Castle Biosciences Price To Book vs. Return On Equity
| CSTL Stock | USD 29.63 1.28 4.14% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.63 | 0.7953 |
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For Castle Biosciences profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Castle Biosciences to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Castle Biosciences utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Castle Biosciences's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Castle Biosciences over time as well as its relative position and ranking within its peers.
Castle |
Is Biotechnology 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 Castle Biosciences. If investors know Castle 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 Castle Biosciences listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.93) | Earnings Share 0.21 | Revenue Per Share 11.34 | Quarterly Revenue Growth 0.395 | Return On Assets (0) |
The market value of Castle Biosciences is measured differently than its book value, which is the value of Castle that is recorded on the company's balance sheet. Investors also form their own opinion of Castle Biosciences' value that differs from its market value or its book value, called intrinsic value, which is Castle Biosciences' 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 Castle Biosciences' market value can be influenced by many factors that don't directly affect Castle Biosciences' 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 Castle Biosciences' value and its price as these two are different measures arrived at by different means. Investors typically determine if Castle Biosciences is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Castle Biosciences' 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.
Castle Biosciences Return On Equity vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Castle Biosciences's current stock value. Our valuation model uses many indicators to compare Castle Biosciences value to that of its competitors to determine the firm's financial worth. Castle Biosciences is rated fifth in price to book category among its peers. It is rated fourth in return on equity category among its peers reporting about 0.01 of Return On Equity per Price To Book. The ratio of Price To Book to Return On Equity for Castle Biosciences is roughly 133.52 . At this time, Castle Biosciences' Return On Equity is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Castle Biosciences 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.Castle 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.
Castle Biosciences |
| = | 1.96 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.
Castle Biosciences |
| = | 0.0147 |
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.
Castle Return On Equity Comparison
Castle Biosciences is currently under evaluation in return on equity category among its peers.
Castle Biosciences Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Castle Biosciences, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Castle Biosciences will eventually generate negative long term returns. The profitability progress is the general direction of Castle Biosciences' change in net profit over the period of time. It can combine multiple indicators of Castle Biosciences, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 136 K | 142.8 K | |
| Net Interest Income | 9.8 M | 10.3 M | |
| Interest Income | 9.8 M | 10.3 M | |
| Operating Income | -68 M | -64.6 M | |
| Net Loss | -75.5 M | -71.7 M | |
| Income Before Tax | -57.4 M | -54.5 M | |
| Total Other Income Expense Net | 10.6 M | 11.1 M | |
| Net Loss | -60.4 M | -57.4 M | |
| Net Loss | -57.5 M | -54.6 M | |
| Income Tax Expense | 101 K | 106 K | |
| Change To Netincome | 17.2 M | 18 M | |
| Net Loss | (2.14) | (2.25) | |
| Income Quality | 0.10 | 0.09 | |
| Net Income Per E B T | 1.00 | 1.07 |
Castle Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Castle Biosciences. 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 Castle Biosciences 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 Castle Biosciences' important profitability drivers and their relationship over time.
Use Castle Biosciences 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 Castle Biosciences 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 Castle Biosciences will appreciate offsetting losses from the drop in the long position's value.Castle Biosciences Pair Trading
Castle Biosciences Pair Trading Analysis
The ability to find closely correlated positions to Castle Biosciences could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Castle Biosciences 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 Castle Biosciences - 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 Castle Biosciences to buy it.
The correlation of Castle Biosciences 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 Castle Biosciences moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Castle Biosciences 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 Castle Biosciences 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 Castle Biosciences position
In addition to having Castle Biosciences 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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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Transportation theme has 61 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 Transportation Theme or any other thematic opportunities.
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Check out Trending Equities. For more information on how to buy Castle Stock please use our How to buy in Castle Stock guide.You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
To fully project Castle Biosciences' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Castle Biosciences 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 Castle Biosciences' income statement, its balance sheet, and the statement of cash flows.