ARK Next Price To Sales vs. Price To Book
| ARKW Etf | USD 112.69 1.51 1.36% |
For ARK Next profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ARK Next to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ARK Next Generation utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ARK Next's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ARK Next Generation over time as well as its relative position and ranking within its peers.
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The market value of ARK Next Generation is measured differently than its book value, which is the value of ARK that is recorded on the company's balance sheet. Investors also form their own opinion of ARK Next's value that differs from its market value or its book value, called intrinsic value, which is ARK Next'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 ARK Next's market value can be influenced by many factors that don't directly affect ARK Next'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 ARK Next's value and its price as these two are different measures arrived at by different means. Investors typically determine if ARK Next is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ARK Next'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.
ARK Next Generation Price To Book vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining ARK Next's current stock value. Our valuation model uses many indicators to compare ARK Next value to that of its competitors to determine the firm's financial worth. ARK Next Generation is the top ETF in price to sales as compared to similar ETFs. It also is the top ETF in price to book as compared to similar ETFs fabricating about 0.87 of Price To Book per Price To Sales. The ratio of Price To Sales to Price To Book for ARK Next Generation is roughly 1.15 . Comparative valuation analysis is a catch-all technique that is used if you cannot value ARK Next 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.ARK Price To Book vs. Price To Sales
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.
ARK Next |
| = | 4.63 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.
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.
ARK Next |
| = | 4.04 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.
ARK Price To Book Comparison
ARK Next is currently under evaluation in price to book as compared to similar ETFs.
ARK Next Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in ARK Next, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ARK Next will eventually generate negative long term returns. The profitability progress is the general direction of ARK Next's change in net profit over the period of time. It can combine multiple indicators of ARK Next, 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.
The fund is an actively-managed exchange-traded fund that will invest under normal circumstances primarily in domestic and foreign equity securities of companies that are relevant to the funds investment theme of next generation internet. Ark Next is traded on NYSEARCA Exchange in the United States.
ARK Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on ARK Next. 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 ARK Next 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 ARK Next's important profitability drivers and their relationship over time.
Use ARK Next 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 ARK Next 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 ARK Next will appreciate offsetting losses from the drop in the long position's value.ARK Next Pair Trading
ARK Next Generation Pair Trading Analysis
The ability to find closely correlated positions to ARK Next could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ARK Next 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 ARK Next - 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 ARK Next Generation to buy it.
The correlation of ARK Next 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 ARK Next moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ARK Next Generation 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 ARK Next 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 ARK Next position
In addition to having ARK Next 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 Adviser Favorites Thematic Idea Now
Adviser Favorites
Financial advisors frequently recommend that individuals diversify their investment portfolios with a mix of different types of stocks. These can include blue-chip stocks, growth stocks, and dividend stocks. The Adviser Favorites theme has 17 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 Adviser Favorites Theme or any other thematic opportunities.
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To fully project ARK Next's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ARK Next Generation 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 ARK Next's income statement, its balance sheet, and the statement of cash flows.