NVIDIA Return On Equity vs. Price To Sales
| NVDC34 Stock | BRL 17.95 0.45 2.57% |
For NVIDIA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NVIDIA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NVIDIA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NVIDIA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NVIDIA over time as well as its relative position and ranking within its peers.
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NVIDIA Price To Sales vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining NVIDIA's current stock value. Our valuation model uses many indicators to compare NVIDIA value to that of its competitors to determine the firm's financial worth. NVIDIA is regarded third in return on equity category among its peers. It is regarded second in price to sales category among its peers fabricating about 294.44 of Price To Sales per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value NVIDIA by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for NVIDIA'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.NVIDIA Price To Sales 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.
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| = | 0.26 |
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 Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
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| = | 77.70 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
NVIDIA Price To Sales Comparison
NVIDIA is considered to be number one stock in price to sales category among its peers.
NVIDIA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in NVIDIA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NVIDIA will eventually generate negative long term returns. The profitability progress is the general direction of NVIDIA's change in net profit over the period of time. It can combine multiple indicators of NVIDIA, 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.
NVIDIA Corporation operates as a visual computing company worldwide. The company was founded in 1993 and is headquartered in Santa Clara, California. NVIDIA CORP operates under Semiconductors classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 13277 people.
NVIDIA Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on NVIDIA. 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 NVIDIA 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 NVIDIA's important profitability drivers and their relationship over time.
Use NVIDIA 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 NVIDIA 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 NVIDIA will appreciate offsetting losses from the drop in the long position's value.NVIDIA Pair Trading
NVIDIA Pair Trading Analysis
The ability to find closely correlated positions to NVIDIA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NVIDIA 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 NVIDIA - 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 NVIDIA to buy it.
The correlation of NVIDIA 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 NVIDIA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NVIDIA 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 NVIDIA 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 NVIDIA position
In addition to having NVIDIA 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 Consumer Discretionary ETFs Thematic Idea Now
Consumer Discretionary ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Consumer Discretionary ETFs theme has 29 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 Consumer Discretionary ETFs Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in NVIDIA Stock
When determining whether NVIDIA offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of NVIDIA's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Nvidia Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Nvidia Stock:Check out Correlation Analysis. For information on how to trade NVIDIA Stock refer to our How to Trade NVIDIA Stock guide.You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
To fully project NVIDIA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of NVIDIA 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 NVIDIA's income statement, its balance sheet, and the statement of cash flows.