Acacia Research Return On Asset vs. Price To Sales
| ACTG Stock | USD 4.48 0.02 0.44% |
For Acacia Research profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Acacia Research to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Acacia Research utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Acacia Research's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Acacia Research over time as well as its relative position and ranking within its peers.
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Is Research & Consulting Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Acacia Research. If investors know Acacia will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Acacia Research listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Acacia Research is measured differently than its book value, which is the value of Acacia that is recorded on the company's balance sheet. Investors also form their own opinion of Acacia Research's value that differs from its market value or its book value, called intrinsic value, which is Acacia Research's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Acacia Research's market value can be influenced by many factors that don't directly affect Acacia Research's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Acacia Research's value and its price as these two are different measures arrived at by different means. Investors typically determine if Acacia Research is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Acacia Research'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.
Acacia Research Price To Sales vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Acacia Research's current stock value. Our valuation model uses many indicators to compare Acacia Research value to that of its competitors to determine the firm's financial worth. Acacia Research is rated third in return on asset category among its peers. It is number one stock in price to sales category among its peers fabricating about 65.13 of Price To Sales per Return On Asset. Comparative valuation analysis is a catch-all technique that is used if you cannot value Acacia Research by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Acacia Price To Sales vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
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| = | 0.0404 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
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| = | 2.63 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Acacia Price To Sales Comparison
Acacia Research is currently under evaluation in price to sales category among its peers.
Acacia Research Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Acacia Research, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Acacia Research will eventually generate negative long term returns. The profitability progress is the general direction of Acacia Research's change in net profit over the period of time. It can combine multiple indicators of Acacia Research, 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.
Acacia Research Corporation, together with its subsidiaries, invests in intellectual property and related absolute return assets and engages in the licensing and enforcement of patented technologies. Acacia Research Corporation was incorporated in 1993 and is based in New York, New York. Acacia Res-Acacia operates under Specialty Business Services classification in the United States and is traded on NASDAQ Exchange. It employs 287 people.
Acacia Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Acacia Research. 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 Acacia Research 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 Acacia Research's important profitability drivers and their relationship over time.
Use Acacia Research 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 Acacia Research 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 Acacia Research will appreciate offsetting losses from the drop in the long position's value.Acacia Research Pair Trading
Acacia Research Pair Trading Analysis
The ability to find closely correlated positions to Acacia Research could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Acacia Research 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 Acacia Research - 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 Acacia Research to buy it.
The correlation of Acacia Research 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 Acacia Research moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Acacia Research 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 Acacia Research 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 Acacia Research position
In addition to having Acacia Research 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?
Run Management Thematic Idea Now
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Companies providing management services to businesses. The Management theme has 39 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 Management Theme or any other thematic opportunities.
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Check out Trending Equities. For more detail on how to invest in Acacia Stock please use our How to Invest in Acacia Research guide.You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project Acacia Research's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Acacia Research 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 Acacia Research's income statement, its balance sheet, and the statement of cash flows.