Smallcap Price To Earning vs. Price To Book
| PSSIX Fund | USD 30.19 0.50 1.68% |
For Smallcap profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Smallcap to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Smallcap Sp 600 utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Smallcap's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Smallcap Sp 600 over time as well as its relative position and ranking within its peers.
Smallcap |
Smallcap Sp 600 Price To Book vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Smallcap's current stock value. Our valuation model uses many indicators to compare Smallcap value to that of its competitors to determine the firm's financial worth. Smallcap Sp 600 is rated top fund in price to earning among similar funds. It also is rated top fund in price to book among similar funds fabricating about 0.09 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Smallcap Sp 600 is roughly 10.71 . 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 Smallcap's earnings, one of the primary drivers of an investment's value.Smallcap Price To Book 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.
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| = | 22.49 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.
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.
Smallcap |
| = | 2.10 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.
Smallcap Price To Book Comparison
Smallcap is currently under evaluation in price to book among similar funds.
Smallcap Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Smallcap, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Smallcap will eventually generate negative long term returns. The profitability progress is the general direction of Smallcap's change in net profit over the period of time. It can combine multiple indicators of Smallcap, 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.
Under normal circumstances, the fund invests at least 80 percent of its net assets, plus any borrowings for investment purposes, in equity securities of companies that compose the Standard Poors SmallCap 600 Index at the time of purchase. The index is designed to represent U.S. equities with riskreturn characteristics of the small cap universe. The fund uses derivative strategies and invests in exchange-traded funds .
Smallcap Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Smallcap. 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 Smallcap 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 Smallcap's important profitability drivers and their relationship over time.
Use Smallcap 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 Smallcap 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 Smallcap will appreciate offsetting losses from the drop in the long position's value.Smallcap Pair Trading
Smallcap Sp 600 Pair Trading Analysis
The ability to find closely correlated positions to Smallcap could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Smallcap 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 Smallcap - 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 Smallcap Sp 600 to buy it.
The correlation of Smallcap 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 Smallcap moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Smallcap Sp 600 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 Smallcap 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 Smallcap position
In addition to having Smallcap 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 Services Thematic Idea Now
Services
Companies involved in delivering services to business or consumers across different industries and sectors. The Services theme has 30 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 Services Theme or any other thematic opportunities.
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Other Information on Investing in Smallcap Mutual Fund
To fully project Smallcap's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Smallcap Sp 600 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 Smallcap's income statement, its balance sheet, and the statement of cash flows.
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