Nufarm Price To Book vs. Beta
Taking into consideration Nufarm's profitability measurements, Nufarm Ltd ADR may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in June. Profitability indicators assess Nufarm's ability to earn profits and add value for shareholders.
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.
Please note, there is a significant difference between Nufarm's value and its price as these two are different measures arrived at by different means. Investors typically determine if Nufarm is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nufarm's 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.
For Nufarm profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nufarm to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nufarm Ltd ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nufarm's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nufarm Ltd ADR over time as well as its relative position and ranking within its peers.
Nufarm |
Nufarm Ltd ADR Beta vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Nufarm's current stock value. Our valuation model uses many indicators to compare Nufarm value to that of its competitors to determine the firm's financial worth. Nufarm Ltd ADR is considered to be number one stock in price to book category among related companies. It is considered to be number one stock in beta category among related companies totaling about 0.79 of Beta per Price To Book. The ratio of Price To Book to Beta for Nufarm Ltd ADR is roughly 1.27 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Nufarm by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Nufarm's Pink Sheet. 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 Nufarm's earnings, one of the primary drivers of an investment's value.Nufarm Beta vs. Price To Book
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.
Nufarm |
| = | 0.81 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.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Nufarm |
| = | 0.64 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Nufarm Beta Comparison
Nufarm is currently under evaluation in beta category among related companies.
Beta Analysis
As returns on the market increase, Nufarm's returns are expected to increase less than the market. However, during the bear market, the loss of holding Nufarm is expected to be smaller as well.
Nufarm Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Nufarm, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nufarm will eventually generate negative long term returns. The profitability progress is the general direction of Nufarm's change in net profit over the period of time. It can combine multiple indicators of Nufarm, 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.
Nufarm Limited, together with its subsidiaries, develops, manufactures, and sells crop protection solutions and seed technologies in Australia, New Zealand, Asia, Europe, and North America. Nufarm Limited was founded in 1916 and is headquartered in Laverton North, Australia. Nufarm operates under Agricultural Inputs classification in the United States and is traded on OTC Exchange. It employs 2700 people.
Nufarm Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Nufarm. 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 Nufarm 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 Nufarm's important profitability drivers and their relationship over time.
Use Nufarm 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 Nufarm 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 Nufarm will appreciate offsetting losses from the drop in the long position's value.Nufarm Pair Trading
Nufarm Ltd ADR Pair Trading Analysis
The ability to find closely correlated positions to Visa could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Visa 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 Visa - 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 Visa Class A to buy it.
The correlation of Visa 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 Visa moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Visa Class A 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 Visa 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 Nufarm position
In addition to having Nufarm 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 Theme ETFs Thematic Idea Now
Theme ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Theme ETFs theme has 491 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 Theme ETFs Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Consideration for investing in Nufarm Pink Sheet
If you are still planning to invest in Nufarm Ltd ADR check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Nufarm's history and understand the potential risks before investing.
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |