NETGEAR Price To Earning vs. Beta
| NTGR Stock | USD 23.91 0.19 0.79% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.24 | 0.3364 |
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For NETGEAR profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NETGEAR to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NETGEAR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NETGEAR's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NETGEAR over time as well as its relative position and ranking within its peers.
NETGEAR |
Is Communications Equipment 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 NETGEAR. If investors know NETGEAR 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 NETGEAR listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.69) | Earnings Share 0.67 | Revenue Per Share 23.328 | Quarterly Revenue Growth (0.08) | Return On Assets (0.05) |
The market value of NETGEAR is measured differently than its book value, which is the value of NETGEAR that is recorded on the company's balance sheet. Investors also form their own opinion of NETGEAR's value that differs from its market value or its book value, called intrinsic value, which is NETGEAR'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 NETGEAR's market value can be influenced by many factors that don't directly affect NETGEAR'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 NETGEAR's value and its price as these two are different measures arrived at by different means. Investors typically determine if NETGEAR is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NETGEAR'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.
NETGEAR Beta vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining NETGEAR's current stock value. Our valuation model uses many indicators to compare NETGEAR value to that of its competitors to determine the firm's financial worth. NETGEAR is rated below average in price to earning category among its peers. It is rated below average in beta category among its peers totaling about 0.12 of Beta per Price To Earning. The ratio of Price To Earning to Beta for NETGEAR is roughly 8.55 . Comparative valuation analysis is a catch-all technique that is used if you cannot value NETGEAR 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.NETGEAR Beta vs. Price To Earning
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.
NETGEAR |
| = | 7.07 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.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
NETGEAR |
| = | 0.83 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
NETGEAR Beta Comparison
NETGEAR is currently under evaluation in beta category among its peers.
Beta Analysis
As returns on the market increase, NETGEAR's returns are expected to increase less than the market. However, during the bear market, the loss of holding NETGEAR is expected to be smaller as well.
NETGEAR Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in NETGEAR, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NETGEAR will eventually generate negative long term returns. The profitability progress is the general direction of NETGEAR's change in net profit over the period of time. It can combine multiple indicators of NETGEAR, 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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 136 K | 142.8 K | |
| Operating Income | -33.3 M | -31.6 M | |
| Income Before Tax | -19.1 M | -18.2 M | |
| Total Other Income Expense Net | 14.1 M | 14.8 M | |
| Net Loss | -104.8 M | -99.5 M | |
| Income Tax Expense | 85.6 M | 89.9 M | |
| Net Loss | -62.1 M | -59 M | |
| Net Loss | -109.1 M | -103.7 M | |
| Non Operating Income Net Other | 811.8 K | 899.1 K | |
| Interest Income | 6.8 M | 7.2 M | |
| Net Interest Income | 6.8 M | 7.2 M | |
| Change To Netincome | 50.5 M | 53 M | |
| Net Loss | (3.57) | (3.39) | |
| Income Quality | (0.54) | (0.52) | |
| Net Income Per E B T | 5.47 | 5.75 |
NETGEAR Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on NETGEAR. 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 NETGEAR 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 NETGEAR's important profitability drivers and their relationship over time.
Use NETGEAR 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 NETGEAR 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 NETGEAR will appreciate offsetting losses from the drop in the long position's value.NETGEAR Pair Trading
NETGEAR Pair Trading Analysis
The ability to find closely correlated positions to NETGEAR could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NETGEAR 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 NETGEAR - 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 NETGEAR to buy it.
The correlation of NETGEAR 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 NETGEAR moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NETGEAR 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 NETGEAR 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 NETGEAR position
In addition to having NETGEAR 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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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Aircraft theme has 46 constituents at this time.
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Additional Tools for NETGEAR Stock Analysis
When running NETGEAR's price analysis, check to measure NETGEAR'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 NETGEAR is operating at the current time. Most of NETGEAR's value examination focuses on studying past and present price action to predict the probability of NETGEAR's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NETGEAR's price. Additionally, you may evaluate how the addition of NETGEAR to your portfolios can decrease your overall portfolio volatility.