Biostar Microtech Cash And Equivalents vs. EBITDA

2399 Stock  TWD 29.50  0.45  1.55%   
Considering the key profitability indicators obtained from Biostar Microtech's historical financial statements, Biostar Microtech International may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Biostar Microtech's ability to earn profits and add value for shareholders.
For Biostar Microtech profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Biostar Microtech to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Biostar Microtech International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Biostar Microtech's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Biostar Microtech International over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Biostar Microtech's value and its price as these two are different measures arrived at by different means. Investors typically determine if Biostar Microtech is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Biostar Microtech'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.

Biostar Microtech EBITDA vs. Cash And Equivalents Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Biostar Microtech's current stock value. Our valuation model uses many indicators to compare Biostar Microtech value to that of its competitors to determine the firm's financial worth.
Biostar Microtech International is rated below average in cash and equivalents category among its peers. It is rated fifth in ebitda category among its peers totaling about  0.46  of EBITDA per Cash And Equivalents. The ratio of Cash And Equivalents to EBITDA for Biostar Microtech International is roughly  2.15 . 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 Biostar Microtech's earnings, one of the primary drivers of an investment's value.

Biostar EBITDA vs. Cash And Equivalents

Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

Biostar Microtech

Cash

 = 

Bank Deposits

+

Liquidities

 = 
892.5 M
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Biostar Microtech

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
414.87 M
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.

Biostar EBITDA Comparison

Biostar Microtech is currently under evaluation in ebitda category among its peers.

Biostar Microtech Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Biostar Microtech, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Biostar Microtech will eventually generate negative long term returns. The profitability progress is the general direction of Biostar Microtech's change in net profit over the period of time. It can combine multiple indicators of Biostar Microtech, 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.
Biostar Microtech International Corp. engages in the design, manufacture, and sale of add-on cards, and multi-media and system products in Taiwan and internationally. The company was founded in 1986 and is based in New Taipei City, Taiwan. BIOSTAR MICROTEC operates under Computer Systems classification in Taiwan and is traded on Taiwan Stock Exchange.

Biostar Profitability Driver Comparison

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

Use Biostar Microtech 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 Biostar Microtech 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 Biostar Microtech will appreciate offsetting losses from the drop in the long position's value.

Biostar Microtech Pair Trading

Biostar Microtech International Pair Trading Analysis

The ability to find closely correlated positions to Biostar Microtech could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Biostar Microtech 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 Biostar Microtech - 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 Biostar Microtech International to buy it.
The correlation of Biostar Microtech 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 Biostar Microtech moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Biostar Microtech 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 Biostar Microtech 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Biostar Microtech position

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Additional Tools for Biostar Stock Analysis

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