DRDGOLD Current Valuation vs. Return On Asset
| DRD Stock | 1,686 78.00 4.42% |
For DRDGOLD profitability analysis, we use financial ratios and fundamental drivers that measure the ability of DRDGOLD to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well DRDGOLD Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between DRDGOLD's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of DRDGOLD Limited over time as well as its relative position and ranking within its peers.
DRDGOLD |
DRDGOLD Limited Return On Asset vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining DRDGOLD's current stock value. Our valuation model uses many indicators to compare DRDGOLD value to that of its competitors to determine the firm's financial worth. DRDGOLD Limited is rated as one of the top companies in current valuation category among its peers. It also is one of the top stocks in return on asset category among its peers . The ratio of Current Valuation to Return On Asset for DRDGOLD Limited is about 65,590,399,543 . 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 DRDGOLD's earnings, one of the primary drivers of an investment's value.DRDGOLD Current Valuation vs. Competition
DRDGOLD Limited is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Gold industry is currently estimated at about 477.96 Billion. DRDGOLD claims roughly 7.46 Billion in current valuation contributing just under 2% to equities under Gold industry.
DRDGOLD Return On Asset vs. Current Valuation
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.
DRDGOLD |
| = | 7.46 B |
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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
DRDGOLD |
| = | 0.11 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
DRDGOLD Return On Asset Comparison
DRDGOLD is currently under evaluation in return on asset category among its peers.
DRDGOLD Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on DRDGOLD. 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 DRDGOLD 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 DRDGOLD's important profitability drivers and their relationship over time.
Use DRDGOLD 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 DRDGOLD 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 DRDGOLD will appreciate offsetting losses from the drop in the long position's value.DRDGOLD Pair Trading
DRDGOLD Limited Pair Trading Analysis
The ability to find closely correlated positions to DRDGOLD could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace DRDGOLD 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 DRDGOLD - 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 DRDGOLD Limited to buy it.
The correlation of DRDGOLD 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 DRDGOLD moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if DRDGOLD Limited 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 DRDGOLD 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 DRDGOLD position
In addition to having DRDGOLD 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 Marijuana Thematic Idea Now
Marijuana
Small and mid-cap equities that are involved in production and delivery of Marijuana products. This theme is designed for investors that are willing to accept higher levels of market risk inherited by Marijuana production in the United States. The Marijuana theme has 49 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 Marijuana Theme or any other thematic opportunities.
| View All Next | Launch |
Other Information on Investing in DRDGOLD Stock
To fully project DRDGOLD's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of DRDGOLD Limited 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 DRDGOLD's income statement, its balance sheet, and the statement of cash flows.