Spotify Technology Price To Book vs. Return On Equity
| S1PO34 Stock | BRL 717.59 5.37 0.75% |
For Spotify Technology profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Spotify Technology to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Spotify Technology SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Spotify Technology's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Spotify Technology SA over time as well as its relative position and ranking within its peers.
Spotify |
Spotify Technology Return On Equity vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Spotify Technology's current stock value. Our valuation model uses many indicators to compare Spotify Technology value to that of its competitors to determine the firm's financial worth. Spotify Technology SA is currently regarded as top stock in price to book category among its peers. It is rated below average in return on equity category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value Spotify Technology by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Spotify Technology's Stock. 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.Spotify Return On 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.
Spotify Technology |
| = | 6.15 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.
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.
Spotify Technology |
| = | -0.19 |
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.
Spotify Return On Equity Comparison
Spotify Technology is currently under evaluation in return on equity category among its peers.
Spotify Technology Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Spotify Technology, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Spotify Technology will eventually generate negative long term returns. The profitability progress is the general direction of Spotify Technology's change in net profit over the period of time. It can combine multiple indicators of Spotify Technology, 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.
Spotify Technology S.A., together with its subsidiaries, provides audio streaming services worldwide. The company was founded in 2006 and is based in Luxembourg, Luxembourg. SPOTIFY TECHDRN is traded on Sao Paolo Stock Exchange in Brazil.
Spotify Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Spotify Technology. 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 Spotify Technology 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 Spotify Technology's important profitability drivers and their relationship over time.
Use Spotify Technology 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 Spotify Technology 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 Spotify Technology will appreciate offsetting losses from the drop in the long position's value.Spotify Technology Pair Trading
Spotify Technology SA Pair Trading Analysis
The ability to find closely correlated positions to Spotify Technology could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Spotify Technology 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 Spotify Technology - 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 Spotify Technology SA to buy it.
The correlation of Spotify Technology 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 Spotify Technology moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Spotify Technology 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 Spotify Technology 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 Spotify Technology position
In addition to having Spotify Technology 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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Funds or Etfs investing in real estate backed instruments or issues backed by different types of commercial properties. The Realty Funds theme has 47 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 Realty Funds Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Spotify Stock
When determining whether Spotify Technology is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Spotify Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Spotify Technology Sa Stock. Highlighted below are key reports to facilitate an investment decision about Spotify Technology Sa Stock:Check out World Market Map. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
To fully project Spotify Technology's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Spotify Technology 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 Spotify Technology's income statement, its balance sheet, and the statement of cash flows.