New Wave Price To Earning vs. Return On Equity
| NEWA-B Stock | SEK 96.75 0.46 0.48% |
For New Wave profitability analysis, we use financial ratios and fundamental drivers that measure the ability of New Wave to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well New Wave Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between New Wave's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of New Wave Group over time as well as its relative position and ranking within its peers.
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New Wave Group Return On Equity vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining New Wave's current stock value. Our valuation model uses many indicators to compare New Wave value to that of its competitors to determine the firm's financial worth. New Wave Group is considered to be number one stock in price to earning category among its peers. It also is considered to be number one stock in return on equity category among its peers reporting about 0.02 of Return On Equity per Price To Earning. The ratio of Price To Earning to Return On Equity for New Wave Group is roughly 47.61 . Comparative valuation analysis is a catch-all model that can be used if you cannot value New Wave by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for New Wave's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.New 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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| = | 10.64 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.
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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| = | 0.22 |
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.
New Return On Equity Comparison
New Wave is currently under evaluation in return on equity category among its peers.
New Wave Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in New Wave, profitability is also one of the essential criteria for including it into their portfolios because, without profit, New Wave will eventually generate negative long term returns. The profitability progress is the general direction of New Wave's change in net profit over the period of time. It can combine multiple indicators of New Wave, 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.
New Wave Group AB designs, acquires, and develops brands and products in the corporate promo, sports, gifts, and home furnishings sectors in Sweden, the United States, rest of Nordic countries, Central Europe, Southern Europe, and internationally. New Wave Group AB was founded in 1990 and is headquartered in Gothenburg, Sweden. New Wave operates under Diversified Wholesale And Retail classification in Sweden and is traded on Stockholm Stock Exchange. It employs 2597 people.
New Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on New Wave. 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 New Wave 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 New Wave's important profitability drivers and their relationship over time.
Use New Wave 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 New Wave 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 New Wave will appreciate offsetting losses from the drop in the long position's value.New Wave Pair Trading
New Wave Group Pair Trading Analysis
The ability to find closely correlated positions to New Wave could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace New Wave 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 New Wave - 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 New Wave Group to buy it.
The correlation of New Wave 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 New Wave moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if New Wave Group 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 New Wave 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 New Wave position
In addition to having New Wave 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 Healthcare Thematic Idea Now
Healthcare
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Healthcare 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 Healthcare Theme or any other thematic opportunities.
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Other Information on Investing in New Stock
To fully project New Wave's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of New Wave Group 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 New Wave's income statement, its balance sheet, and the statement of cash flows.