Ledtech Electronics Current Valuation vs. Return On Equity
| 6164 Stock | TWD 13.95 0.05 0.36% |
For Ledtech Electronics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ledtech Electronics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ledtech Electronics Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ledtech Electronics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ledtech Electronics Corp over time as well as its relative position and ranking within its peers.
Ledtech |
Ledtech Electronics Corp Return On Equity vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Ledtech Electronics's current stock value. Our valuation model uses many indicators to compare Ledtech Electronics value to that of its competitors to determine the firm's financial worth. Ledtech Electronics Corp is the top company in current valuation category among its peers. It also is number one stock in return on equity category among its peers . The ratio of Current Valuation to Return On Equity for Ledtech Electronics Corp is about 31,957,649,573 . 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 Ledtech Electronics' earnings, one of the primary drivers of an investment's value.Ledtech Current Valuation vs. Competition
Ledtech Electronics Corp is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Information Technology industry is presently estimated at about 56.86 Billion. Ledtech Electronics claims roughly 747.81 Million in current valuation contributing just under 2% to equities under Information Technology industry.
Ledtech Return On Equity vs. Current Valuation
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.
Ledtech Electronics |
| = | 747.81 M |
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.
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.
Ledtech Electronics |
| = | 0.0234 |
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.
Ledtech Return On Equity Comparison
Ledtech Electronics is currently under evaluation in return on equity category among its peers.
Ledtech Electronics Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Ledtech Electronics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ledtech Electronics will eventually generate negative long term returns. The profitability progress is the general direction of Ledtech Electronics' change in net profit over the period of time. It can combine multiple indicators of Ledtech Electronics, 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.
Ledtech Electronics Corp. produces and sells LED lamps and displays in Taiwan and internationally. The company was founded in 1977 and is headquartered in New Taipei City, Taiwan. LEDTECH ELECTRONICS operates under Electronic Components classification in Taiwan and is traded on Taiwan Stock Exchange.
Ledtech Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Ledtech Electronics. 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 Ledtech Electronics 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 Ledtech Electronics' important profitability drivers and their relationship over time.
Use Ledtech Electronics 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 Ledtech Electronics 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 Ledtech Electronics will appreciate offsetting losses from the drop in the long position's value.Ledtech Electronics Pair Trading
Ledtech Electronics Corp Pair Trading Analysis
The ability to find closely correlated positions to Ledtech Electronics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ledtech Electronics 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 Ledtech Electronics - 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 Ledtech Electronics Corp to buy it.
The correlation of Ledtech Electronics 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 Ledtech Electronics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ledtech Electronics Corp 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 Ledtech Electronics 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 Ledtech Electronics position
In addition to having Ledtech Electronics 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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Additional Tools for Ledtech Stock Analysis
When running Ledtech Electronics' price analysis, check to measure Ledtech Electronics' 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 Ledtech Electronics is operating at the current time. Most of Ledtech Electronics' value examination focuses on studying past and present price action to predict the probability of Ledtech Electronics' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ledtech Electronics' price. Additionally, you may evaluate how the addition of Ledtech Electronics to your portfolios can decrease your overall portfolio volatility.