Associated British Revenue vs. Current Valuation
| ABF Stock | 2,198 8.00 0.37% |
Total Revenue | First Reported 1986-01-31 | Previous Quarter 9.7 B | Current Value 10.3 B | Quarterly Volatility 2.4 B |
For Associated British profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Associated British to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Associated British Foods utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Associated British's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Associated British Foods over time as well as its relative position and ranking within its peers.
Associated |
Associated British Foods Current Valuation vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Associated British's current stock value. Our valuation model uses many indicators to compare Associated British value to that of its competitors to determine the firm's financial worth. Associated British Foods is the top company in revenue category among its peers. It is rated second in current valuation category among its peers reporting about 0.90 of Current Valuation per Revenue. The ratio of Revenue to Current Valuation for Associated British Foods is roughly 1.11 . At present, Associated British's Total Revenue is projected to increase significantly based on the last few years of reporting. 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 Associated British's earnings, one of the primary drivers of an investment's value.Associated Revenue vs. Competition
Associated British Foods is the top company in revenue category among its peers. Market size based on revenue of Consumer Staples industry is presently estimated at about 30.51 Billion. Associated British totals roughly 20.07 Billion in revenue claiming about 66% of stocks in Consumer Staples industry.
Associated Current Valuation vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Associated British |
| = | 20.07 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
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.
Associated British |
| = | 18.13 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.
Associated Current Valuation vs Competition
Associated British Foods is rated second in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Consumer Staples industry is presently estimated at about 55.53 Billion. Associated British totals roughly 18.13 Billion in current valuation claiming about 33% of stocks in Consumer Staples industry.
Associated British Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Associated British, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Associated British will eventually generate negative long term returns. The profitability progress is the general direction of Associated British's change in net profit over the period of time. It can combine multiple indicators of Associated British, 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 | ||
| Accumulated Other Comprehensive Income | -428 M | 491 M | |
| Operating Income | 1.9 B | 811 M | |
| Income Before Tax | 1.9 B | 629 M | |
| Total Other Income Expense Net | -15 M | -124 M | |
| Net Income | 1.5 B | 686 M | |
| Income Tax Expense | 437 M | 221 M |
Associated Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Associated British. 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 Associated British 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 Associated British's important profitability drivers and their relationship over time.
Use Associated British 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 Associated British 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 Associated British will appreciate offsetting losses from the drop in the long position's value.Associated British Pair Trading
Associated British Foods Pair Trading Analysis
The ability to find closely correlated positions to Associated British could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Associated British 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 Associated British - 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 Associated British Foods to buy it.
The correlation of Associated British 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 Associated British moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Associated British Foods 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 Associated British 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 Associated British position
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Other Information on Investing in Associated Stock
To fully project Associated British's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Associated British Foods 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 Associated British's income statement, its balance sheet, and the statement of cash flows.