Melco Crown Return On Asset vs. Earnings Per Share
Considering Melco Crown's profitability and operating efficiency indicators, Melco Crown Entertainment may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in May. Profitability indicators assess Melco Crown's ability to earn profits and add value for shareholders.
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in income.
Please note, there is a significant difference between Melco Crown's value and its price as these two are different measures arrived at by different means. Investors typically determine if Melco Crown is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Melco Crown'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.
For Melco Crown profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Melco Crown to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Melco Crown Entertainment utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Melco Crown's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Melco Crown Entertainment over time as well as its relative position and ranking within its peers.
Melco |
Melco Crown Entertainment Earnings Per Share vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Melco Crown's current stock value. Our valuation model uses many indicators to compare Melco Crown value to that of its competitors to determine the firm's financial worth. Melco Crown Entertainment is rated below average in return on asset category among related companies. It is rated below average in earnings per share category among related companies creating about 22.97 of Earnings Per Share per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value Melco Crown by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Melco Crown'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. 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 Melco Crown's earnings, one of the primary drivers of an investment's value.Melco Earnings Per Share vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Melco Crown |
| = | 0.0148 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Earnings per Share (EPS) denotes the portion of a company's earnings that is allocated to each share of common stock. To calculate Earnings per Share investors will need to take a company's net income, subtract any dividends for preferred stock, and divide it by the number of average outstanding shares. EPS is usually presented in two different ways: basic and diluted. Fully diluted Earnings per Share takes into account effects of warrants, options, and convertible securities and is generally viewed by analysts as a more accurate measure.
Melco Crown |
| = | 0.34 X |
Earnings per Share is one of the most critical measures of the firm's current share price and is used by investors to determine the overall company profitability, especially when compared to the EPS of similar companies.
Melco Earnings Per Share Comparison
Melco Crown is currently under evaluation in earnings per share category among related companies.
Melco Crown Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Melco Crown, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Melco Crown will eventually generate negative long term returns. The profitability progress is the general direction of Melco Crown's change in net profit over the period of time. It can combine multiple indicators of Melco Crown, 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.
Melco Crown Entertainment Limited, through its subsidiaries, develops, owns, and operates casino gaming and entertainment casino resort facilities in Asia.
Melco Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Melco Crown. 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 Melco Crown 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 Melco Crown's important profitability drivers and their relationship over time.
Use Melco Crown 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 Melco Crown 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 Melco Crown will appreciate offsetting losses from the drop in the long position's value.Melco Crown Pair Trading
Melco Crown Entertainment Pair Trading Analysis
The ability to find closely correlated positions to Sysco could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Sysco 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 Sysco - 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 Sysco to buy it.
The correlation of Sysco 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 Sysco moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Sysco 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 Sysco 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 Melco Crown position
In addition to having Melco Crown 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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Obamacare Repeal
Healthcare and drug manufacturing companies that will most likely be affected by the final stages of Obamacare repeal. The Obamacare Repeal theme has 56 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 Obamacare Repeal Theme or any other thematic opportunities.
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Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in income. Note that the Melco Crown Entertainment information on this page should be used as a complementary analysis to other Melco Crown's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Consideration for investing in Melco Stock
If you are still planning to invest in Melco Crown Entertainment check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Melco Crown's history and understand the potential risks before investing.
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