Cemtrex Return On Equity vs. Price To Earning
| CETX Stock | USD 3.20 0.66 17.10% |
For Cemtrex profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cemtrex to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cemtrex utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cemtrex's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cemtrex over time as well as its relative position and ranking within its peers.
Cemtrex |
Is Electronic Equipment, Instruments & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cemtrex. If investors know Cemtrex will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cemtrex listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Cemtrex is measured differently than its book value, which is the value of Cemtrex that is recorded on the company's balance sheet. Investors also form their own opinion of Cemtrex's value that differs from its market value or its book value, called intrinsic value, which is Cemtrex's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cemtrex's market value can be influenced by many factors that don't directly affect Cemtrex's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cemtrex's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cemtrex is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cemtrex'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.
Cemtrex Price To Earning vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Cemtrex's current stock value. Our valuation model uses many indicators to compare Cemtrex value to that of its competitors to determine the firm's financial worth. Cemtrex is rated below average in return on equity category among its peers. It is number one stock in price to earning category among its peers . 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 Cemtrex's earnings, one of the primary drivers of an investment's value.Cemtrex Price To Earning vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Cemtrex |
| = | -3.19 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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.
Cemtrex |
| = | 7.87 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.
Cemtrex Price To Earning Comparison
Cemtrex is currently under evaluation in price to earning category among its peers.
Cemtrex Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Cemtrex, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cemtrex will eventually generate negative long term returns. The profitability progress is the general direction of Cemtrex's change in net profit over the period of time. It can combine multiple indicators of Cemtrex, 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.
Cemtrex, Inc. operates as a technology company in the United States and internationally. Cemtrex, Inc. was incorporated in 1998 and is based in Brooklyn, New York. Cemtrex operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 344 people.
Cemtrex Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Cemtrex. 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 Cemtrex 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 Cemtrex's important profitability drivers and their relationship over time.
Use Cemtrex 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 Cemtrex 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 Cemtrex will appreciate offsetting losses from the drop in the long position's value.Cemtrex Pair Trading
Cemtrex Pair Trading Analysis
The ability to find closely correlated positions to Cemtrex could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cemtrex 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 Cemtrex - 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 Cemtrex to buy it.
The correlation of Cemtrex 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 Cemtrex moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cemtrex 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 Cemtrex 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 Cemtrex position
In addition to having Cemtrex 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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Additional Tools for Cemtrex Stock Analysis
When running Cemtrex's price analysis, check to measure Cemtrex's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cemtrex is operating at the current time. Most of Cemtrex's value examination focuses on studying past and present price action to predict the probability of Cemtrex's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cemtrex's price. Additionally, you may evaluate how the addition of Cemtrex to your portfolios can decrease your overall portfolio volatility.