CGN Power Price To Earning vs. Return On Equity
| 94C Stock | EUR 0.28 0.00 0.00% |
For CGN Power profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CGN Power to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CGN Power Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CGN Power's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CGN Power Co over time as well as its relative position and ranking within its peers.
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CGN Power Return On Equity vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining CGN Power's current stock value. Our valuation model uses many indicators to compare CGN Power value to that of its competitors to determine the firm's financial worth. CGN Power Co is rated below average in price to earning category among its peers. It is rated below average in return on equity category among its peers reporting about 0.01 of Return On Equity per Price To Earning. The ratio of Price To Earning to Return On Equity for CGN Power Co is roughly 93.49 . 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 CGN Power's earnings, one of the primary drivers of an investment's value.CGN Return On 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.
CGN Power |
| = | 9.04 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.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
CGN Power |
| = | 0.0967 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
CGN Return On Equity Comparison
CGN Power is rated fifth in return on equity category among its peers.
CGN Power Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in CGN Power, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CGN Power will eventually generate negative long term returns. The profitability progress is the general direction of CGN Power's change in net profit over the period of time. It can combine multiple indicators of CGN Power, 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.
CGN Power Co., Ltd. generates and sells nuclear power in the Peoples Republic of China. CGN Power Co., Ltd. is a subsidiary of China General Nuclear Power Corporation. CGN POWER operates under Utilities - Independent Power Producers classification in Germany and is traded on Frankfurt Stock Exchange. It employs 18663 people.
CGN Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on CGN Power. 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 CGN Power 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 CGN Power's important profitability drivers and their relationship over time.
Use CGN Power 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 CGN Power 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 CGN Power will appreciate offsetting losses from the drop in the long position's value.CGN Power Pair Trading
CGN Power Co Pair Trading Analysis
The ability to find closely correlated positions to CGN Power could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CGN Power 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 CGN Power - 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 CGN Power Co to buy it.
The correlation of CGN Power 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 CGN Power moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CGN Power 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 CGN Power 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 CGN Power position
In addition to having CGN Power 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 CGN Stock
To fully project CGN Power's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of CGN Power 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 CGN Power's income statement, its balance sheet, and the statement of cash flows.