Associated British Price To Book vs. Current Valuation
| AFO1 Stock | 25.51 0.45 1.73% |
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. Price To Book 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 rated second in price to book category among its peers. It is rated third in current valuation category among its peers reporting about 15,149,559,983 of Current Valuation per Price To Book. 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 Current Valuation vs. Price To Book
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.
Associated British |
| = | 1.12 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.
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 |
| = | 17.04 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 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
In addition to having Associated British 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 Utilities Thematic Idea Now
Utilities
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Utilities theme has 61 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 Utilities Theme or any other thematic opportunities.
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Additional Tools for Associated Stock Analysis
When running Associated British's price analysis, check to measure Associated British'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 Associated British is operating at the current time. Most of Associated British's value examination focuses on studying past and present price action to predict the probability of Associated British's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Associated British's price. Additionally, you may evaluate how the addition of Associated British to your portfolios can decrease your overall portfolio volatility.