Nederman Holding Return On Equity vs. Price To Earning
| NMAN Stock | SEK 220.00 10.00 4.76% |
For Nederman Holding profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nederman Holding to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nederman Holding AB utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nederman Holding's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nederman Holding AB over time as well as its relative position and ranking within its peers.
Nederman |
Nederman Holding Price To Earning vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Nederman Holding's current stock value. Our valuation model uses many indicators to compare Nederman Holding value to that of its competitors to determine the firm's financial worth. Nederman Holding AB 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 earning category among its peers reporting about 107.29 of Price To Earning per Return On Equity. 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 Nederman Holding's earnings, one of the primary drivers of an investment's value.Nederman Price To Earning 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.
Nederman Holding |
| = | 0.17 |
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 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.
Nederman Holding |
| = | 18.68 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.
Nederman Price To Earning Comparison
Nederman Holding is currently under evaluation in price to earning category among its peers.
Nederman Holding Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Nederman Holding, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nederman Holding will eventually generate negative long term returns. The profitability progress is the general direction of Nederman Holding's change in net profit over the period of time. It can combine multiple indicators of Nederman Holding, 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.
Nederman Holding AB operates as an environmental technology company in North and South America, Europe, the Middle East, Africa, Asia, and Oceania. Nederman Holding AB was founded in 1944 and is headquartered in Helsingborg, Sweden. Nederman Holding operates under Industrial Equipment And Light Machinery classification in Sweden and is traded on Stockholm Stock Exchange. It employs 2293 people.
Nederman Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Nederman Holding. 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 Nederman Holding 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 Nederman Holding's important profitability drivers and their relationship over time.
Use Nederman Holding 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 Nederman Holding 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 Nederman Holding will appreciate offsetting losses from the drop in the long position's value.Nederman Holding Pair Trading
Nederman Holding AB Pair Trading Analysis
The ability to find closely correlated positions to Nederman Holding could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nederman Holding 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 Nederman Holding - 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 Nederman Holding AB to buy it.
The correlation of Nederman Holding 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 Nederman Holding moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nederman Holding 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 Nederman Holding 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 Nederman Holding position
In addition to having Nederman Holding 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 Nederman Stock Analysis
When running Nederman Holding's price analysis, check to measure Nederman Holding'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 Nederman Holding is operating at the current time. Most of Nederman Holding's value examination focuses on studying past and present price action to predict the probability of Nederman Holding's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Nederman Holding's price. Additionally, you may evaluate how the addition of Nederman Holding to your portfolios can decrease your overall portfolio volatility.