Fubon Financial Price To Earning vs. Return On Equity
| 2881 Stock | TWD 90.10 0.40 0.44% |
For Fubon Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Fubon Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Fubon Financial Holding utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Fubon Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Fubon Financial Holding over time as well as its relative position and ranking within its peers.
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Fubon Financial Holding Return On Equity vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Fubon Financial's current stock value. Our valuation model uses many indicators to compare Fubon Financial value to that of its competitors to determine the firm's financial worth. Fubon Financial Holding is number one stock in price to earning category among its peers. It also is number one stock in return on equity category among its peers reporting about 0.02 of Return On Equity per Price To Earning. The ratio of Price To Earning to Return On Equity for Fubon Financial Holding is roughly 42.57 . 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 Fubon Financial's earnings, one of the primary drivers of an investment's value.Fubon Return On Equity vs. Price To Earning
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.
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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.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
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For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Fubon Return On Equity Comparison
Fubon Financial is currently under evaluation in return on equity category among its peers.
Fubon Financial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Fubon Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Fubon Financial will eventually generate negative long term returns. The profitability progress is the general direction of Fubon Financial's change in net profit over the period of time. It can combine multiple indicators of Fubon Financial, 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.
Fubon Financial Holding Co., Ltd. provides various financial services in Taiwan, Asia, and internationally. Fubon Financial Holding Co., Ltd. was founded in 1961 and is based in Taipei, Taiwan. FUBON FINANCIAL is traded on Taiwan Stock Exchange in Taiwan.
Fubon Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Fubon Financial. 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 Fubon Financial 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 Fubon Financial's important profitability drivers and their relationship over time.
Use Fubon Financial 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 Fubon Financial 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 Fubon Financial will appreciate offsetting losses from the drop in the long position's value.Fubon Financial Pair Trading
Fubon Financial Holding Pair Trading Analysis
The ability to find closely correlated positions to Fubon Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Fubon Financial 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 Fubon Financial - 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 Fubon Financial Holding to buy it.
The correlation of Fubon Financial 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 Fubon Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Fubon Financial Holding 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 Fubon Financial 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 Fubon Financial position
In addition to having Fubon Financial 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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Companies involved in production of semiconductor and semiconductor materials. The Semiconductor theme has 42 constituents at this time.
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Additional Tools for Fubon Stock Analysis
When running Fubon Financial's price analysis, check to measure Fubon Financial'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 Fubon Financial is operating at the current time. Most of Fubon Financial's value examination focuses on studying past and present price action to predict the probability of Fubon Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Fubon Financial's price. Additionally, you may evaluate how the addition of Fubon Financial to your portfolios can decrease your overall portfolio volatility.