Potash America Price To Earning vs. Beta
| PTAM Stock | USD 0.0009 0.00 0.00% |
For Potash America profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Potash America to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Potash America utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Potash America's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Potash America over time as well as its relative position and ranking within its peers.
Potash |
Potash America Beta vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Potash America's current stock value. Our valuation model uses many indicators to compare Potash America value to that of its competitors to determine the firm's financial worth. Potash America is considered to be number one stock in price to earning category among its peers. It also is considered to be number one stock in beta category among its peers totaling about 0.81 of Beta per Price To Earning. The ratio of Price To Earning to Beta for Potash America is roughly 1.23 . 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 Potash America's earnings, one of the primary drivers of an investment's value.Potash 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.
Potash America |
| = | 2.57 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.
Potash America |
| = | 2.08 |
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.
Potash Beta Comparison
Potash America 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, Potash America will likely underperform.
Potash America Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Potash America, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Potash America will eventually generate negative long term returns. The profitability progress is the general direction of Potash America's change in net profit over the period of time. It can combine multiple indicators of Potash America, 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.
Potash America, Inc., an exploration stage company, focuses on the development of fertilizer and agri-business assets in Canada. Potash America, Inc. was founded in 2007 and is based in Boca Raton, Florida. Potash America operates under Agricultural Inputs classification in the United States and is traded on OTC Exchange.
Potash Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Potash America. 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 Potash America 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 Potash America's important profitability drivers and their relationship over time.
Use Potash America 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 Potash America 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 Potash America will appreciate offsetting losses from the drop in the long position's value.Potash America Pair Trading
Potash America Pair Trading Analysis
The ability to find closely correlated positions to Potash America could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Potash America 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 Potash America - 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 Potash America to buy it.
The correlation of Potash America 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 Potash America moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Potash America 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 Potash America 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 Potash America position
In addition to having Potash America 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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Other Information on Investing in Potash Pink Sheet
To fully project Potash America's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Potash America 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 Potash America's income statement, its balance sheet, and the statement of cash flows.