Inspur Software Price To Book vs. Return On Equity

600756 Stock   16.17  0.01  0.06%   
Based on the measurements of profitability obtained from Inspur Software's financial statements, Inspur Software Co may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in January. Profitability indicators assess Inspur Software's ability to earn profits and add value for shareholders.
For Inspur Software profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Inspur Software to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Inspur Software Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Inspur Software's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Inspur Software 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 Inspur Software's value and its price as these two are different measures arrived at by different means. Investors typically determine if Inspur Software is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Inspur Software'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.

Inspur Software Return On Equity vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Inspur Software's current stock value. Our valuation model uses many indicators to compare Inspur Software value to that of its competitors to determine the firm's financial worth.
Inspur Software Co is number one stock in price to book category among its peers. It also is number one stock in return on equity category among its peers . The ratio of Price To Book to Return On Equity for Inspur Software Co is about  437.17 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Inspur Software by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Inspur Software'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.

Inspur 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.

Inspur Software

P/B

 = 

MV Per Share

BV Per Share

 = 
2.36 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.

Inspur Software

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0054
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.

Inspur Return On Equity Comparison

Inspur Software is currently under evaluation in return on equity category among its peers.

Inspur Software Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Inspur Software, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Inspur Software will eventually generate negative long term returns. The profitability progress is the general direction of Inspur Software's change in net profit over the period of time. It can combine multiple indicators of Inspur Software, 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.
Last ReportedProjected for Next Year
Operating Income97 M101.8 M
Income Before Tax84.5 M63.2 M
Net Income Applicable To Common Shares73.3 M58.7 M
Net Income91 M60.4 M
Income Tax Expense-2.9 M-2.7 M
Net Income From Continuing Ops91.7 M70.6 M
Total Other Income Expense Net425.1 M446.3 M
Net Interest Income19.7 M17 M
Interest Income20.7 M17.8 M
Change To Netincome-12 M-12.6 M

Inspur Profitability Driver Comparison

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

Use Inspur Software 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 Inspur Software 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 Inspur Software will appreciate offsetting losses from the drop in the long position's value.

Inspur Software Pair Trading

Inspur Software Co Pair Trading Analysis

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

In addition to having Inspur Software 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 Latest Losers Thematic Idea Now

Latest Losers
Latest Losers Theme
Dynamically computed list of top equities currently sorted across major exchanges. The Latest Losers theme has 236 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 Latest Losers Theme or any other thematic opportunities.
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Other Information on Investing in Inspur Stock

To fully project Inspur Software's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Inspur Software 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 Inspur Software's income statement, its balance sheet, and the statement of cash flows.
Potential Inspur Software investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Inspur Software investors may work on each financial statement separately, they are all related. The changes in Inspur Software's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Inspur Software's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.