The Mirae Asset Venture Investment (KOSDAQ:100790) Share Price Has Gained 66% And Shareholders Are Hoping For More

If you want to compound wealth in the stock market, you can do so by buying an index fund. But investors can boost returns by picking market-beating companies to own shares in. For example, the Mirae Asset Venture Investment Co., Ltd. (KOSDAQ:100790) share price is up 66% in the last year, clearly besting the market return of around 29% (not including dividends). So that should have shareholders smiling. Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

See our latest analysis for Mirae Asset Venture Investment

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Mirae Asset Venture Investment was able to grow EPS by 163% in the last twelve months. This EPS growth is significantly higher than the 66% increase in the share price. Therefore, it seems the market isn't as excited about Mirae Asset Venture Investment as it was before. This could be an opportunity.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

Dive deeper into Mirae Asset Venture Investment's key metrics by checking this interactive graph of Mirae Asset Venture Investment's earnings, revenue and cash flow.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Mirae Asset Venture Investment's TSR for the last year was 72%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!

A Different Perspective

It's nice to see that Mirae Asset Venture Investment shareholders have gained 72% over the last year, including dividends. And the share price momentum remains respectable, with a gain of 42% in the last three months. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. It's always interesting to track share price performance over the longer term. But to understand Mirae Asset Venture Investment better, we need to consider many other factors. Take risks, for example - Mirae Asset Venture Investment has 3 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on KR exchanges.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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