Kongsberg Gruppen Price To Earning vs. Return On Equity
| KOG Stock | NOK 1,286 12.00 0.92% |
For Kongsberg Gruppen profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Kongsberg Gruppen to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Kongsberg Gruppen ASA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Kongsberg Gruppen's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Kongsberg Gruppen ASA over time as well as its relative position and ranking within its peers.
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Kongsberg Gruppen ASA Return On Equity vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Kongsberg Gruppen's current stock value. Our valuation model uses many indicators to compare Kongsberg Gruppen value to that of its competitors to determine the firm's financial worth. Kongsberg Gruppen ASA is currently regarded as number one stock in price to earning category among its peers. It also is currently regarded as number one stock in return on equity category among its peers reporting about 0.01 of Return On Equity per Price To Earning. The ratio of Price To Earning to Return On Equity for Kongsberg Gruppen ASA is roughly 104.90 . 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 Kongsberg Gruppen's earnings, one of the primary drivers of an investment's value.Kongsberg Return On Equity vs. Price To Earning
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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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.
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.
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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.
Kongsberg Return On Equity Comparison
Kongsberg Gruppen is currently under evaluation in return on equity category among its peers.
Kongsberg Gruppen Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Kongsberg Gruppen, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Kongsberg Gruppen will eventually generate negative long term returns. The profitability progress is the general direction of Kongsberg Gruppen's change in net profit over the period of time. It can combine multiple indicators of Kongsberg Gruppen, 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.
Kongsberg Gruppen ASA, together with its subsidiaries, provides technology systems and solutions to customers in deep-sea, digital, defence, merchant marine, oil and gas, fisheries, aerospace, and space industries. Kongsberg Gruppen ASA was founded in 1814 and is headquartered in Kongsberg, Norway. Kongsberg Gruppen operates under Aerospace Defense classification in Norway and is traded on Oslo Stock Exchange. It employs 6881 people.
Kongsberg Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Kongsberg Gruppen. 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 Kongsberg Gruppen 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 Kongsberg Gruppen's important profitability drivers and their relationship over time.
Use Kongsberg Gruppen 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 Kongsberg Gruppen 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 Kongsberg Gruppen will appreciate offsetting losses from the drop in the long position's value.Kongsberg Gruppen Pair Trading
Kongsberg Gruppen ASA Pair Trading Analysis
The ability to find closely correlated positions to Kongsberg Gruppen could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Kongsberg Gruppen 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 Kongsberg Gruppen - 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 Kongsberg Gruppen ASA to buy it.
The correlation of Kongsberg Gruppen 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 Kongsberg Gruppen moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Kongsberg Gruppen ASA 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 Kongsberg Gruppen 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 Kongsberg Gruppen position
In addition to having Kongsberg Gruppen 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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Other Information on Investing in Kongsberg Stock
To fully project Kongsberg Gruppen's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Kongsberg Gruppen ASA 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 Kongsberg Gruppen's income statement, its balance sheet, and the statement of cash flows.