its balance sheet, and the statement of cash flows.