ASX Current Valuation vs. Price To Earning
| AUX Stock | EUR 38.80 0.20 0.52% |
For ASX profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ASX to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ASX Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ASX's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ASX Limited over time as well as its relative position and ranking within its peers.
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ASX Limited Price To Earning vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining ASX's current stock value. Our valuation model uses many indicators to compare ASX value to that of its competitors to determine the firm's financial worth. ASX Limited is rated below average in current valuation category among its peers. It is rated third in price to earning category among its peers . 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 ASX's earnings, one of the primary drivers of an investment's value.ASX Current Valuation vs. Competition
ASX Limited is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financial Exchanges industry is presently estimated at about 149.12 Billion. ASX has negative current valuation of (766.45 Million) contributing less than 1% to the industry.
ASX Price To Earning 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.
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| = | (766.45 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.
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.
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| = | 31.55 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.
ASX Price To Earning Comparison
ASX is rated second in price to earning category among its peers.
ASX Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in ASX, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ASX will eventually generate negative long term returns. The profitability progress is the general direction of ASX's change in net profit over the period of time. It can combine multiple indicators of ASX, 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.
ASX Limited, a multi-asset class and integrated exchange group, provides listings, trading, clearing, settlement, registry, and information and technical services in Australia and internationally. ASX Limited was founded in 1987 and is based in Sydney, Australia. ASX LTD operates under Financial Exchanges classification in Germany and is traded on Frankfurt Stock Exchange. It employs 632 people.
ASX Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on ASX. 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 ASX 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 ASX's important profitability drivers and their relationship over time.
Use ASX 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 ASX 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 ASX will appreciate offsetting losses from the drop in the long position's value.ASX Pair Trading
ASX Limited Pair Trading Analysis
The ability to find closely correlated positions to ASX could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ASX 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 ASX - 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 ASX Limited to buy it.
The correlation of ASX 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 ASX moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ASX Limited 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 ASX 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 ASX position
In addition to having ASX 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 Money Funds Thematic Idea Now
Money Funds
Funds or Etfs that invest most if their asset in companies from financial sector such as commercial banks, insurance companies, investment funds, and real estate. The Money Funds theme has 32 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 Money Funds Theme or any other thematic opportunities.
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Other Information on Investing in ASX Stock
To fully project ASX's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ASX Limited 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 ASX's income statement, its balance sheet, and the statement of cash flows.