AIB Group Return On Equity vs. Current Valuation
| A5G Stock | 5.37 0.02 0.37% |
For AIB Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of AIB Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well AIB Group plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between AIB Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of AIB Group plc over time as well as its relative position and ranking within its peers.
AIB |
AIB Group plc Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining AIB Group's current stock value. Our valuation model uses many indicators to compare AIB Group value to that of its competitors to determine the firm's financial worth. AIB Group plc is number one stock in return on equity category among its peers. It is rated second in current valuation category among its peers . 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 AIB Group's earnings, one of the primary drivers of an investment's value.AIB Current Valuation 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.
AIB Group |
| = | 0.0642 |
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.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
AIB Group |
| = | (17.61 B) |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
AIB Current Valuation vs Competition
AIB Group plc is rated second in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Banks-Regional industry is presently estimated at about 6.18 Billion. AIB Group has negative current valuation of (17.61 Billion) contributing less than 1% to the industry.
AIB Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on AIB Group. 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 AIB Group 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 AIB Group's important profitability drivers and their relationship over time.
Use AIB Group 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 AIB Group 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 AIB Group will appreciate offsetting losses from the drop in the long position's value.AIB Group Pair Trading
AIB Group plc Pair Trading Analysis
The ability to find closely correlated positions to AIB Group could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AIB Group 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 AIB Group - 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 AIB Group plc to buy it.
The correlation of AIB Group 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 AIB Group moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AIB Group plc 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 AIB Group 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 AIB Group position
In addition to having AIB Group 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 Education Thematic Idea Now
Education
Companies involved in apprenticeship, education, tutoring, schooling, online universities, and other learning services. The Education theme has 48 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 Education Theme or any other thematic opportunities.
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Other Information on Investing in AIB Stock
To fully project AIB Group's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of AIB Group plc 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 AIB Group's income statement, its balance sheet, and the statement of cash flows.