Plug Power Price To Book vs. Book Value Per Share
| PLUN Stock | 2.44 0.25 11.42% |
For Plug Power profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Plug Power to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Plug Power utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Plug Power's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Plug Power over time as well as its relative position and ranking within its peers.
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Plug Power Book Value Per Share vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Plug Power's current stock value. Our valuation model uses many indicators to compare Plug Power value to that of its competitors to determine the firm's financial worth. Plug Power is rated below average in price to book category among its peers. It is regarded fifth in book value per share category among its peers creating about 3.50 of Book Value Per Share per Price To Book. 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 Plug Power's earnings, one of the primary drivers of an investment's value.Plug Book Value Per Share vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
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| = | 2.08 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
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.
Plug Power |
| = | 7.27 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.
Plug Book Value Per Share Comparison
Plug Power is regarded fourth in book value per share category among its peers.
Plug Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Plug Power. 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 Plug Power 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 Plug Power's important profitability drivers and their relationship over time.
Use Plug Power 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 Plug Power 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 Plug Power will appreciate offsetting losses from the drop in the long position's value.Plug Power Pair Trading
Plug Power Pair Trading Analysis
The ability to find closely correlated positions to Plug Power could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Plug Power 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 Plug Power - 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 Plug Power to buy it.
The correlation of Plug Power 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 Plug Power moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Plug Power 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 Plug Power 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 Plug Power position
In addition to having Plug Power 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 Obamacare Thematic Idea Now
Obamacare
Health care services and providers including hospitals, clinics and nursing homes that hope to benefit from Obamacare program. The Obamacare theme has 37 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 Obamacare Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Plug Stock
When determining whether Plug Power is a strong investment it is important to analyze Plug Power's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Plug Power's future performance. For an informed investment choice regarding Plug Stock, refer to the following important reports:Check out Your Equity Center. For information on how to trade Plug Stock refer to our How to Trade Plug Stock guide.You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
To fully project Plug Power's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Plug Power 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 Plug Power's income statement, its balance sheet, and the statement of cash flows.