SM Entertainment Price To Earning vs. Debt To Equity
| 041510 Stock | KRW 84,800 1,200 1.44% |
For SM Entertainment profitability analysis, we use financial ratios and fundamental drivers that measure the ability of SM Entertainment to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well SM Entertainment Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between SM Entertainment's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of SM Entertainment Co over time as well as its relative position and ranking within its peers.
041510 |
SM Entertainment Debt To Equity vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining SM Entertainment's current stock value. Our valuation model uses many indicators to compare SM Entertainment value to that of its competitors to determine the firm's financial worth. SM Entertainment Co is rated second in price to earning category among its peers. It is number one stock in debt to equity category among its peers fabricating about 0.01 of Debt To Equity per Price To Earning. The ratio of Price To Earning to Debt To Equity for SM Entertainment Co is roughly 140.24 . Comparative valuation analysis is a catch-all model that can be used if you cannot value SM Entertainment by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for SM Entertainment'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.041510 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.
SM Entertainment |
| = | 34.50 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.
SM Entertainment |
| = | 0.25 % |
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.
041510 Debt To Equity Comparison
SM Entertainment is currently under evaluation in debt to equity category among its peers.
SM Entertainment Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in SM Entertainment, profitability is also one of the essential criteria for including it into their portfolios because, without profit, SM Entertainment will eventually generate negative long term returns. The profitability progress is the general direction of SM Entertainment's change in net profit over the period of time. It can combine multiple indicators of SM Entertainment, 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.
SM Entertainment Co., Ltd. engages in musicsound production, talent management, and musicaudio content publication activities in South Korea and internationally. The company was founded in 1995 and is based in Seoul, South Korea. SME is traded on Korean Securities Dealers Automated Quotations in South Korea.
041510 Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on SM Entertainment. 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 SM Entertainment 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 SM Entertainment's important profitability drivers and their relationship over time.
Use SM Entertainment 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 SM Entertainment 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 SM Entertainment will appreciate offsetting losses from the drop in the long position's value.SM Entertainment Pair Trading
SM Entertainment Co Pair Trading Analysis
The ability to find closely correlated positions to SM Entertainment could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace SM Entertainment 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 SM Entertainment - 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 SM Entertainment Co to buy it.
The correlation of SM Entertainment 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 SM Entertainment moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if SM Entertainment 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 SM Entertainment 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 SM Entertainment position
In addition to having SM Entertainment 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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Other Information on Investing in 041510 Stock
To fully project SM Entertainment's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of SM Entertainment 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 SM Entertainment's income statement, its balance sheet, and the statement of cash flows.