Nikola Corp Revenue vs. Current Valuation
| NKLA Stock | USD 3.84 0.32 7.69% |
Total Revenue | First Reported 2019-06-30 | Previous Quarter 7.5 M | Current Value 31.3 M | Quarterly Volatility 9.3 M |
For Nikola Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nikola Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nikola Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nikola Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nikola Corp over time as well as its relative position and ranking within its peers.
Nikola |
Nikola Corp's Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
Is Construction Machinery & Heavy Transportation Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Nikola Corp. If investors know Nikola will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Nikola Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (25.00) | Revenue Per Share 1.247 | Quarterly Revenue Growth 1.039 | Return On Assets (0.34) | Return On Equity (1.65) |
The market value of Nikola Corp is measured differently than its book value, which is the value of Nikola that is recorded on the company's balance sheet. Investors also form their own opinion of Nikola Corp's value that differs from its market value or its book value, called intrinsic value, which is Nikola Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Nikola Corp's market value can be influenced by many factors that don't directly affect Nikola Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Nikola Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Nikola Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nikola Corp'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.
Nikola Corp Current Valuation vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Nikola Corp's current stock value. Our valuation model uses many indicators to compare Nikola Corp value to that of its competitors to determine the firm's financial worth. Nikola Corp is rated below average in revenue category among its peers. It is rated below average in current valuation category among its peers reporting about 6.77 of Current Valuation per Revenue. At present, Nikola Corp's Total Revenue is projected to increase significantly based on the last few years of reporting. 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 Nikola Corp's earnings, one of the primary drivers of an investment's value.Nikola Revenue vs. Competition
Nikola Corp is rated below average in revenue category among its peers. Market size based on revenue of Industrials industry is now estimated at about 202.87 Billion. Nikola Corp adds roughly 35.84 Million in revenue claiming only tiny portion of equities under Industrials industry.
Nikola Current Valuation vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Nikola Corp |
| = | 35.84 M |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Nikola Corp |
| = | 242.63 M |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Nikola Current Valuation vs Competition
Nikola Corp is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is now estimated at about 509.08 Billion. Nikola Corp adds roughly 242.63 Million in current valuation claiming only tiny portion of equities under Industrials industry.
Nikola Corp Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Nikola Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nikola Corp will eventually generate negative long term returns. The profitability progress is the general direction of Nikola Corp's change in net profit over the period of time. It can combine multiple indicators of Nikola Corp, 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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -162 K | -153.9 K | |
| Net Loss | -705.8 M | -670.5 M | |
| Income Tax Expense | 12 K | 12.6 K | |
| Net Interest Income | -78.2 M | -74.3 M | |
| Interest Income | 181.8 K | 172.7 K | |
| Operating Income | -642.5 M | -674.6 M | |
| Net Loss | -933.1 M | -886.4 M | |
| Income Before Tax | -848.2 M | -805.8 M | |
| Total Other Income Expense Net | -205.7 M | -195.4 M | |
| Net Loss | -864.6 M | -821.4 M | |
| Non Operating Income Net Other | -16 M | -15.2 M | |
| Change To Netincome | 361.3 M | 379.4 M | |
| Net Loss | (36.31) | (38.12) | |
| Income Quality | 0.58 | 0.74 | |
| Net Income Per E B T | 1.14 | 0.80 |
Nikola Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Nikola Corp. 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 Nikola Corp 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 Nikola Corp's important profitability drivers and their relationship over time.
Use Nikola Corp 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 Nikola Corp 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 Nikola Corp will appreciate offsetting losses from the drop in the long position's value.Nikola Corp Pair Trading
Nikola Corp Pair Trading Analysis
The ability to find closely correlated positions to Nikola Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nikola Corp 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 Nikola Corp - 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 Nikola Corp to buy it.
The correlation of Nikola Corp 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 Nikola Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nikola Corp 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 Nikola Corp 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 Nikola Corp position
In addition to having Nikola Corp 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?
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Check out Correlation Analysis. For information on how to trade Nikola Stock refer to our How to Trade Nikola Stock guide.You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
To fully project Nikola Corp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Nikola Corp 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 Nikola Corp's income statement, its balance sheet, and the statement of cash flows.