Rocket Internet Book Value Per Share vs. Operating Margin

RKET Stock  EUR 15.00  0.50  3.45%   
Based on Rocket Internet's profitability indicators, Rocket Internet SE 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 Rocket Internet's ability to earn profits and add value for shareholders.
For Rocket Internet profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Rocket Internet to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Rocket Internet SE utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Rocket Internet's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Rocket Internet SE over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Rocket Internet's value and its price as these two are different measures arrived at by different means. Investors typically determine if Rocket Internet is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rocket Internet'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.

Rocket Internet SE Operating Margin vs. Book Value Per Share Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Rocket Internet's current stock value. Our valuation model uses many indicators to compare Rocket Internet value to that of its competitors to determine the firm's financial worth.
Rocket Internet SE is currently regarded as top stock in book value per share category among its peers. It also is currently regarded as top stock in operating margin category among its peers . The ratio of Book Value Per Share to Operating Margin for Rocket Internet SE is about  200.18 . 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 Rocket Internet's earnings, one of the primary drivers of an investment's value.

Rocket Operating Margin vs. Book Value Per Share

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.

Rocket Internet

Book Value per Share

 = 

Common Equity

Average Shares

 = 
45.40 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.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Rocket Internet

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.23 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Rocket Operating Margin Comparison

Rocket Internet is currently under evaluation in operating margin category among its peers.

Rocket Profitability Driver Comparison

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

Use Rocket Internet 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 Rocket Internet 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 Rocket Internet will appreciate offsetting losses from the drop in the long position's value.

Rocket Internet Pair Trading

Rocket Internet SE Pair Trading Analysis

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

Use Investing Themes to Complement your Rocket Internet position

In addition to having Rocket Internet 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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Steel Works Etc Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Steel Works Etc theme has 54 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 Steel Works Etc Theme or any other thematic opportunities.
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Other Information on Investing in Rocket Stock

To fully project Rocket Internet's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Rocket Internet SE 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 Rocket Internet's income statement, its balance sheet, and the statement of cash flows.
Potential Rocket Internet investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Rocket Internet investors may work on each financial statement separately, they are all related. The changes in Rocket Internet's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Rocket Internet'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.