Photronics Price to Book vs. Price to Earning

PLAB
 Stock
  

USD 18.45  0.24  1.32%   

For Photronics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Photronics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Photronics utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Photronics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Photronics over time as well as its relative position and ranking within its peers. Please check Your Equity Center.
  
The current year Price to Sales Ratio is expected to grow to 1.19, whereas Return on Sales is forecasted to decline to 0.08. Photronics Consolidated Income is projected to increase significantly based on the last few years of reporting. The past year's Consolidated Income was at 70.42 Million. The current year Net Income Common Stock is expected to grow to about 52.2 M, whereas Accumulated Other Comprehensive Income is forecasted to decline to (5.9 M).

Photronics Revenues

527.87 Million

Is Photronics' 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 Photronics. If investors know Photronics 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 Photronics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.821
Market Capitalization
1.1 B
Quarterly Revenue Growth YOY
0.289
Return On Assets
0.0878
Return On Equity
0.1471
The market value of Photronics is measured differently than its book value, which is the value of Photronics that is recorded on the company's balance sheet. Investors also form their own opinion of Photronics' value that differs from its market value or its book value, called intrinsic value, which is Photronics' 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 Photronics' market value can be influenced by many factors that don't directly affect Photronics' 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 Photronics' value and its price as these two are different measures arrived at by different means. Investors typically determine Photronics value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Photronics' 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.

Photronics Price to Earning vs. Price to Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Photronics's current stock value. Our valuation model uses many indicators to compare Photronics value to that of its competitors to determine the firm's financial worth.
Photronics is considered to be number one stock in price to book category among related companies. It is considered to be number one stock in price to earning category among related companies reporting about  28.82  of Price to Earning per Price to Book. Photronics Price to Earnings Ratio are projected to slightly decrease based on the last few years of reporting. The past year's Price to Earnings Ratio were at 18.36. The current year Earnings before Tax is expected to grow to about 61.3 M, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are forecasted to decline to about 180.3 M.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Photronics by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Photronics' 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 Photronics' earnings, one of the primary drivers of an investment's value.

Photronics Price to Earning 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.
Photronics 
P/B 
 = 
MV Per Share 
BV Per Share 
1.33 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.
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.
Photronics 
P/E 
 = 
Market Value Per Share 
Earnings Per Share 
38.22 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.

Photronics Price to Earning Comparison

Photronics is currently under evaluation in price to earning category among related companies.

Photronics Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Photronics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Photronics will eventually generate negative long term returns. The profitability progress is the general direction of Photronics' change in net profit over the period of time. It can combine multiple indicators of Photronics, 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.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-5.7 M-5.9 M
Consolidated Income70.4 M76 M
Net Income49.9 M39.5 M
Net Income Common Stock48.4 M52.2 M
Net Income to Non Controlling Interests22.1 M23.8 M
Operating Income85.1 M67.7 M
Income Tax Expense6.6 M6.4 M
Net Income Per Employee28.9 K23.8 K

Photronics Profitability Driver Comparison

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

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

Photronics Pair Trading

Photronics Pair Trading Analysis

The ability to find closely correlated positions to Photronics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Photronics 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 Photronics - 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 Photronics to buy it.
The correlation of Photronics 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 Photronics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Photronics 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 Photronics 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 Photronics position

In addition to having Photronics 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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Iron
Iron Theme
Companies involved in production of steel and iron. The Iron theme has 40 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 Iron Theme or any other thematic opportunities.
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Please check Your Equity Center. Note that the Photronics information on this page should be used as a complementary analysis to other Photronics' 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 Stock Screener module to find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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To fully project Photronics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Photronics 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 Photronics' income statement, its balance sheet, and the statement of cash flows.
Potential Photronics investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Photronics investors may work on each financial statement separately, they are all related. The changes in Photronics's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Photronics'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.