Nexon Co Return On Equity vs. Price To Sales
| NEXOY Stock | USD 14.13 0.38 2.76% |
For Nexon Co profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nexon Co to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nexon Co Ltd utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nexon Co's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nexon Co Ltd over time as well as its relative position and ranking within its peers.
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Nexon Co Price To Sales vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Nexon Co's current stock value. Our valuation model uses many indicators to compare Nexon Co value to that of its competitors to determine the firm's financial worth. Nexon Co Ltd is considered to be number one stock in return on equity category among its peers. It also is considered to be number one stock in price to sales category among its peers fabricating about 0.49 of Price To Sales per Return On Equity. The ratio of Return On Equity to Price To Sales for Nexon Co Ltd is roughly 2.04 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Nexon Co by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Nexon Co'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.Nexon Price To Sales vs. Return On Equity
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.
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| = | 0.12 |
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.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
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| = | 0.06 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Nexon Price To Sales Comparison
Nexon Co is currently under evaluation in price to sales category among its peers.
Nexon Co Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Nexon Co, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nexon Co will eventually generate negative long term returns. The profitability progress is the general direction of Nexon Co's change in net profit over the period of time. It can combine multiple indicators of Nexon Co, 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.
NEXON Co., Ltd. produces, develops, and services PC online and mobile games. The company was founded in 1994 and is headquartered in Tokyo, Japan. Nexon operates under Electronic Gaming Multimedia classification in the United States and is traded on OTC Exchange. It employs 6683 people.
Nexon Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Nexon Co. 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 Nexon Co 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 Nexon Co's important profitability drivers and their relationship over time.
Use Nexon Co 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 Nexon Co 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 Nexon Co will appreciate offsetting losses from the drop in the long position's value.Nexon Co Pair Trading
Nexon Co Ltd Pair Trading Analysis
The ability to find closely correlated positions to Nexon Co could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nexon Co 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 Nexon Co - 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 Nexon Co Ltd to buy it.
The correlation of Nexon Co 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 Nexon Co moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nexon Co 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 Nexon Co 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 Nexon Co position
In addition to having Nexon Co 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 Nexon Pink Sheet Analysis
When running Nexon Co's price analysis, check to measure Nexon Co'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 Nexon Co is operating at the current time. Most of Nexon Co's value examination focuses on studying past and present price action to predict the probability of Nexon Co's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Nexon Co's price. Additionally, you may evaluate how the addition of Nexon Co to your portfolios can decrease your overall portfolio volatility.