Chung Hwa Price To Earning vs. Price To Book
| 1727 Stock | TWD 29.05 0.25 0.85% |
For Chung Hwa profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Chung Hwa to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Chung Hwa Chemical utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Chung Hwa's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Chung Hwa Chemical over time as well as its relative position and ranking within its peers.
Chung |
Chung Hwa Chemical Price To Book vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Chung Hwa's current stock value. Our valuation model uses many indicators to compare Chung Hwa value to that of its competitors to determine the firm's financial worth. Chung Hwa Chemical is number one stock in price to earning category among related companies. It is number one stock in price to book category among related companies fabricating about 0.07 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Chung Hwa Chemical is roughly 13.71 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Chung Hwa by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Chung Hwa'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. 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 Chung Hwa's earnings, one of the primary drivers of an investment's value.Chung 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.
Chung Hwa |
| = | 27.88 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.
Chung Hwa |
| = | 2.03 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.
Chung Price To Book Comparison
Chung Hwa is currently under evaluation in price to book category among related companies.
Chung Hwa Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Chung Hwa, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Chung Hwa will eventually generate negative long term returns. The profitability progress is the general direction of Chung Hwa's change in net profit over the period of time. It can combine multiple indicators of Chung Hwa, 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.
Chung Hwa Chemical Industrial Works, Ltd. engages in the manufacture and sale of chemical products in Taiwan and internationally. The company was founded in 1956 and is based in Taoyuan, Taiwan. CHUNG HWA operates under Chemicals classification in Taiwan and is traded on Taiwan Stock Exchange. It employs 333 people.
Chung Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Chung Hwa. 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 Chung Hwa 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 Chung Hwa's important profitability drivers and their relationship over time.
Use Chung Hwa 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 Chung Hwa 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 Chung Hwa will appreciate offsetting losses from the drop in the long position's value.Chung Hwa Pair Trading
Chung Hwa Chemical Pair Trading Analysis
The ability to find closely correlated positions to Chung Hwa could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Chung Hwa 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 Chung Hwa - 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 Chung Hwa Chemical to buy it.
The correlation of Chung Hwa 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 Chung Hwa moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Chung Hwa Chemical 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 Chung Hwa 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 Chung Hwa position
In addition to having Chung Hwa 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 Shipping Containers Thematic Idea Now
Shipping Containers
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Shipping Containers theme has 15 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 Shipping Containers Theme or any other thematic opportunities.
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Check out Trending Equities. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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When running Chung Hwa's price analysis, check to measure Chung Hwa'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 Chung Hwa is operating at the current time. Most of Chung Hwa's value examination focuses on studying past and present price action to predict the probability of Chung Hwa's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Chung Hwa's price. Additionally, you may evaluate how the addition of Chung Hwa to your portfolios can decrease your overall portfolio volatility.
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To fully project Chung Hwa's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Chung Hwa Chemical 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 Chung Hwa's income statement, its balance sheet, and the statement of cash flows.