Altisource Asset Profitability Analysis

AAMC
 Stock
  

USD 15.76  1.24  7.29%   

For Altisource Asset profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Altisource Asset to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Altisource Asset Management utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Altisource Asset's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Altisource Asset Management over time as well as its relative position and ranking within its peers. Please continue to Trending Equities.
  
Is Altisource Asset's industry 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 Altisource Asset. If investors know Altisource 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 Altisource Asset 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 Altisource Asset Man is measured differently than its book value, which is the value of Altisource that is recorded on the company's balance sheet. Investors also form their own opinion of Altisource Asset's value that differs from its market value or its book value, called intrinsic value, which is Altisource Asset'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 Altisource Asset's market value can be influenced by many factors that don't directly affect Altisource Asset'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 Altisource Asset's value and its price as these two are different measures arrived at by different means. Investors typically determine Altisource Asset value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Altisource Asset'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.

Altisource Asset Man Price to Earning vs. Price to Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Altisource Asset's current stock value. Our valuation model uses many indicators to compare Altisource Asset value to that of its competitors to determine the firm's financial worth.
Altisource Asset Management is number one stock in price to sales category among related companies. It is number one stock in price to earning category among related companies reporting about  0.12  of Price to Earning per Price to Sales. The ratio of Price to Sales to Price to Earning for Altisource Asset Management is roughly  8.62 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Altisource Asset by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Altisource Asset'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 Altisource Asset's earnings, one of the primary drivers of an investment's value.

Altisource Price to Earning vs. Price to Sales

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.
Altisource Asset 
P/S 
 = 
MV Per Share 
Revenue Per Share 
52.52 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.
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.
Altisource Asset 
P/E 
 = 
Market Value Per Share 
Earnings Per Share 
6.09 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.

Altisource Asset Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Altisource Asset, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Altisource Asset will eventually generate negative long term returns. The profitability progress is the general direction of Altisource Asset's change in net profit over the period of time. It can combine multiple indicators of Altisource Asset, 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.
Altisource Asset Management Corporation is an alternative lending company that provides liquidity and capital to under-served market and portfolio management and corporate governance services to institutional investors in the United States. Altisource Asset Management Corporation was founded in 2012 and is headquartered in Christiansted, Virgin Islands with the additional in United States and India. Altisource Asset operates under Asset Management classification in the United States and is traded on AMEX Exchange. It employs 24 people.

Altisource Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Altisource Asset. 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 Altisource Asset 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 Altisource Asset's important profitability drivers and their relationship over time.

Use Altisource Asset 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 Altisource Asset 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 Altisource Asset will appreciate offsetting losses from the drop in the long position's value.

Altisource Asset Pair Trading

Altisource Asset Management Pair Trading Analysis

The ability to find closely correlated positions to Altisource Asset could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Altisource Asset 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 Altisource Asset - 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 Altisource Asset Management to buy it.
The correlation of Altisource Asset is a statistical measure of how it moves in relation to other equities. 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 Altisource Asset moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Altisource Asset Man 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 Altisource Asset 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Altisource Asset position

In addition to having Altisource Asset 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.

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Convertibles
Convertibles Theme
Funds or Etfs that invest in debt that is expected to be converted into a predetermined amount of the company equity at some future date. The Convertibles theme has 40 constituents at this time.
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Please continue to Trending Equities. You can also try ETF Directory module to find actively traded Exchange Traded Funds (ETF) from around the world.

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To fully project Altisource Asset's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Altisource Asset Man 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 Altisource Asset's income statement, its balance sheet, and the statement of cash flows.
Potential Altisource Asset investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Altisource Asset investors may work on each financial statement separately, they are all related. The changes in Altisource Asset's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Altisource Asset's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.