Bayer AG Current Valuation vs. Return On Asset
| BAYZF Stock | USD 20.44 0.29 1.44% |
For Bayer AG profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Bayer AG to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Bayer AG utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Bayer AG's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Bayer AG over time as well as its relative position and ranking within its peers.
Bayer |
Bayer AG Return On Asset vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Bayer AG's current stock value. Our valuation model uses many indicators to compare Bayer AG value to that of its competitors to determine the firm's financial worth. Bayer AG is the top company in current valuation category among its peers. It also is number one stock in return on asset category among its peers . The ratio of Current Valuation to Return On Asset for Bayer AG is about 1,517,451,463,524 . 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 AG's earnings, one of the primary drivers of an investment's value.Bayer Current Valuation vs. Competition
Bayer AG is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Drug Manufacturers—General industry is currently estimated at about 130.15 Billion. Bayer AG totals roughly 87.41 Billion in current valuation claiming about 67% of equities under Drug Manufacturers—General industry.
Bayer Return On Asset vs. Current Valuation
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.
Bayer AG |
| = | 87.41 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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Bayer AG |
| = | 0.0576 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Bayer Return On Asset Comparison
Bayer AG is currently under evaluation in return on asset category among its peers.
Bayer AG Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Bayer AG, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Bayer AG will eventually generate negative long term returns. The profitability progress is the general direction of Bayer AG's change in net profit over the period of time. It can combine multiple indicators of Bayer AG, 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 Ag is traded on OTC Exchange in the United States.
Bayer Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Bayer AG. 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 AG 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 AG's important profitability drivers and their relationship over time.
Use Bayer AG 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 AG 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 AG will appreciate offsetting losses from the drop in the long position's value.Bayer AG Pair Trading
Bayer AG Pair Trading Analysis
The ability to find closely correlated positions to Bayer AG 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 AG 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 AG - 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 AG to buy it.
The correlation of Bayer AG 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 AG moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bayer AG 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 AG 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 AG position
In addition to having Bayer AG 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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Healthcare Funds
Funds or Etfs investing in medical and healthcare goods or services as well as hospital management or maintenance organizations. The Healthcare Funds theme has 37 constituents at this time.
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Other Information on Investing in Bayer Pink Sheet
To fully project Bayer AG's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Bayer AG 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 AG's income statement, its balance sheet, and the statement of cash flows.