Petra Diamonds Return On Equity vs. Current Valuation
| PDLMF Stock | USD 0.35 0.00 0.00% |
For Petra Diamonds profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Petra Diamonds to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Petra Diamonds Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Petra Diamonds's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Petra Diamonds Limited over time as well as its relative position and ranking within its peers.
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Petra Diamonds Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Petra Diamonds's current stock value. Our valuation model uses many indicators to compare Petra Diamonds value to that of its competitors to determine the firm's financial worth. Petra Diamonds 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 1,754,252,534 of Current Valuation per Return On Equity. 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 Petra Diamonds' earnings, one of the primary drivers of an investment's value.Petra 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.
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| = | 0.19 |
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.
Petra Diamonds |
| = | 336.47 M |
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.
Petra Current Valuation vs Competition
Petra Diamonds Limited is rated top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Other Precious Metals & Mining industry is at this time estimated at about 465 Million. Petra Diamonds totals roughly 336.47 Million in current valuation claiming about 72% of all equities under Other Precious Metals & Mining industry.
Petra Diamonds Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Petra Diamonds, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Petra Diamonds will eventually generate negative long term returns. The profitability progress is the general direction of Petra Diamonds' change in net profit over the period of time. It can combine multiple indicators of Petra Diamonds, 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.
Petra Diamonds Limited engages in the mining, processing, sorting, and sale of rough diamonds in South Africa and Tanzania. Petra Diamonds Limited was incorporated in 1997 and is based in London, the United Kingdom. Petra Diamonds operates under Other Precious Metals Mining classification in the United States and is traded on OTC Exchange. It employs 3474 people.
Petra Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Petra Diamonds. 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 Petra Diamonds 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 Petra Diamonds' important profitability drivers and their relationship over time.
Use Petra Diamonds 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 Petra Diamonds 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 Petra Diamonds will appreciate offsetting losses from the drop in the long position's value.Petra Diamonds Pair Trading
Petra Diamonds Limited Pair Trading Analysis
The ability to find closely correlated positions to Petra Diamonds could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Petra Diamonds 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 Petra Diamonds - 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 Petra Diamonds Limited to buy it.
The correlation of Petra Diamonds 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 Petra Diamonds moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Petra Diamonds 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 Petra Diamonds 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 Petra Diamonds position
In addition to having Petra Diamonds 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 Recycling Thematic Idea Now
Recycling
West management companies as well as entities specializing in pollution control and recycling. The Recycling theme has 39 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 Recycling Theme or any other thematic opportunities.
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Other Information on Investing in Petra Pink Sheet
To fully project Petra Diamonds' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Petra Diamonds 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 Petra Diamonds' income statement, its balance sheet, and the statement of cash flows.