Koninklijke KPN Price To Earning vs. Return On Equity
| KKPNYDelisted Stock | USD 3.34 0.00 0.00% |
For Koninklijke KPN profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Koninklijke KPN to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Koninklijke KPN NV utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Koninklijke KPN's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Koninklijke KPN NV over time as well as its relative position and ranking within its peers.
Koninklijke |
Koninklijke KPN NV Return On Equity vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Koninklijke KPN's current stock value. Our valuation model uses many indicators to compare Koninklijke KPN value to that of its competitors to determine the firm's financial worth. Koninklijke KPN NV is rated second overall in price to earning category among its peers. It also is rated second overall in return on equity category among its peers reporting about 0.01 of Return On Equity per Price To Earning. The ratio of Price To Earning to Return On Equity for Koninklijke KPN NV is roughly 85.13 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Koninklijke KPN by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Koninklijke KPN's Pink Sheet. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Koninklijke Return On Equity 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.
Koninklijke KPN |
| = | 19.06 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.
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.
Koninklijke KPN |
| = | 0.22 |
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.
Koninklijke Return On Equity Comparison
Koninklijke KPN is currently under evaluation in return on equity category among its peers.
Koninklijke KPN Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Koninklijke KPN, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Koninklijke KPN will eventually generate negative long term returns. The profitability progress is the general direction of Koninklijke KPN's change in net profit over the period of time. It can combine multiple indicators of Koninklijke KPN, 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.
Koninklijke KPN N.V. provides telecommunications and information technology services in the Netherlands. The company was founded in 1881 and is headquartered in Rotterdam, the Netherlands. Royal Kpn is traded on OTC Exchange in the United States.
Koninklijke Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Koninklijke KPN. 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 Koninklijke KPN 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 Koninklijke KPN's important profitability drivers and their relationship over time.
Use Koninklijke KPN 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 Koninklijke KPN 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 Koninklijke KPN will appreciate offsetting losses from the drop in the long position's value.Koninklijke KPN Pair Trading
Koninklijke KPN NV Pair Trading Analysis
The ability to find closely correlated positions to Koninklijke KPN could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Koninklijke KPN 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 Koninklijke KPN - 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 Koninklijke KPN NV to buy it.
The correlation of Koninklijke KPN 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 Koninklijke KPN moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Koninklijke KPN NV 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 Koninklijke KPN 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 Koninklijke KPN position
In addition to having Koninklijke KPN 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 Business Services Thematic Idea Now
Business Services
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Business Services 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 Business Services Theme or any other thematic opportunities.
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Check out Correlation 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 board of governors. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Consideration for investing in Koninklijke Pink Sheet
If you are still planning to invest in Koninklijke KPN NV 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 Koninklijke KPN's history and understand the potential risks before investing.
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