Persimmon PLC Cash Per Share vs. Beta
| PSMMF Stock | USD 14.62 1.02 6.52% |
For Persimmon PLC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Persimmon PLC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Persimmon PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Persimmon PLC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Persimmon PLC over time as well as its relative position and ranking within its peers.
Persimmon |
Persimmon PLC Beta vs. Cash Per Share Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Persimmon PLC's current stock value. Our valuation model uses many indicators to compare Persimmon PLC value to that of its competitors to determine the firm's financial worth. Persimmon PLC is regarded third in cash per share category among its peers. It is rated below average in beta category among its peers totaling about 0.53 of Beta per Cash Per Share. The ratio of Cash Per Share to Beta for Persimmon PLC is roughly 1.90 . 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 Persimmon PLC's earnings, one of the primary drivers of an investment's value.Persimmon Beta vs. Cash Per Share
Cash per Share is a ratio of current cash on hands or in the banks of the company to a total number of shares outstanding. It is used to determine a firm's liquidity and is a good indicator of the overall financial health of a company. Value investors often compare this ratio to the current stock quote, and if it exceeds the stock price they would invest in it.
Persimmon PLC |
| = | 2.45 X |
Companies with high Cash per Share ratio will be considered as an attractive investment by most investors. In most industries if you can single out an equity instrument trading below its cash per share value, you have a bargain and should consider buying it. Finding the stocks traded below their cash value, therefore, can be a good starting point for investors using strategies based on fundamentals.
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.
Persimmon PLC |
| = | 1.29 |
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.
Persimmon Beta Comparison
Persimmon PLC is currently under evaluation in beta category among its peers.
Beta Analysis
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Persimmon PLC will likely underperform.
Persimmon PLC Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Persimmon PLC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Persimmon PLC will eventually generate negative long term returns. The profitability progress is the general direction of Persimmon PLC's change in net profit over the period of time. It can combine multiple indicators of Persimmon PLC, 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.
Persimmon Plc, together with its subsidiaries, operates as a house builder in the United Kingdom. Persimmon Plc was founded in 1972 and is headquartered in York, the United Kingdom. Persimmon Plc operates under Residential Construction classification in the United States and is traded on OTC Exchange. It employs 5196 people.
Persimmon Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Persimmon PLC. 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 Persimmon PLC 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 Persimmon PLC's important profitability drivers and their relationship over time.
Use Persimmon PLC 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 Persimmon PLC 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 Persimmon PLC will appreciate offsetting losses from the drop in the long position's value.Persimmon PLC Pair Trading
Persimmon PLC Pair Trading Analysis
The ability to find closely correlated positions to Persimmon PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Persimmon PLC 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 Persimmon PLC - 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 Persimmon PLC to buy it.
The correlation of Persimmon PLC 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 Persimmon PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Persimmon PLC 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 Persimmon PLC 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 Persimmon PLC position
In addition to having Persimmon PLC 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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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 Synthetics Theme or any other thematic opportunities.
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Other Information on Investing in Persimmon Pink Sheet
To fully project Persimmon PLC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Persimmon PLC at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Persimmon PLC's income statement, its balance sheet, and the statement of cash flows.