British American Shares Owned By Institutions vs. Beta
| 0A76 Stock | 38.03 0.46 1.22% |
For British American profitability analysis, we use financial ratios and fundamental drivers that measure the ability of British American to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well British American Tobacco utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between British American's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of British American Tobacco over time as well as its relative position and ranking within its peers.
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British American Tobacco Beta vs. Shares Owned By Institutions Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining British American's current stock value. Our valuation model uses many indicators to compare British American value to that of its competitors to determine the firm's financial worth. British American Tobacco is number one stock in shares owned by institutions category among its peers. It also is number one stock in beta category among its peers totaling about 0.03 of Beta per Shares Owned By Institutions. The ratio of Shares Owned By Institutions to Beta for British American Tobacco is roughly 32.38 . 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 British American's earnings, one of the primary drivers of an investment's value.British Beta vs. Shares Owned By Institutions
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.
British American |
| = | 9.26 % |
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
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.
British American |
| = | 0.29 |
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.
British Beta Comparison
British American is currently under evaluation in beta category among its peers.
Beta Analysis
As returns on the market increase, British American's returns are expected to increase less than the market. However, during the bear market, the loss of holding British American is expected to be smaller as well.
British American Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in British American, profitability is also one of the essential criteria for including it into their portfolios because, without profit, British American will eventually generate negative long term returns. The profitability progress is the general direction of British American's change in net profit over the period of time. It can combine multiple indicators of British American, 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 Reported | Projected for Next Year | ||
| Net Income Applicable To Common Shares | 7.6 B | 7 B | |
| Income Tax Expense | 2.8 B | 2.4 B | |
| Net Loss | -14.4 B | -13.6 B | |
| Change To Netincome | 3.6 B | 2.6 B |
British Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on British American. 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 British American 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 British American's important profitability drivers and their relationship over time.
Use British American 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 British American 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 British American will appreciate offsetting losses from the drop in the long position's value.British American Pair Trading
British American Tobacco Pair Trading Analysis
The ability to find closely correlated positions to British American could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace British American 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 British American - 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 British American Tobacco to buy it.
The correlation of British American 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 British American moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if British American Tobacco 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 British American 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 British American position
In addition to having British American 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?
Run World Allocation Funds Thematic Idea Now
World Allocation Funds
Funds or Etfs investing in stocks, bonds, and cash of domestic markets as well as in markets of Canada, Japan, and Europe. The World Allocation Funds theme has 47 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 World Allocation Funds Theme or any other thematic opportunities.
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Additional Tools for British Stock Analysis
When running British American's price analysis, check to measure British American'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 British American is operating at the current time. Most of British American's value examination focuses on studying past and present price action to predict the probability of British American's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move British American's price. Additionally, you may evaluate how the addition of British American to your portfolios can decrease your overall portfolio volatility.