Unity Software Price To Sales vs. Price To Book

U2ST34 Stock  BRL 7.98  0.54  7.26%   
Based on the measurements of profitability obtained from Unity Software's financial statements, Unity Software 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 Unity Software's ability to earn profits and add value for shareholders.
For Unity Software profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Unity Software to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Unity Software utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Unity Software's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Unity Software over time as well as its relative position and ranking within its peers.
  
Check out World Market Map.
For information on how to trade Unity Stock refer to our How to Trade Unity Stock guide.
Please note, there is a significant difference between Unity Software's value and its price as these two are different measures arrived at by different means. Investors typically determine if Unity Software is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Unity Software'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.

Unity Software Price To Book vs. Price To Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Unity Software's current stock value. Our valuation model uses many indicators to compare Unity Software value to that of its competitors to determine the firm's financial worth.
Unity Software is rated first in price to sales category among its peers. It is rated first in price to book category among its peers fabricating about  0.12  of Price To Book per Price To Sales. The ratio of Price To Sales to Price To Book for Unity Software is roughly  8.54 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Unity Software by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Unity Software'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.

Unity Price To Book vs. Price To Sales

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.

Unity Software

P/S

 = 

MV Per Share

Revenue Per Share

 = 
50.72 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.
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.

Unity Software

P/B

 = 

MV Per Share

BV Per Share

 = 
5.94 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.

Unity Price To Book Comparison

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

Unity Software Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Unity Software, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Unity Software will eventually generate negative long term returns. The profitability progress is the general direction of Unity Software's change in net profit over the period of time. It can combine multiple indicators of Unity Software, 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.
Unity Software Inc. operates a real-time 3D development platform. The company was founded in 2004 and is headquartered in San Francisco, California. UNITY SOFTWRDRN operates under SoftwareApplication classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 4389 people.

Unity Profitability Driver Comparison

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

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

Unity Software Pair Trading

Unity Software Pair Trading Analysis

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

In addition to having Unity Software 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 Financials ETFs Thematic Idea Now

Financials ETFs
Financials ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Financials ETFs theme has 45 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 Financials ETFs Theme or any other thematic opportunities.
View All  Next Launch

Additional Information and Resources on Investing in Unity Stock

When determining whether Unity Software is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Unity Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Unity Software Stock. Highlighted below are key reports to facilitate an investment decision about Unity Software Stock:
Check out World Market Map.
For information on how to trade Unity Stock refer to our How to Trade Unity Stock guide.
You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
To fully project Unity Software's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Unity Software 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 Unity Software's income statement, its balance sheet, and the statement of cash flows.
Potential Unity Software investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Unity Software investors may work on each financial statement separately, they are all related. The changes in Unity Software's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Unity Software'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.