Starbreeze Current Valuation vs. Price To Book

STAR-A Stock  SEK 0.20  0.01  5.26%   
Based on the measurements of profitability obtained from Starbreeze's financial statements, Starbreeze AB 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 Starbreeze's ability to earn profits and add value for shareholders.
For Starbreeze profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Starbreeze to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Starbreeze AB utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Starbreeze's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Starbreeze AB 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 Starbreeze's value and its price as these two are different measures arrived at by different means. Investors typically determine if Starbreeze is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Starbreeze'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.

Starbreeze AB Price To Book vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Starbreeze's current stock value. Our valuation model uses many indicators to compare Starbreeze value to that of its competitors to determine the firm's financial worth.
Starbreeze AB is currently regarded number one company in current valuation category among its peers. It also is currently regarded as top stock in price to book category among its peers . The ratio of Current Valuation to Price To Book for Starbreeze AB is about  67,907,707 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Starbreeze by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Starbreeze'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.

Starbreeze Current Valuation vs. Competition

Starbreeze AB is currently regarded number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Electronic Gaming & Multimedia industry is at this time estimated at about 10.66 Billion. Starbreeze holds roughly 741.29 Million in current valuation claiming about 7% of equities under Electronic Gaming & Multimedia industry.

Starbreeze Price To Book vs. Current Valuation

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.

Starbreeze

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
741.29 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.
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.

Starbreeze

P/B

 = 

MV Per Share

BV Per Share

 = 
10.92 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.

Starbreeze Price To Book Comparison

Starbreeze is currently under evaluation in price to book category among its peers.

Starbreeze Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Starbreeze, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Starbreeze will eventually generate negative long term returns. The profitability progress is the general direction of Starbreeze's change in net profit over the period of time. It can combine multiple indicators of Starbreeze, 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.
Starbreeze AB operates as an independent creator, publisher, and distributor of entertainment products in Sweden, rest of Europe, the United States, and Asia. Starbreeze AB was founded in 1998 and is headquartered in Stockholm, Sweden. Starbreeze operates under Electronic Gaming Multimedia classification in Sweden and is traded on Stockholm Stock Exchange. It employs 580 people.

Starbreeze Profitability Driver Comparison

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

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

Starbreeze Pair Trading

Starbreeze AB Pair Trading Analysis

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

In addition to having Starbreeze 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.

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Other Information on Investing in Starbreeze Stock

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