NZX (NZSE:NZX) Risk Assessment

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What is NZX Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of NZX is: Low Risk: Strong fundamentals, worth long-term holding.

Competitive Comparison of NZX's Risk Assessment

For the Financial Data & Stock Exchanges subindustry, NZX's Risk Assessment, along with its competitors' market caps and Risk Assessment data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

NZX's Risk Assessment Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, NZX's Risk Assessment distribution charts can be found below:

* The bar in red indicates where NZX's Risk Assessment falls into.

NZX (NZSE:NZX) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

NZX Risk Assessment Related Terms

Thank you for viewing the detailed overview of NZX's Risk Assessment provided by GuruFocus.com. Please click on the following links to see related term pages.

NZX (NZSE:NZX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » NZX Ltd (NZSE:NZX) » Definitions » Risk Assessment

Comparable Companies

Traded in Other Exchanges

NZSTF:USA

Address

11 Cable Street, Level 1 / NZX Centre, P.O. Box 2959, Wellington, NZL, 6011

Website

https://www.nzx.com

NZX Ltd facilitates capital raising and securities trading. Its main function is to provide a market for the trading, clearing, and settlement of securities. It also provides market data relating to listed companies and indexes. It operates the New Zealand securities, derivatives, and energy markets, builds and maintains the infrastructure on which it operates, and provides a range of information and data to support market growth and development on a scale. NZX also provides wealth management services for New Zealand advisers via its Wealth Technologies business. Its segments include Markets, Funds Management, and Wealth Technologies.

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