Nokia Oyj Return On Equity vs. Price To Earning
| NOKIA Stock | EUR 4.23 0.05 1.20% |
For Nokia Oyj profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nokia Oyj to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nokia Oyj utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nokia Oyj's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nokia Oyj over time as well as its relative position and ranking within its peers.
Nokia |
Nokia Oyj Price To Earning vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Nokia Oyj's current stock value. Our valuation model uses many indicators to compare Nokia Oyj value to that of its competitors to determine the firm's financial worth. Nokia Oyj is considered to be number one stock in return on equity category among its peers. It also is considered to be number one stock in price to earning category among its peers reporting about 130.44 of Price To Earning per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Nokia Oyj by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Nokia Oyj's 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.Nokia Price To Earning 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.
Nokia Oyj |
| = | 0.22 |
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.
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.
Nokia Oyj |
| = | 28.24 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.
Nokia Price To Earning Comparison
Nokia Oyj is currently under evaluation in price to earning category among its peers.
Nokia Oyj Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Nokia Oyj, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nokia Oyj will eventually generate negative long term returns. The profitability progress is the general direction of Nokia Oyj's change in net profit over the period of time. It can combine multiple indicators of Nokia Oyj, 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.
Nokia Corporation provides mobile and fixed network solutions worldwide. Nokia Corporation was founded in 1865 and is headquartered in Espoo, Finland. Nokia operates under Communication Equipment classification in Finland and is traded on Helsinki Exchange. It employs 920 people.
Nokia Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Nokia Oyj. 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 Nokia Oyj 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 Nokia Oyj's important profitability drivers and their relationship over time.
Use Nokia Oyj 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 Nokia Oyj 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 Nokia Oyj will appreciate offsetting losses from the drop in the long position's value.Nokia Oyj Pair Trading
Nokia Oyj Pair Trading Analysis
The ability to find closely correlated positions to Nokia Oyj could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nokia Oyj 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 Nokia Oyj - 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 Nokia Oyj to buy it.
The correlation of Nokia Oyj 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 Nokia Oyj moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nokia Oyj 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 Nokia Oyj 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 Nokia Oyj position
In addition to having Nokia Oyj 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?
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Cash Cows
Entities with stable and reliable earnings or profits, which allows them to pay consistent dividends to their shareholders. The Cash Cows theme has 25 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 Cash Cows Theme or any other thematic opportunities.
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Other Information on Investing in Nokia Stock
To fully project Nokia Oyj's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Nokia Oyj 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 Nokia Oyj's income statement, its balance sheet, and the statement of cash flows.