Cathay Financial Price To Earning vs. Current Valuation

2882 Stock  TWD 69.00  0.10  0.15%   
Taking into consideration Cathay Financial's profitability measurements, Cathay Financial Holding may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Cathay Financial's ability to earn profits and add value for shareholders.
For Cathay Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cathay Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cathay Financial Holding utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cathay Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cathay Financial Holding over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Cathay Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cathay Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cathay Financial'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.

Cathay Financial Holding Current Valuation vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Cathay Financial's current stock value. Our valuation model uses many indicators to compare Cathay Financial value to that of its competitors to determine the firm's financial worth.
Cathay Financial Holding is rated fifth in price to earning category among its peers. It is rated below average in current valuation category among its peers . 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 Cathay Financial's earnings, one of the primary drivers of an investment's value.

Cathay Current Valuation 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.

Cathay Financial

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
10.43 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.
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.

Cathay Financial

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
(1.27 T)
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.

Cathay Current Valuation vs Competition

Cathay Financial Holding is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is presently estimated at about (148.44 Billion). Cathay Financial has negative current valuation of (1.27 Trillion) contributing less than 1% to the industry.

Cathay Financial Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Cathay Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cathay Financial will eventually generate negative long term returns. The profitability progress is the general direction of Cathay Financial's change in net profit over the period of time. It can combine multiple indicators of Cathay Financial, 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.
Cathay Financial Holding Co., Ltd., through its subsidiaries, provides various financial services in Taiwan. Cathay Financial Holding Co., Ltd. was founded in 2001 and is based in Taipei City, Taiwan. CATHAY FINANCIAL operates under Asset Management classification in Taiwan and is traded on Taiwan Stock Exchange. It employs 54520 people.

Cathay Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Cathay Financial. 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 Cathay Financial 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 Cathay Financial's important profitability drivers and their relationship over time.

Use Cathay Financial 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 Cathay Financial 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 Cathay Financial will appreciate offsetting losses from the drop in the long position's value.

Cathay Financial Pair Trading

Cathay Financial Holding Pair Trading Analysis

The ability to find closely correlated positions to Cathay Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cathay Financial 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 Cathay Financial - 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 Cathay Financial Holding to buy it.
The correlation of Cathay Financial 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 Cathay Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cathay Financial Holding 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 Cathay Financial 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Cathay Financial position

In addition to having Cathay Financial 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.

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Cigarettes
Cigarettes Theme
Tobacco makers and distributors across globe. The Cigarettes theme has 47 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 Cigarettes Theme or any other thematic opportunities.
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Additional Tools for Cathay Stock Analysis

When running Cathay Financial's price analysis, check to measure Cathay Financial's 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 Cathay Financial is operating at the current time. Most of Cathay Financial's value examination focuses on studying past and present price action to predict the probability of Cathay Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cathay Financial's price. Additionally, you may evaluate how the addition of Cathay Financial to your portfolios can decrease your overall portfolio volatility.