ABCO Electronics Price To Earning vs. Debt To Equity
| 036010 Stock | KRW 4,530 120.00 2.72% |
For ABCO Electronics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ABCO Electronics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ABCO Electronics Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ABCO Electronics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ABCO Electronics Co over time as well as its relative position and ranking within its peers.
ABCO |
ABCO Electronics Debt To Equity vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining ABCO Electronics's current stock value. Our valuation model uses many indicators to compare ABCO Electronics value to that of its competitors to determine the firm's financial worth. ABCO Electronics Co is number one stock in price to earning category among its peers. It also is number one stock in debt to equity category among its peers fabricating about 0.57 of Debt To Equity per Price To Earning. The ratio of Price To Earning to Debt To Equity for ABCO Electronics Co is roughly 1.74 . Comparative valuation analysis is a catch-all model that can be used if you cannot value ABCO Electronics by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for ABCO Electronics' 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.ABCO Debt To Equity 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.
ABCO Electronics |
| = | 8.72 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.
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
ABCO Electronics |
| = | 5.00 % |
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.
ABCO Debt To Equity Comparison
ABCO Electronics is currently under evaluation in debt to equity category among its peers.
ABCO Electronics Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in ABCO Electronics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ABCO Electronics will eventually generate negative long term returns. The profitability progress is the general direction of ABCO Electronics' change in net profit over the period of time. It can combine multiple indicators of ABCO Electronics, 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.
ABCO Electronics Co., Ltd. manufactures and sells passive electronic components in South Korea and internationally. ABCO Electronics Co., Ltd. was founded in 1973 and is headquartered in Seongnam, South Korea. ABEL is traded on Korean Securities Dealers Automated Quotations in South Korea.
ABCO Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on ABCO Electronics. 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 ABCO Electronics 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 ABCO Electronics' important profitability drivers and their relationship over time.
Use ABCO Electronics 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 ABCO Electronics 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 ABCO Electronics will appreciate offsetting losses from the drop in the long position's value.ABCO Electronics Pair Trading
ABCO Electronics Co Pair Trading Analysis
The ability to find closely correlated positions to ABCO Electronics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ABCO Electronics 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 ABCO Electronics - 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 ABCO Electronics Co to buy it.
The correlation of ABCO Electronics 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 ABCO Electronics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ABCO Electronics 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 ABCO Electronics 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 ABCO Electronics position
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Other Information on Investing in ABCO Stock
To fully project ABCO Electronics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ABCO Electronics 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 ABCO Electronics' income statement, its balance sheet, and the statement of cash flows.