Nokia Return On Equity vs. EBITDA
| NOKN Stock | MXN 85.70 0.20 0.23% |
For Nokia profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nokia to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nokia utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nokia's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nokia over time as well as its relative position and ranking within its peers.
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Nokia EBITDA vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Nokia's current stock value. Our valuation model uses many indicators to compare Nokia value to that of its competitors to determine the firm's financial worth. Nokia 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 ebitda category among its peers totaling about 15,972,286,374 of EBITDA per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Nokia by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Nokia'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.Nokia EBITDA 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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| = | 0.22 |
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.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Nokia |
| = | 3.46 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Nokia EBITDA Comparison
Nokia is currently under evaluation in ebitda category among its peers.
Nokia Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Nokia, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nokia will eventually generate negative long term returns. The profitability progress is the general direction of Nokia's change in net profit over the period of time. It can combine multiple indicators of Nokia, 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.
Nokia Corporation provides mobile and fixed network solutions worldwide. Nokia Corporation was founded in 1865 and is headquartered in Espoo, Finland. NOKIA OYJ operates under Communication Equipment classification in Mexico and is traded on Mexico Stock Exchange. It employs 920 people.
Nokia Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Nokia. 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 Nokia 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 Nokia's important profitability drivers and their relationship over time.
Use Nokia 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 Nokia 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 Nokia will appreciate offsetting losses from the drop in the long position's value.Nokia Pair Trading
Nokia Pair Trading Analysis
The ability to find closely correlated positions to Nokia could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nokia 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 Nokia - 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 Nokia to buy it.
The correlation of Nokia 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 Nokia moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nokia 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 Nokia 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 Nokia position
In addition to having Nokia 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 Gold ETFs Thematic Idea Now
Gold ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Gold ETFs theme has 19 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 Gold ETFs Theme or any other thematic opportunities.
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Additional Tools for Nokia Stock Analysis
When running Nokia's price analysis, check to measure Nokia'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 Nokia is operating at the current time. Most of Nokia's value examination focuses on studying past and present price action to predict the probability of Nokia's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Nokia's price. Additionally, you may evaluate how the addition of Nokia to your portfolios can decrease your overall portfolio volatility.