NVR Price To Sales vs. Return On Equity
| NVE Stock | EUR 8,700 100.00 1.16% |
For NVR profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NVR to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NVR Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NVR's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NVR Inc over time as well as its relative position and ranking within its peers.
NVR |
NVR Inc Return On Equity vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining NVR's current stock value. Our valuation model uses many indicators to compare NVR value to that of its competitors to determine the firm's financial worth. NVR Inc is considered to be number one stock in price to sales category among its peers. It also is considered to be number one stock in return on equity category among its peers reporting about 0.36 of Return On Equity per Price To Sales. The ratio of Price To Sales to Return On Equity for NVR Inc is roughly 2.75 . 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 NVR's earnings, one of the primary drivers of an investment's value.NVR Return On Equity vs. Price To Sales
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
NVR |
| = | 1.46 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
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.
NVR |
| = | 0.53 |
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.
NVR Return On Equity Comparison
NVR is currently under evaluation in return on equity category among its peers.
NVR Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in NVR, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NVR will eventually generate negative long term returns. The profitability progress is the general direction of NVR's change in net profit over the period of time. It can combine multiple indicators of NVR, 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.
The company operates in two segments, Homebuilding and Mortgage Banking. NVR, Inc. was founded in 1980 and is headquartered in Reston, Virginia. NVR INC operates under Residential Construction classification in Germany and is traded on Frankfurt Stock Exchange. It employs 6600 people.
NVR Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on NVR. 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 NVR 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 NVR's important profitability drivers and their relationship over time.
Use NVR 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 NVR 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 NVR will appreciate offsetting losses from the drop in the long position's value.NVR Pair Trading
NVR Inc Pair Trading Analysis
The ability to find closely correlated positions to NVR could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NVR 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 NVR - 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 NVR Inc to buy it.
The correlation of NVR 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 NVR moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NVR Inc 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 NVR 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 NVR position
In addition to having NVR 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 Apparel Thematic Idea Now
Apparel
Companies manufacturing textile accessories and apparel products. The Apparel theme has 38 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 Apparel Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Information and Resources on Investing in NVR Stock
When determining whether NVR Inc is a strong investment it is important to analyze NVR's 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 NVR's future performance. For an informed investment choice regarding NVR Stock, refer to the following important reports:Check out Correlation Analysis. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
To fully project NVR's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of NVR Inc 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 NVR's income statement, its balance sheet, and the statement of cash flows.