British American Revenue vs. Earnings Per Share
| B1TI34 Stock | BRL 45.60 0.55 1.19% |
For British American profitability analysis, we use financial ratios and fundamental drivers that measure the ability of British American to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well British American Tobacco utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between British American's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of British American Tobacco over time as well as its relative position and ranking within its peers.
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British American Tobacco Earnings Per Share vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining British American's current stock value. Our valuation model uses many indicators to compare British American value to that of its competitors to determine the firm's financial worth. British American Tobacco is rated below average in revenue category among its peers. It also is rated below average in earnings per share category among its peers . The ratio of Revenue to Earnings Per Share for British American Tobacco is about 1,406,571,742 . Comparative valuation analysis is a catch-all model that can be used if you cannot value British American by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for British American's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.British Revenue vs. Competition
British American Tobacco is rated below average in revenue category among its peers. Market size based on revenue of Tobacco industry is currently estimated at about 306.61 Billion. British American holds roughly 25.68 Billion in revenue claiming about 8% of equities listed under Tobacco industry.
British Earnings Per Share 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.
British American |
| = | 25.68 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.
Earnings per Share (EPS) denotes the portion of a company's earnings that is allocated to each share of common stock. To calculate Earnings per Share investors will need to take a company's net income, subtract any dividends for preferred stock, and divide it by the number of average outstanding shares. EPS is usually presented in two different ways: basic and diluted. Fully diluted Earnings per Share takes into account effects of warrants, options, and convertible securities and is generally viewed by analysts as a more accurate measure.
British American |
| = | 18.26 X |
Earnings per Share is one of the most critical measures of the firm's current share price and is used by investors to determine the overall company profitability, especially when compared to the EPS of similar companies.
British Earnings Per Share Comparison
British American is rated below average in earnings per share category among its peers.
British Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on British American. 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 British American 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 British American's important profitability drivers and their relationship over time.
Use British American 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 British American 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 British American will appreciate offsetting losses from the drop in the long position's value.British American Pair Trading
British American Tobacco Pair Trading Analysis
The ability to find closely correlated positions to British American could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace British American 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 British American - 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 British American Tobacco to buy it.
The correlation of British American 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 British American moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if British American Tobacco 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 British American 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 British American position
In addition to having British American 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 Currency Funds Thematic Idea Now
Currency Funds
Funds or Etfs investing in a single currency or combination of currencies from different countries in order to replicate respective foreign exchange markets. The Currency Funds 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 Currency Funds Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in British Stock
When determining whether British American Tobacco offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of British American's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of British American Tobacco Stock. Outlined below are crucial reports that will aid in making a well-informed decision on British American Tobacco Stock:Check out Trending Equities. You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
To fully project British American's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of British American Tobacco 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 British American's income statement, its balance sheet, and the statement of cash flows.