MULTI CHEM Price To Earning vs. Book Value Per Share

MQR1 Stock  EUR 1.86  0.01  0.54%   
Taking into consideration MULTI CHEM's profitability measurements, MULTI CHEM LTD may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess MULTI CHEM's ability to earn profits and add value for shareholders.
For MULTI CHEM profitability analysis, we use financial ratios and fundamental drivers that measure the ability of MULTI CHEM to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well MULTI CHEM LTD utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between MULTI CHEM's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of MULTI CHEM LTD over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Please note, there is a significant difference between MULTI CHEM's value and its price as these two are different measures arrived at by different means. Investors typically determine if MULTI CHEM is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, MULTI CHEM'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.

MULTI CHEM LTD Book Value Per Share vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining MULTI CHEM's current stock value. Our valuation model uses many indicators to compare MULTI CHEM value to that of its competitors to determine the firm's financial worth.
MULTI CHEM LTD is considered to be number one stock in price to earning category among its peers. It also is considered to be number one stock in book value per share category among its peers creating about  0.20  of Book Value Per Share per Price To Earning. The ratio of Price To Earning to Book Value Per Share for MULTI CHEM LTD is roughly  5.08 . 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 MULTI CHEM's earnings, one of the primary drivers of an investment's value.

MULTI Book Value Per Share 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.

MULTI CHEM

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
7.66 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.
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.

MULTI CHEM

Book Value per Share

 = 

Common Equity

Average Shares

 = 
1.51 X
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.

MULTI Book Value Per Share Comparison

MULTI CHEM is currently under evaluation in book value per share category among its peers.

MULTI CHEM Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in MULTI CHEM, profitability is also one of the essential criteria for including it into their portfolios because, without profit, MULTI CHEM will eventually generate negative long term returns. The profitability progress is the general direction of MULTI CHEM's change in net profit over the period of time. It can combine multiple indicators of MULTI CHEM, 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.
Multi-Chem Limited, an investment holding company, distributes hardware and software related to Internet and network products in Singapore, the Peoples Republic of China, Australia, and internationally. Multi-Chem Limited was founded in 1985 and is headquartered in Singapore. MULTI CHEM operates under Computer Distribution classification in Germany and is traded on Frankfurt Stock Exchange. It employs 700 people.

MULTI Profitability Driver Comparison

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

Use MULTI CHEM 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 MULTI CHEM 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 MULTI CHEM will appreciate offsetting losses from the drop in the long position's value.

MULTI CHEM Pair Trading

MULTI CHEM LTD Pair Trading Analysis

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

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Other Information on Investing in MULTI Stock

To fully project MULTI CHEM's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of MULTI CHEM LTD 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 MULTI CHEM's income statement, its balance sheet, and the statement of cash flows.
Potential MULTI CHEM investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although MULTI CHEM investors may work on each financial statement separately, they are all related. The changes in MULTI CHEM's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on MULTI CHEM's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.