Nova Minerals Price To Earning vs. Price To Book

NVAAF Stock  USD 0.18  0.02  10.00%   
Based on Nova Minerals' profitability indicators, Nova Minerals Limited may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Nova Minerals' ability to earn profits and add value for shareholders.
For Nova Minerals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nova Minerals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nova Minerals Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nova Minerals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nova Minerals Limited over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Please note, there is a significant difference between Nova Minerals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Nova Minerals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nova Minerals' 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.

Nova Minerals Limited Price To Book vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Nova Minerals's current stock value. Our valuation model uses many indicators to compare Nova Minerals value to that of its competitors to determine the firm's financial worth.
Nova Minerals Limited is rated below average in price to earning category among its peers. It is rated below average in price to book category among its peers fabricating about  0.36  of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Nova Minerals Limited is roughly  2.80 . 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 Nova Minerals' earnings, one of the primary drivers of an investment's value.

Nova Price To Book 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.

Nova Minerals

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
4.42 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.
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.

Nova Minerals

P/B

 = 

MV Per Share

BV Per Share

 = 
1.58 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.

Nova Price To Book Comparison

Nova Minerals is currently under evaluation in price to book category among its peers.

Nova Minerals Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Nova Minerals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nova Minerals will eventually generate negative long term returns. The profitability progress is the general direction of Nova Minerals' change in net profit over the period of time. It can combine multiple indicators of Nova Minerals, 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.
Nova Minerals Limited engages in the exploration of mineral properties in Australia, Canada, and the United States. Nova Minerals Limited was incorporated in 1987 and is based in Melbourne, Australia. Nova Minerals operates under Other Industrial Metals Mining classification in the United States and is traded on OTC Exchange.

Nova Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Nova Minerals. 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 Nova Minerals 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 Nova Minerals' important profitability drivers and their relationship over time.

Use Nova Minerals 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 Nova Minerals 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 Nova Minerals will appreciate offsetting losses from the drop in the long position's value.

Nova Minerals Pair Trading

Nova Minerals Limited Pair Trading Analysis

The ability to find closely correlated positions to Nova Minerals could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nova Minerals 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 Nova Minerals - 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 Nova Minerals Limited to buy it.
The correlation of Nova Minerals 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 Nova Minerals moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nova Minerals 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 Nova Minerals 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Nova Minerals position

In addition to having Nova Minerals 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 Adviser Favorites Thematic Idea Now

Adviser Favorites
Adviser Favorites Theme
Financial advisors frequently recommend that individuals diversify their investment portfolios with a mix of different types of stocks. These can include blue-chip stocks, growth stocks, and dividend stocks. The Adviser Favorites theme has 17 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 Adviser Favorites Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Nova Pink Sheet

When determining whether Nova Minerals Limited is a strong investment it is important to analyze Nova Minerals' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Nova Minerals' future performance. For an informed investment choice regarding Nova Pink Sheet, refer to the following important reports:
Check out Correlation Analysis.
You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
To fully project Nova Minerals' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Nova Minerals 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 Nova Minerals' income statement, its balance sheet, and the statement of cash flows.
Potential Nova Minerals investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Nova Minerals investors may work on each financial statement separately, they are all related. The changes in Nova Minerals's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Nova Minerals's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.