Kobe Steel Price To Earning vs. Current Valuation
Kobe Steel Current Valuation vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Kobe Steel's current stock value. Our valuation model uses many indicators to compare Kobe Steel value to that of its competitors to determine the firm's financial worth. Kobe Steel is rated below average in price to earning category among its peers. It is rated third overall in current valuation category among its peers reporting about 1,704,795,343 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 Kobe Steel's earnings, one of the primary drivers of an investment's value.Kobe 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.
Kobe Steel |
| = | 4.02 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.
Kobe Steel |
| = | 6.85 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.
Kobe Current Valuation vs Competition
Kobe Steel is rated third overall in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Steel industry is now estimated at about 51.61 Billion. Kobe Steel retains roughly 6.85 Billion in current valuation claiming about 13% of equities listed under Steel industry.
Kobe Steel Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Kobe Steel, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Kobe Steel will eventually generate negative long term returns. The profitability progress is the general direction of Kobe Steel's change in net profit over the period of time. It can combine multiple indicators of Kobe Steel, 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.
Kobe Steel, Ltd. engages in the materials, machinery, and electric power businesses worldwide. The company was founded in 1905 and is headquartered in Kobe, Japan. KOBE STEEL operates under Steel classification in the United States and is traded on OTC Exchange. It employs 38106 people.
Kobe Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Kobe Steel. 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 Kobe Steel 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 Kobe Steel's important profitability drivers and their relationship over time.
Kobe Steel Earnings per Share Projection vs Actual
Use Kobe Steel 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 Kobe Steel 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 Kobe Steel will appreciate offsetting losses from the drop in the long position's value.Kobe Steel Pair Trading
Kobe Steel Pair Trading Analysis
The ability to find closely correlated positions to Kobe Steel could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Kobe Steel 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 Kobe Steel - 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 Kobe Steel to buy it.
The correlation of Kobe Steel 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 Kobe Steel moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Kobe Steel 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 Kobe Steel 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 Kobe Steel position
In addition to having Kobe Steel 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 Large Growth Funds Thematic Idea Now
Large Growth Funds
Funds or Etfs that invest in stocks of large-sized companies with above-average risk and growth rate. The Large Growth Funds theme has 37 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 Large Growth Funds Theme or any other thematic opportunities.
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Other Information on Investing in Kobe Pink Sheet
To fully project Kobe Steel's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Kobe Steel 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 Kobe Steel's income statement, its balance sheet, and the statement of cash flows.