Prospect Global Price To Book vs. Beta
Taking into consideration Prospect Global's profitability measurements, Prospect Global Resources may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in June. Profitability indicators assess Prospect Global's ability to earn profits and add value for shareholders.
Check out Your Equity Center 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 metropolitan statistical area.
Please note, there is a significant difference between Prospect Global's value and its price as these two are different measures arrived at by different means. Investors typically determine if Prospect Global is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Prospect Global'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 Prospect Global profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Prospect Global to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Prospect Global Resources utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Prospect Global's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Prospect Global Resources over time as well as its relative position and ranking within its peers.
Prospect |
Prospect Global Resources Beta vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Prospect Global's current stock value. Our valuation model uses many indicators to compare Prospect Global value to that of its competitors to determine the firm's financial worth. Prospect Global Resources is considered to be number one stock in price to book category among related companies. It is considered to be number one stock in beta category among related companies . Comparative valuation analysis is a catch-all model that can be used if you cannot value Prospect Global by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Prospect Global's Pink Sheet. 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 Prospect Global's earnings, one of the primary drivers of an investment's value.Prospect Beta vs. Price To Book
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.
Prospect Global |
| = | 18.58 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.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Prospect Global |
| = | -27.5 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Prospect Beta Comparison
Prospect Global is currently under evaluation in beta category among related companies.
Beta Analysis
As returns on the market increase, returns on owning Prospect Global are expected to decrease by larger amounts. On the other hand, during market turmoil, Prospect Global is expected to outperform it.
Prospect Global Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Prospect Global, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Prospect Global will eventually generate negative long term returns. The profitability progress is the general direction of Prospect Global's change in net profit over the period of time. It can combine multiple indicators of Prospect Global, 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.
Prospect Global Resources, Inc., a development stage company, engages in the exploration, development, and mining of natural resources and related fertilizer materials and products in the United States. The company was incorporated in 2008 and is based in Denver, Colorado. Prospect Global operates under Industrial Metals Minerals classification in USA and is traded on OTC Market. It employs 12 people.
Prospect Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Prospect Global. 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 Prospect Global 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 Prospect Global's important profitability drivers and their relationship over time.
Use Prospect Global 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 Prospect Global 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 Prospect Global will appreciate offsetting losses from the drop in the long position's value.Prospect Global Pair Trading
Prospect Global Resources Pair Trading Analysis
The ability to find closely correlated positions to Nike could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nike 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 Nike - 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 Nike Inc to buy it.
The correlation of Nike 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 Nike moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nike Inc 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 Nike 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 Prospect Global position
In addition to having Prospect Global 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 Utilities Thematic Idea Now
Utilities
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Utilities theme has 61 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 Utilities Theme or any other thematic opportunities.
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Check out Your Equity Center 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 metropolitan statistical area. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Consideration for investing in Prospect Pink Sheet
If you are still planning to invest in Prospect Global Resources 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 Prospect Global's history and understand the potential risks before investing.
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