MIC Electronics Return On Equity vs. Current Valuation
| MICEL Stock | 86.60 4.04 4.89% |
For MIC Electronics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of MIC Electronics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well MIC Electronics Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between MIC Electronics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of MIC Electronics Limited over time as well as its relative position and ranking within its peers.
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MIC Electronics Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining MIC Electronics's current stock value. Our valuation model uses many indicators to compare MIC Electronics value to that of its competitors to determine the firm's financial worth. MIC Electronics Limited is considered to be number one stock in return on equity category among its peers. It also is rated top company in current valuation category among its peers reporting about 30,426,299,552 of Current Valuation per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value MIC Electronics by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for MIC Electronics' Stock. 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.MIC Current Valuation vs. Return On Equity
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.
MIC Electronics |
| = | 0.67 |
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.
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.
MIC Electronics |
| = | 20.23 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.
MIC Current Valuation vs Competition
MIC Electronics Limited is rated top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Information Technology industry is now estimated at about 306.73 Billion. MIC Electronics holds roughly 20.23 Billion in current valuation claiming about 7% of equities under Information Technology industry.
MIC Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on MIC Electronics. 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 MIC Electronics 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 MIC Electronics' important profitability drivers and their relationship over time.
Use MIC Electronics 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 MIC Electronics 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 MIC Electronics will appreciate offsetting losses from the drop in the long position's value.MIC Electronics Pair Trading
MIC Electronics Limited Pair Trading Analysis
The ability to find closely correlated positions to MIC Electronics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace MIC Electronics 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 MIC Electronics - 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 MIC Electronics Limited to buy it.
The correlation of MIC Electronics 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 MIC Electronics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if MIC Electronics 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 MIC Electronics 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 MIC Electronics position
In addition to having MIC Electronics 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 Business Supplies Thematic Idea Now
Business Supplies
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Business Supplies theme has 24 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 Business Supplies Theme or any other thematic opportunities.
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Other Information on Investing in MIC Stock
To fully project MIC Electronics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of MIC Electronics 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 MIC Electronics' income statement, its balance sheet, and the statement of cash flows.