Asahi Kaisei Price To Book vs. Price To Earning

AHKSY Stock  USD 14.25  0.33  2.26%   
Considering the key profitability indicators obtained from Asahi Kaisei's historical financial statements, Asahi Kaisei Corp may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Asahi Kaisei's ability to earn profits and add value for shareholders.
For Asahi Kaisei profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Asahi Kaisei to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Asahi Kaisei Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Asahi Kaisei's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Asahi Kaisei Corp 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 Asahi Kaisei's value and its price as these two are different measures arrived at by different means. Investors typically determine if Asahi Kaisei is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Asahi Kaisei'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.

Asahi Kaisei Corp Price To Earning vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Asahi Kaisei's current stock value. Our valuation model uses many indicators to compare Asahi Kaisei value to that of its competitors to determine the firm's financial worth.
Asahi Kaisei Corp is rated fourth in price to book category among its peers. It is rated below average in price to earning category among its peers reporting about  15.73  of Price To Earning per Price To Book. Comparative valuation analysis is a catch-all model that can be used if you cannot value Asahi Kaisei by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Asahi Kaisei's Pink Sheet. 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.

Asahi Price To Earning 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.

Asahi Kaisei

P/B

 = 

MV Per Share

BV Per Share

 = 
0.74 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 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.

Asahi Kaisei

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
11.69 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.

Asahi Price To Earning Comparison

Asahi Kaisei is currently under evaluation in price to earning category among its peers.

Asahi Kaisei Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Asahi Kaisei, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Asahi Kaisei will eventually generate negative long term returns. The profitability progress is the general direction of Asahi Kaisei's change in net profit over the period of time. It can combine multiple indicators of Asahi Kaisei, 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.
Asahi Kasei Corporation manufactures, processes, and sells chemical products in Japan and internationally. Asahi Kasei Corporation was founded in 1922 and is headquartered in Tokyo, Japan. Asahi Kaisai operates under Chemicals classification in the United States and is traded on OTC Exchange. It employs 46751 people.

Asahi Profitability Driver Comparison

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

Use Asahi Kaisei 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 Asahi Kaisei 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 Asahi Kaisei will appreciate offsetting losses from the drop in the long position's value.

Asahi Kaisei Pair Trading

Asahi Kaisei Corp Pair Trading Analysis

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

In addition to having Asahi Kaisei 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?

Run Electronics Thematic Idea Now

Electronics
Electronics Theme
Companies manufacturing electronic appliances and goods. The Electronics theme has 41 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 Electronics Theme or any other thematic opportunities.
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Additional Tools for Asahi Pink Sheet Analysis

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