Metso Oyj Price To Book vs. Net Income
| METSO Stock | EUR 8.33 0.03 0.36% |
For Metso Oyj profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Metso Oyj to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Metso Oyj utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Metso Oyj's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Metso Oyj over time as well as its relative position and ranking within its peers.
Metso |
Metso Oyj Net Income vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Metso Oyj's current stock value. Our valuation model uses many indicators to compare Metso Oyj value to that of its competitors to determine the firm's financial worth. Metso Oyj is considered to be number one stock in price to book category among its peers. It also is considered to be number one stock in net income category among its peers making up about 73,015,873 of Net Income per Price To Book. Comparative valuation analysis is a catch-all model that can be used if you cannot value Metso Oyj by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Metso Oyj's Stock. 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.Metso Net Income vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Metso Oyj |
| = | 3.78 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Metso Oyj |
| = | 276 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Metso Net Income Comparison
Metso Oyj is currently under evaluation in net income category among its peers.
Metso Oyj Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Metso Oyj, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Metso Oyj will eventually generate negative long term returns. The profitability progress is the general direction of Metso Oyj's change in net profit over the period of time. It can combine multiple indicators of Metso Oyj, 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.
Metso Corporation, an industrial company, provides equipment and services for the mining, aggregates, recycling, and process industries worldwide. Further, the company provides expert, flow control, maintenance, performance and engineered, and training services. Metso operates under Conglomerates classification in Finland and is traded on Helsinki Exchange. It employs 14676 people.
Metso Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Metso Oyj. 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 Metso Oyj 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 Metso Oyj's important profitability drivers and their relationship over time.
Use Metso Oyj 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 Metso Oyj 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 Metso Oyj will appreciate offsetting losses from the drop in the long position's value.Metso Oyj Pair Trading
Metso Oyj Pair Trading Analysis
The ability to find closely correlated positions to Metso Oyj could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Metso Oyj 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 Metso Oyj - 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 Metso Oyj to buy it.
The correlation of Metso Oyj 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 Metso Oyj moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Metso Oyj 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 Metso Oyj 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 Metso Oyj position
In addition to having Metso Oyj 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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Other Information on Investing in Metso Stock
To fully project Metso Oyj's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Metso Oyj 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 Metso Oyj's income statement, its balance sheet, and the statement of cash flows.