NewAmsterdam Pharma Working Capital vs. Revenue
Is Stock space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NewAmsterdam Pharma. If investors know NewAmsterdam will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about NewAmsterdam Pharma listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of NewAmsterdam Pharma is measured differently than its book value, which is the value of NewAmsterdam that is recorded on the company's balance sheet. Investors also form their own opinion of NewAmsterdam Pharma's value that differs from its market value or its book value, called intrinsic value, which is NewAmsterdam Pharma'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 NewAmsterdam Pharma's market value can be influenced by many factors that don't directly affect NewAmsterdam Pharma'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 NewAmsterdam Pharma's value and its price as these two are different measures arrived at by different means. Investors typically determine if NewAmsterdam Pharma is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NewAmsterdam Pharma'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.
NewAmsterdam Pharma Revenue vs. Working Capital Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining NewAmsterdam Pharma's current stock value. Our valuation model uses many indicators to compare NewAmsterdam Pharma value to that of its competitors to determine the firm's financial worth. NewAmsterdam Pharma is regarded second in working capital category among its peers. It is rated below average in revenue category among its peers totaling about 0.06 of Revenue per Working Capital. The ratio of Working Capital to Revenue for NewAmsterdam Pharma is roughly 16.60 . Comparative valuation analysis is a catch-all technique that is used if you cannot value NewAmsterdam Pharma 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.NewAmsterdam Revenue vs. Working Capital
Working Capital is a measure of company efficiency and operating liquidity. The working capital is usually calculated by subtracting Current Liabilities from Current Assets. It is an important indicator of the firm ability to continue its normal operations without additional debt obligations. .
NewAmsterdam Pharma |
| = | 756.5 M |
Working Capital can be positive or negative, depending on how much of current debt the company is carrying on its balance sheet. In general terms, companies that have a lot of working capital will experience more growth in the near future since they can expand and improve their operations using existing resources. On the other hand, companies with small or negative working capital may lack the funds necessary for growth or future operation. Working Capital also shows if the company has sufficient liquid resources to satisfy short-term liabilities and operational expenses.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
NewAmsterdam Pharma |
| = | 45.56 M |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
NewAmsterdam Revenue vs Competition
NewAmsterdam Pharma is rated below average in revenue category among its peers. Market size based on revenue of Health Care industry is now estimated at about 2.66 Billion. NewAmsterdam Pharma claims roughly 45.56 Million in revenue contributing just under 2% to equities under Health Care industry.
NewAmsterdam Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on NewAmsterdam Pharma. 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 NewAmsterdam Pharma 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 NewAmsterdam Pharma's important profitability drivers and their relationship over time.
NewAmsterdam Pharma Earnings per Share Projection vs Actual
Use NewAmsterdam Pharma 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 NewAmsterdam Pharma 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 NewAmsterdam Pharma will appreciate offsetting losses from the drop in the long position's value.NewAmsterdam Pharma Pair Trading
NewAmsterdam Pharma Pair Trading Analysis
The ability to find closely correlated positions to NewAmsterdam Pharma could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NewAmsterdam Pharma 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 NewAmsterdam Pharma - 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 NewAmsterdam Pharma to buy it.
The correlation of NewAmsterdam Pharma 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 NewAmsterdam Pharma moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NewAmsterdam Pharma 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 NewAmsterdam Pharma 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 NewAmsterdam Pharma position
In addition to having NewAmsterdam Pharma 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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Additional Tools for NewAmsterdam Stock Analysis
When running NewAmsterdam Pharma's price analysis, check to measure NewAmsterdam Pharma's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy NewAmsterdam Pharma is operating at the current time. Most of NewAmsterdam Pharma's value examination focuses on studying past and present price action to predict the probability of NewAmsterdam Pharma's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NewAmsterdam Pharma's price. Additionally, you may evaluate how the addition of NewAmsterdam Pharma to your portfolios can decrease your overall portfolio volatility.