Petronas Chemicals Return On Equity vs. Price To Book
| 5183 Stock | 4.66 0.02 0.43% |
For Petronas Chemicals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Petronas Chemicals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Petronas Chemicals Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Petronas Chemicals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Petronas Chemicals Group over time as well as its relative position and ranking within its peers.
Petronas |
Petronas Chemicals Price To Book vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Petronas Chemicals's current stock value. Our valuation model uses many indicators to compare Petronas Chemicals value to that of its competitors to determine the firm's financial worth. Petronas Chemicals Group is number one stock in return on equity category among its peers. It is rated second in price to book category among its peers fabricating about 0.08 of Price To Book per Return On Equity. The ratio of Return On Equity to Price To Book for Petronas Chemicals Group is roughly 12.42 . 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 Petronas Chemicals' earnings, one of the primary drivers of an investment's value.Petronas Price To Book vs. Return On Equity
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.
Petronas Chemicals |
| = | 21.74 |
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.
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.
Petronas Chemicals |
| = | 1.75 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.
Petronas Price To Book Comparison
Petronas Chemicals is currently under evaluation in price to book category among its peers.
Petronas Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Petronas Chemicals. 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 Petronas Chemicals 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 Petronas Chemicals' important profitability drivers and their relationship over time.
Use Petronas Chemicals 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 Petronas Chemicals 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 Petronas Chemicals will appreciate offsetting losses from the drop in the long position's value.Petronas Chemicals Pair Trading
Petronas Chemicals Group Pair Trading Analysis
The ability to find closely correlated positions to Petronas Chemicals could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Petronas Chemicals 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 Petronas Chemicals - 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 Petronas Chemicals Group to buy it.
The correlation of Petronas Chemicals 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 Petronas Chemicals moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Petronas Chemicals 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 Petronas Chemicals 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 Petronas Chemicals position
In addition to having Petronas Chemicals 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 Money Funds Thematic Idea Now
Money Funds
Funds or Etfs that invest most if their asset in companies from financial sector such as commercial banks, insurance companies, investment funds, and real estate. The Money Funds theme has 34 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 Money Funds Theme or any other thematic opportunities.
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Other Information on Investing in Petronas Stock
To fully project Petronas Chemicals' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Petronas Chemicals 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 Petronas Chemicals' income statement, its balance sheet, and the statement of cash flows.