Rakuten Gross Profit vs. Beta
| RKUNY Stock | USD 4.74 0.01 0.21% |
For Rakuten profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Rakuten to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Rakuten Inc ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Rakuten's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Rakuten Inc ADR over time as well as its relative position and ranking within its peers.
Rakuten |
Rakuten Inc ADR Beta vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Rakuten's current stock value. Our valuation model uses many indicators to compare Rakuten value to that of its competitors to determine the firm's financial worth. Rakuten Inc ADR is rated below average in gross profit category among related companies. It is rated third in beta category among related companies . Comparative valuation analysis is a catch-all model that can be used if you cannot value Rakuten by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Rakuten'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 Rakuten's earnings, one of the primary drivers of an investment's value.Rakuten Beta vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Rakuten |
| = | (284.66 B) |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
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.
Rakuten |
| = | 0.87 |
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.
Rakuten Beta Comparison
Rakuten is currently under evaluation in beta category among related companies.
Beta Analysis
Rakuten returns are very sensitive to returns on the market. As the market goes up or down, Rakuten is expected to follow.
Rakuten Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Rakuten, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Rakuten will eventually generate negative long term returns. The profitability progress is the general direction of Rakuten's change in net profit over the period of time. It can combine multiple indicators of Rakuten, 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.
Rakuten Group, Inc. offers internet services in Japan and internationally. Rakuten Group, Inc. was incorporated in 1997 and is headquartered in Tokyo, Japan. Rakuten operates under Internet Retail classification in the United States and is traded on OTC Exchange. It employs 28261 people.
Rakuten Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Rakuten. 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 Rakuten 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 Rakuten's important profitability drivers and their relationship over time.
Use Rakuten 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 Rakuten 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 Rakuten will appreciate offsetting losses from the drop in the long position's value.Rakuten Pair Trading
Rakuten Inc ADR Pair Trading Analysis
The ability to find closely correlated positions to Rakuten could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Rakuten 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 Rakuten - 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 Rakuten Inc ADR to buy it.
The correlation of Rakuten 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 Rakuten moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Rakuten Inc ADR 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 Rakuten 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 Rakuten position
In addition to having Rakuten 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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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Steel Works Etc theme has 54 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 Steel Works Etc Theme or any other thematic opportunities.
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Complementary Tools for Rakuten Pink Sheet analysis
When running Rakuten's price analysis, check to measure Rakuten'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 Rakuten is operating at the current time. Most of Rakuten's value examination focuses on studying past and present price action to predict the probability of Rakuten's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Rakuten's price. Additionally, you may evaluate how the addition of Rakuten to your portfolios can decrease your overall portfolio volatility.
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To fully project Rakuten's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Rakuten Inc ADR 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 Rakuten's income statement, its balance sheet, and the statement of cash flows.