Precise Biometrics Price To Book vs. Price To Sales
Based on Precise Biometrics' profitability indicators, Precise Biometrics AB may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in October. Profitability indicators assess Precise Biometrics' ability to earn profits and add value for shareholders.
Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Please note, there is a significant difference between Precise Biometrics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Precise Biometrics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Precise Biometrics' 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 Precise Biometrics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Precise Biometrics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Precise Biometrics AB utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Precise Biometrics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Precise Biometrics AB over time as well as its relative position and ranking within its peers.
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Precise Biometrics Price To Sales vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Precise Biometrics's current stock value. Our valuation model uses many indicators to compare Precise Biometrics value to that of its competitors to determine the firm's financial worth. Precise Biometrics AB is regarded third in price to book category among its peers. It also is regarded third in price to sales category among its peers fabricating about 1.53 of Price To Sales per Price To Book. 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 Precise Biometrics' earnings, one of the primary drivers of an investment's value.Precise Price To Sales 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.
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| = | 1.16 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.
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.
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| = | 1.77 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.
Precise Price To Sales Comparison
Precise Biometrics is currently under evaluation in price to sales category among its peers.
Precise Biometrics Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Precise Biometrics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Precise Biometrics will eventually generate negative long term returns. The profitability progress is the general direction of Precise Biometrics' change in net profit over the period of time. It can combine multiple indicators of Precise Biometrics, 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.
Precise Biometrics AB develops and sells biometric authentication solutions for peoples digital identity and fingerprints in mobile phones and smart cards. Precise Biometrics AB was founded in 1997 and is headquartered in Lund, Sweden. Precise Biometrics operates under Security Protection Services classification in Sweden and is traded on Stockholm Stock Exchange. It employs 27 people.
Precise Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Precise Biometrics. 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 Precise Biometrics 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 Precise Biometrics' important profitability drivers and their relationship over time.
Use Precise Biometrics 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 Precise Biometrics 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 Precise Biometrics will appreciate offsetting losses from the drop in the long position's value.Precise Biometrics Pair Trading
Precise Biometrics AB Pair Trading Analysis
The ability to find closely correlated positions to Precise Biometrics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Precise Biometrics 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 Precise Biometrics - 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 Precise Biometrics AB to buy it.
The correlation of Precise Biometrics 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 Precise Biometrics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Precise Biometrics 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 Precise Biometrics 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 Precise Biometrics position
In addition to having Precise Biometrics 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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Additional Tools for Precise Stock Analysis
When running Precise Biometrics' price analysis, check to measure Precise Biometrics' 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 Precise Biometrics is operating at the current time. Most of Precise Biometrics' value examination focuses on studying past and present price action to predict the probability of Precise Biometrics' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Precise Biometrics' price. Additionally, you may evaluate how the addition of Precise Biometrics to your portfolios can decrease your overall portfolio volatility.