Rechi Precision Price To Earning vs. Current Valuation

4532 Stock  TWD 26.50  0.15  0.56%   
Considering Rechi Precision's profitability and operating efficiency indicators, Rechi Precision Co 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 Rechi Precision's ability to earn profits and add value for shareholders.
For Rechi Precision profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Rechi Precision to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Rechi Precision Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Rechi Precision's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Rechi Precision Co 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 Rechi Precision's value and its price as these two are different measures arrived at by different means. Investors typically determine if Rechi Precision is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rechi Precision'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.

Rechi Precision Current Valuation vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Rechi Precision's current stock value. Our valuation model uses many indicators to compare Rechi Precision value to that of its competitors to determine the firm's financial worth.
Rechi Precision Co is number one stock in price to earning category among its peers. It also is the top company in current valuation category among its peers reporting about  792,524,681  of Current Valuation per Price To Earning. 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 Rechi Precision's earnings, one of the primary drivers of an investment's value.

Rechi Current Valuation 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.

Rechi Precision

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
13.32 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.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Rechi Precision

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
10.56 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Rechi Current Valuation vs Competition

Rechi Precision Co is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is presently estimated at about 547.19 Billion. Rechi Precision claims roughly 10.56 Billion in current valuation contributing just under 2% to equities under Industrials industry.

Rechi Precision Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Rechi Precision, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Rechi Precision will eventually generate negative long term returns. The profitability progress is the general direction of Rechi Precision's change in net profit over the period of time. It can combine multiple indicators of Rechi Precision, 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.
Rechi Precision Co., Ltd. develops, produces, and sells compressors in Taiwan and internationally. The company was founded in 1989 and is headquartered in Taoyuan City, Taiwan. RECHI PRECISION operates under Specialty Industrial Machinery classification in Taiwan and is traded on Taiwan Stock Exchange.

Rechi Profitability Driver Comparison

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

Use Rechi Precision 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 Rechi Precision 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 Rechi Precision will appreciate offsetting losses from the drop in the long position's value.

Rechi Precision Pair Trading

Rechi Precision Co Pair Trading Analysis

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

In addition to having Rechi Precision 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.

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Run Marketing Thematic Idea Now

Marketing
Marketing Theme
Companies providing marketing and public relation (PR) services as well as news and media distribution. The Marketing 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 Marketing Theme or any other thematic opportunities.
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Additional Tools for Rechi Stock Analysis

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