Britannia Industries Return On Equity vs. Book Value Per Share
| BRITANNIA | 4,941 17.50 0.36% |
For Britannia Industries profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Britannia Industries to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Britannia Industries Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Britannia Industries's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Britannia Industries Limited over time as well as its relative position and ranking within its peers.
Britannia |
Britannia Industries Book Value Per Share vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Britannia Industries's current stock value. Our valuation model uses many indicators to compare Britannia Industries value to that of its competitors to determine the firm's financial worth. Britannia Industries Limited is number one stock in return on equity category among its peers. It is rated third in book value per share category among its peers creating about 191.24 of Book Value Per Share per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Britannia Industries by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Britannia Industries' 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.Britannia Book Value Per Share 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.
Britannia Industries |
| = | 0.7 |
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.
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.
Britannia Industries |
| = | 133.26 X |
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
Britannia Book Value Per Share Comparison
Britannia Industries is currently under evaluation in book value per share category among its peers.
Britannia Industries Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Britannia Industries, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Britannia Industries will eventually generate negative long term returns. The profitability progress is the general direction of Britannia Industries' change in net profit over the period of time. It can combine multiple indicators of Britannia Industries, 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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 423.1 M | 444.3 M | |
| Operating Income | 56 B | 58.8 B | |
| Income Before Tax | 29.1 B | 30.6 B | |
| Total Other Income Expense Net | -26.9 B | -25.5 B | |
| Net Income | 21.4 B | 11.4 B | |
| Income Tax Expense | 7.8 B | 4.4 B | |
| Net Income From Continuing Ops | 21.3 B | 14.2 B | |
| Net Income Applicable To Common Shares | 26.7 B | 28 B | |
| Interest Income | 1.8 B | 1.6 B | |
| Net Interest Income | -1.6 B | -1.6 B | |
| Change To Netincome | -1.4 B | -1.5 B |
Britannia Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Britannia Industries. 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 Britannia Industries 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 Britannia Industries' important profitability drivers and their relationship over time.
Use Britannia Industries 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 Britannia Industries 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 Britannia Industries will appreciate offsetting losses from the drop in the long position's value.Britannia Industries Pair Trading
Britannia Industries Limited Pair Trading Analysis
The ability to find closely correlated positions to Britannia Industries could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Britannia Industries 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 Britannia Industries - 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 Britannia Industries Limited to buy it.
The correlation of Britannia Industries 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 Britannia Industries moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Britannia Industries 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 Britannia Industries 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 Britannia Industries position
In addition to having Britannia Industries 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 Britannia Stock
To fully project Britannia Industries' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Britannia Industries 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 Britannia Industries' income statement, its balance sheet, and the statement of cash flows.