Polestar Automotive Price To Book vs. Debt To Equity

PSNYW Stock  USD 0.19  0.01  5.00%   
Based on the measurements of profitability obtained from Polestar Automotive's financial statements, Polestar Automotive Holding may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in March. Profitability indicators assess Polestar Automotive's ability to earn profits and add value for shareholders.
For Polestar Automotive profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Polestar Automotive to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Polestar Automotive Holding utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Polestar Automotive's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Polestar Automotive Holding over time as well as its relative position and ranking within its peers.
  
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Is Automotive Parts & 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 Polestar Automotive. If investors know Polestar 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 Polestar Automotive listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Polestar Automotive is measured differently than its book value, which is the value of Polestar that is recorded on the company's balance sheet. Investors also form their own opinion of Polestar Automotive's value that differs from its market value or its book value, called intrinsic value, which is Polestar Automotive'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 Polestar Automotive's market value can be influenced by many factors that don't directly affect Polestar Automotive'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 Polestar Automotive's value and its price as these two are different measures arrived at by different means. Investors typically determine if Polestar Automotive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Polestar Automotive'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.

Polestar Automotive Debt To Equity vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Polestar Automotive's current stock value. Our valuation model uses many indicators to compare Polestar Automotive value to that of its competitors to determine the firm's financial worth.
Polestar Automotive Holding is regarded third in price to book category among its peers. It is regarded second in debt to equity category among its peers fabricating about  0.70  of Debt To Equity per Price To Book. The ratio of Price To Book to Debt To Equity for Polestar Automotive Holding is roughly  1.42 . Comparative valuation analysis is a catch-all technique that is used if you cannot value Polestar Automotive 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.

Polestar Debt To Equity vs. Price To Book

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.

Polestar Automotive

P/B

 = 

MV Per Share

BV Per Share

 = 
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.
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.

Polestar Automotive

D/E

 = 

Total Debt

Total Equity

 = 
0.23 %
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.

Polestar Debt To Equity Comparison

Polestar Automotive is currently under evaluation in debt to equity category among its peers.

Polestar Automotive Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Polestar Automotive, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Polestar Automotive will eventually generate negative long term returns. The profitability progress is the general direction of Polestar Automotive's change in net profit over the period of time. It can combine multiple indicators of Polestar Automotive, 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.
Polestar Automotive Holding UK PLC manufactures and sells premium electric vehicles. The company was founded in 2017 and is headquartered in Gothenburg, Sweden. Polestar Automotive is traded on NASDAQ Exchange in the United States.

Polestar Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Polestar Automotive. 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 Polestar Automotive 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 Polestar Automotive's important profitability drivers and their relationship over time.

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Additional Tools for Polestar Stock Analysis

When running Polestar Automotive's price analysis, check to measure Polestar Automotive'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 Polestar Automotive is operating at the current time. Most of Polestar Automotive's value examination focuses on studying past and present price action to predict the probability of Polestar Automotive's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Polestar Automotive's price. Additionally, you may evaluate how the addition of Polestar Automotive to your portfolios can decrease your overall portfolio volatility.