Ferroglobe PLC Price To Book vs. Return On Equity
Based on the measurements of profitability obtained from Ferroglobe PLC's financial statements, Ferroglobe PLC may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in January. Profitability indicators assess Ferroglobe PLC's ability to earn profits and add value for shareholders.
Check out Risk vs Return Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as various price indices.
For Ferroglobe PLC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ferroglobe PLC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ferroglobe PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ferroglobe PLC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ferroglobe PLC over time as well as its relative position and ranking within its peers.
Ferroglobe |
Is Steel Works Etc 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 Ferroglobe PLC. If investors know Ferroglobe 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 Ferroglobe PLC 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 Ferroglobe PLC is measured differently than its book value, which is the value of Ferroglobe that is recorded on the company's balance sheet. Investors also form their own opinion of Ferroglobe PLC's value that differs from its market value or its book value, called intrinsic value, which is Ferroglobe PLC'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 Ferroglobe PLC's market value can be influenced by many factors that don't directly affect Ferroglobe PLC'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 Ferroglobe PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ferroglobe PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ferroglobe PLC'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.
Ferroglobe PLC Return On Equity vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Ferroglobe PLC's current stock value. Our valuation model uses many indicators to compare Ferroglobe PLC value to that of its competitors to determine the firm's financial worth. Ferroglobe PLC is rated below average in price to book category among its peers. It is rated # 2 in return on equity category among its peers reporting about 0.05 of Return On Equity per Price To Book. The ratio of Price To Book to Return On Equity for Ferroglobe PLC is roughly 21.23 . Comparative valuation analysis is a catch-all technique that is used if you cannot value Ferroglobe PLC 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.Ferroglobe 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.
Ferroglobe PLC |
| = | 1.03 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.
Ferroglobe PLC |
| = | 0.0486 |
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.
Ferroglobe Return On Equity Comparison
Ferroglobe PLC is currently under evaluation in return on equity category among its peers.
Ferroglobe PLC Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Ferroglobe PLC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ferroglobe PLC will eventually generate negative long term returns. The profitability progress is the general direction of Ferroglobe PLC's change in net profit over the period of time. It can combine multiple indicators of Ferroglobe PLC, 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.
Ferroglobe PLC operates in the silicon and specialty metals industry in the United States, Europe, and internationally. The company was incorporated in 2015 and is headquartered in London, the United Kingdom. Ferroglobe Plc is traded on NASDAQ Exchange in the United States.
Ferroglobe Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Ferroglobe PLC. 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 Ferroglobe PLC 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 Ferroglobe PLC's important profitability drivers and their relationship over time.
Use Ferroglobe PLC 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 Ferroglobe PLC 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 Ferroglobe PLC will appreciate offsetting losses from the drop in the long position's value.Ferroglobe PLC Pair Trading
Ferroglobe PLC Pair Trading Analysis
The ability to find closely correlated positions to Ferroglobe PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ferroglobe PLC 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 Ferroglobe PLC - 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 Ferroglobe PLC to buy it.
The correlation of Ferroglobe PLC 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 Ferroglobe PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ferroglobe PLC 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 Ferroglobe PLC 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 Ferroglobe PLC position
In addition to having Ferroglobe PLC 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 Personal Services Thematic Idea Now
Personal Services
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Personal Services 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 Personal Services Theme or any other thematic opportunities.
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Check out Risk vs Return Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as various price indices. You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Tools for Ferroglobe Stock
When running Ferroglobe PLC's price analysis, check to measure Ferroglobe PLC's 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 Ferroglobe PLC is operating at the current time. Most of Ferroglobe PLC's value examination focuses on studying past and present price action to predict the probability of Ferroglobe PLC's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ferroglobe PLC's price. Additionally, you may evaluate how the addition of Ferroglobe PLC to your portfolios can decrease your overall portfolio volatility.
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