AES Corp Return On Equity vs. Current Valuation
| AESCDelisted Stock | USD 84.96 2.66 3.04% |
For AES Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of AES Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well AES Corp Unit utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between AES Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of AES Corp Unit over time as well as its relative position and ranking within its peers.
AES |
AES Corp Unit Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining AES Corp's current stock value. Our valuation model uses many indicators to compare AES Corp value to that of its competitors to determine the firm's financial worth. AES Corp Unit is number one stock in return on equity category among its peers. It also is the top company 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 AES Corp's earnings, one of the primary drivers of an investment's value.AES 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.
AES Corp |
| = | -0.0787 |
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.
AES Corp |
| = | 71.75 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.
AES Current Valuation vs Competition
AES Corp Unit is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Utilities industry is presently estimated at about 292.08 Billion. AES Corp totals roughly 71.75 Billion in current valuation claiming about 25% of Utilities industry.
AES Corp Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in AES Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, AES Corp will eventually generate negative long term returns. The profitability progress is the general direction of AES Corp's change in net profit over the period of time. It can combine multiple indicators of AES Corp, 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.
The AES Corporation operates as a diversified power generation and utility company. The AES Corporation was incorporated in 1981 and is headquartered in Arlington, Virginia. Aes Corp operates under UtilitiesDiversified classification in the United States and is traded on New York Stock Exchange. It employs 8450 people.
AES Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on AES Corp. 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 AES Corp 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 AES Corp's important profitability drivers and their relationship over time.
Use AES Corp 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 AES Corp 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 AES Corp will appreciate offsetting losses from the drop in the long position's value.AES Corp Pair Trading
AES Corp Unit Pair Trading Analysis
The ability to find closely correlated positions to AES Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AES Corp 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 AES Corp - 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 AES Corp Unit to buy it.
The correlation of AES Corp 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 AES Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AES Corp Unit 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 AES Corp 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 AES Corp position
In addition to having AES Corp 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 Insurance Providers Thematic Idea Now
Insurance Providers
Companies providing all types of insurance and insurance services. The Insurance Providers theme has 41 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 Insurance Providers Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Consideration for investing in AES Stock
If you are still planning to invest in AES Corp Unit check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the AES Corp's history and understand the potential risks before investing.
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |