Hitachi Construction Price To Book vs. Price To Earning

HTCMY Stock  USD 51.89  0.49  0.95%   
Considering Hitachi Construction's profitability and operating efficiency indicators, Hitachi Construction Machinery may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in April. Profitability indicators assess Hitachi Construction's ability to earn profits and add value for shareholders.
For Hitachi Construction profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hitachi Construction to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hitachi Construction Machinery utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hitachi Construction's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hitachi Construction Machinery 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 Hitachi Construction's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hitachi Construction is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hitachi Construction'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.

Hitachi Construction Price To Earning vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Hitachi Construction's current stock value. Our valuation model uses many indicators to compare Hitachi Construction value to that of its competitors to determine the firm's financial worth.
Hitachi Construction Machinery is rated # 4 in price to book category among its peers. It is one of the top stocks in price to earning category among its peers reporting about  51.12  of Price To Earning per Price To Book. Comparative valuation analysis is a catch-all model that can be used if you cannot value Hitachi Construction by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Hitachi Construction'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.

Hitachi 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.

Hitachi Construction

P/B

 = 

MV Per Share

BV Per Share

 = 
0.90 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.

Hitachi Construction

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
45.85 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.

Hitachi Price To Earning Comparison

Hitachi Construction is currently under evaluation in price to earning category among its peers.

Hitachi Construction Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Hitachi Construction, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hitachi Construction will eventually generate negative long term returns. The profitability progress is the general direction of Hitachi Construction's change in net profit over the period of time. It can combine multiple indicators of Hitachi Construction, 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.
Hitachi Construction Machinery Co., Ltd., together with its subsidiaries, engages in the manufacture, sale, rental, and service of construction and transportation machinery, and other machines and devices worldwide. Hitachi Construction Machinery Co., Ltd. is a subsidiary of Hitachi, Ltd. Hitachi Construction operates under Farm Heavy Construction Machinery classification in the United States and is traded on OTC Exchange. It employs 24987 people.

Hitachi Profitability Driver Comparison

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

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Additional Tools for Hitachi Pink Sheet Analysis

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