Porsche Automobile Return On Equity vs. Price To Book
| POAHY Stock | USD 3.53 0.03 0.86% |
For Porsche Automobile profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Porsche Automobile to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Porsche Automobile Holding utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Porsche Automobile's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Porsche Automobile Holding over time as well as its relative position and ranking within its peers.
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Porsche Automobile Price To Book vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Porsche Automobile's current stock value. Our valuation model uses many indicators to compare Porsche Automobile value to that of its competitors to determine the firm's financial worth. Porsche Automobile Holding 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 book category among its peers fabricating about 2.90 of Price To Book per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Porsche Automobile by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Porsche Automobile'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.Porsche Price To Book 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.
Porsche Automobile |
| = | 0.11 |
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 Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Porsche Automobile |
| = | 0.33 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Porsche Price To Book Comparison
Porsche Automobile is currently under evaluation in price to book category among its peers.
Porsche Automobile Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Porsche Automobile, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Porsche Automobile will eventually generate negative long term returns. The profitability progress is the general direction of Porsche Automobile's change in net profit over the period of time. It can combine multiple indicators of Porsche Automobile, 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.
Porsche Automobil Holding SE, through its subsidiaries, operates as an automobile manufacturer worldwide. Porsche Automobil Holding SE was founded in 2007 and is headquartered in Stuttgart, Germany. Porsche Auto is traded on OTC Exchange in the United States.
Porsche Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Porsche Automobile. 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 Porsche Automobile 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 Porsche Automobile's important profitability drivers and their relationship over time.
Use Porsche Automobile 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 Porsche Automobile 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 Porsche Automobile will appreciate offsetting losses from the drop in the long position's value.Porsche Automobile Pair Trading
Porsche Automobile Holding Pair Trading Analysis
The ability to find closely correlated positions to Porsche Automobile could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Porsche Automobile 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 Porsche Automobile - 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 Porsche Automobile Holding to buy it.
The correlation of Porsche Automobile 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 Porsche Automobile moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Porsche Automobile 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 Porsche Automobile 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 Porsche Automobile position
In addition to having Porsche Automobile 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 Junk Bonds Funds Thematic Idea Now
Junk Bonds Funds
Funds or Etfs that invest most of their assets into speculative (junk) bonds or to other fixed income instruments with interest rates 3 to 4 percentage points above government issues. The Junk Bonds Funds theme has 39 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 Junk Bonds Funds Theme or any other thematic opportunities.
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Additional Tools for Porsche Pink Sheet Analysis
When running Porsche Automobile's price analysis, check to measure Porsche Automobile'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 Porsche Automobile is operating at the current time. Most of Porsche Automobile's value examination focuses on studying past and present price action to predict the probability of Porsche Automobile's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Porsche Automobile's price. Additionally, you may evaluate how the addition of Porsche Automobile to your portfolios can decrease your overall portfolio volatility.