Ariel Fund Price To Earning vs. Price To Book
| ARGFX Fund | USD 82.37 0.11 0.13% |
For Ariel Fund profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ariel Fund to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ariel Fund Investor utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ariel Fund's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ariel Fund Investor over time as well as its relative position and ranking within its peers.
Ariel |
Ariel Fund Investor Price To Book vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Ariel Fund's current stock value. Our valuation model uses many indicators to compare Ariel Fund value to that of its competitors to determine the firm's financial worth. Ariel Fund Investor is rated below average in price to earning among similar funds. It also is rated below average in price to book among similar funds fabricating about 0.12 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Ariel Fund Investor is roughly 8.52 . 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 Ariel Fund's earnings, one of the primary drivers of an investment's value.Ariel Price To Book vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Ariel Fund |
| = | 16.18 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
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.
Ariel Fund |
| = | 1.90 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.
Ariel Price To Book Comparison
Ariel Fund is rated below average in price to book among similar funds.
Ariel Fund Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Ariel Fund, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ariel Fund will eventually generate negative long term returns. The profitability progress is the general direction of Ariel Fund's change in net profit over the period of time. It can combine multiple indicators of Ariel Fund, 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 fund invests in smallmid cap undervalued companies that show strong potential for growth. It invests primarily in equity securities of U.S. companies that have market capitalizations within the range of the companies in the Russell 2500TM Index, measured at the time of initial purchase.
Ariel Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Ariel Fund. 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 Ariel Fund 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 Ariel Fund's important profitability drivers and their relationship over time.
Use Ariel Fund 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 Ariel Fund 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 Ariel Fund will appreciate offsetting losses from the drop in the long position's value.Ariel Fund Pair Trading
Ariel Fund Investor Pair Trading Analysis
The ability to find closely correlated positions to Ariel Fund could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ariel Fund 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 Ariel Fund - 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 Ariel Fund Investor to buy it.
The correlation of Ariel Fund 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 Ariel Fund moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ariel Fund Investor 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 Ariel Fund 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 Ariel Fund position
In addition to having Ariel Fund 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 Railroads Thematic Idea Now
Railroads
Companies involved in manufacturing and maintenance of freight railroads and passenger trains as well as providing railroad services to public. The Railroads theme has 43 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 Railroads Theme or any other thematic opportunities.
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Other Information on Investing in Ariel Mutual Fund
To fully project Ariel Fund's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ariel Fund Investor 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 Ariel Fund's income statement, its balance sheet, and the statement of cash flows.
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