BBVA Banco Return On Equity vs. Price To Book
| BBAR Stock | 6,170 100.00 1.65% |
For BBVA Banco profitability analysis, we use financial ratios and fundamental drivers that measure the ability of BBVA Banco to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well BBVA Banco Frances utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between BBVA Banco's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of BBVA Banco Frances over time as well as its relative position and ranking within its peers.
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BBVA Banco Frances Price To Book vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining BBVA Banco's current stock value. Our valuation model uses many indicators to compare BBVA Banco value to that of its competitors to determine the firm's financial worth. BBVA Banco Frances is number one stock in return on equity category among its peers. It also is number one stock in price to book category among its peers fabricating about 13.97 of Price To Book per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value BBVA Banco by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for BBVA Banco'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.BBVA Price To Book vs. Return On Equity
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.
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| = | 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.
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.
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| = | 1.78 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.
BBVA Price To Book Comparison
BBVA Banco is currently under evaluation in price to book category among its peers.
BBVA Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on BBVA Banco. 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 BBVA Banco 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 BBVA Banco's important profitability drivers and their relationship over time.
Use BBVA Banco 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 BBVA Banco 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 BBVA Banco will appreciate offsetting losses from the drop in the long position's value.BBVA Banco Pair Trading
BBVA Banco Frances Pair Trading Analysis
The ability to find closely correlated positions to BBVA Banco could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace BBVA Banco 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 BBVA Banco - 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 BBVA Banco Frances to buy it.
The correlation of BBVA Banco 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 BBVA Banco moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if BBVA Banco Frances 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 BBVA Banco 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 BBVA Banco position
In addition to having BBVA Banco 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 Strategy ETFs Thematic Idea Now
Strategy ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Strategy ETFs theme has 1282 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 Strategy ETFs Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in BBVA Stock
When determining whether BBVA Banco Frances is a strong investment it is important to analyze BBVA Banco's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact BBVA Banco's future performance. For an informed investment choice regarding BBVA Stock, refer to the following important reports:Check out Trending Equities. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
To fully project BBVA Banco's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of BBVA Banco Frances 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 BBVA Banco's income statement, its balance sheet, and the statement of cash flows.