Wavestone Price To Earning vs. Price To Sales
| WAVE Stock | EUR 43.35 0.35 0.81% |
For Wavestone profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Wavestone to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Wavestone SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Wavestone's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Wavestone SA over time as well as its relative position and ranking within its peers.
Wavestone |
Wavestone SA Price To Sales vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Wavestone's current stock value. Our valuation model uses many indicators to compare Wavestone value to that of its competitors to determine the firm's financial worth. Wavestone SA is rated first in price to earning category among its peers. It is rated first in price to sales category among its peers fabricating about 0.05 of Price To Sales per Price To Earning. The ratio of Price To Earning to Price To Sales for Wavestone SA is roughly 22.12 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Wavestone by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Wavestone'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.Wavestone Price To Sales vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Wavestone |
| = | 38.27 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
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.
Wavestone |
| = | 1.73 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.
Wavestone Price To Sales Comparison
Wavestone is currently under evaluation in price to sales category among its peers.
Wavestone Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Wavestone, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Wavestone will eventually generate negative long term returns. The profitability progress is the general direction of Wavestone's change in net profit over the period of time. It can combine multiple indicators of Wavestone, 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.
Wavestone SA provides management and digital consulting services primarily in France and internationally. Wavestone SA was founded in 1990 and is based in Paris, France. WAVESTONE operates under Information Technology Services classification in France and is traded on Paris Stock Exchange. It employs 3453 people.
Wavestone Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Wavestone. 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 Wavestone 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 Wavestone's important profitability drivers and their relationship over time.
Use Wavestone 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 Wavestone 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 Wavestone will appreciate offsetting losses from the drop in the long position's value.Wavestone Pair Trading
Wavestone SA Pair Trading Analysis
The ability to find closely correlated positions to Wavestone could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Wavestone 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 Wavestone - 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 Wavestone SA to buy it.
The correlation of Wavestone 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 Wavestone moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Wavestone SA 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 Wavestone 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 Wavestone position
In addition to having Wavestone 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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Other Information on Investing in Wavestone Stock
To fully project Wavestone's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Wavestone SA 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 Wavestone's income statement, its balance sheet, and the statement of cash flows.