Bayer Aktiengesellscha Shares Owned By Institutions vs. Return On Equity
| BAYA Stock | EUR 4.90 0.22 4.70% |
For Bayer Aktiengesellscha profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Bayer Aktiengesellscha to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Bayer Aktiengesellschaft utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Bayer Aktiengesellscha's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Bayer Aktiengesellschaft over time as well as its relative position and ranking within its peers.
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Bayer Aktiengesellschaft Return On Equity vs. Shares Owned By Institutions Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Bayer Aktiengesellscha's current stock value. Our valuation model uses many indicators to compare Bayer Aktiengesellscha value to that of its competitors to determine the firm's financial worth. Bayer Aktiengesellschaft is rated fourth in shares owned by institutions category among its peers. It also is rated fourth in return on equity category among its peers reporting about 1.30 of Return On Equity per Shares Owned By Institutions. 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 Bayer Aktiengesellscha's earnings, one of the primary drivers of an investment's value.Bayer Return On Equity vs. Shares Owned By Institutions
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.
Bayer Aktiengesellscha |
| = | 0.10 % |
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
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.
Bayer Aktiengesellscha |
| = | 0.13 |
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.
Bayer Return On Equity Comparison
Bayer Aktiengesellscha is currently under evaluation in return on equity category among its peers.
Bayer Aktiengesellscha Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Bayer Aktiengesellscha, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Bayer Aktiengesellscha will eventually generate negative long term returns. The profitability progress is the general direction of Bayer Aktiengesellscha's change in net profit over the period of time. It can combine multiple indicators of Bayer Aktiengesellscha, 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.
Bayer Aktiengesellschaft, together its subsidiaries, operates as a life science company worldwide. Bayer Aktiengesellschaft was founded in 1863 and is headquartered in Leverkusen, Germany. BAYER ADR is traded on Frankfurt Stock Exchange in Germany.
Bayer Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Bayer Aktiengesellscha. 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 Bayer Aktiengesellscha 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 Bayer Aktiengesellscha's important profitability drivers and their relationship over time.
Use Bayer Aktiengesellscha 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 Bayer Aktiengesellscha 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 Bayer Aktiengesellscha will appreciate offsetting losses from the drop in the long position's value.Bayer Aktiengesellscha Pair Trading
Bayer Aktiengesellschaft Pair Trading Analysis
The ability to find closely correlated positions to Bayer Aktiengesellscha could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Bayer Aktiengesellscha 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 Bayer Aktiengesellscha - 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 Bayer Aktiengesellschaft to buy it.
The correlation of Bayer Aktiengesellscha 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 Bayer Aktiengesellscha moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bayer Aktiengesellschaft 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 Bayer Aktiengesellscha 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 Bayer Aktiengesellscha position
In addition to having Bayer Aktiengesellscha 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?
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Other Information on Investing in Bayer Stock
To fully project Bayer Aktiengesellscha's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Bayer Aktiengesellschaft 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 Bayer Aktiengesellscha's income statement, its balance sheet, and the statement of cash flows.