Chunghwa Telecom Price To Book vs. Operating Margin

CHT Stock  USD 38.33  0.03  0.08%   
Taking into consideration Chunghwa Telecom's profitability measurements, Chunghwa Telecom Co is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in December. Profitability indicators assess Chunghwa Telecom's ability to earn profits and add value for shareholders. Operating Cash Flow Sales Ratio is likely to gain to 0.44 in 2024, whereas Price To Sales Ratio is likely to drop 3.06 in 2024. At this time, Chunghwa Telecom's Accumulated Other Comprehensive Income is comparatively stable compared to the past year. Total Other Income Expense Net is likely to gain to about 743.9 M in 2024, whereas Income Tax Expense is likely to drop slightly above 8 B in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.470.3648
Significantly Up
Slightly volatile
Net Profit Margin0.220.1656
Significantly Up
Very volatile
Operating Profit Margin0.280.2077
Significantly Up
Pretty Stable
Pretax Profit Margin0.290.2106
Significantly Up
Pretty Stable
Return On Assets0.10.0706
Significantly Up
Slightly volatile
Return On Equity0.130.0972
Significantly Up
Slightly volatile
For Chunghwa Telecom profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Chunghwa Telecom to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Chunghwa Telecom Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Chunghwa Telecom's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Chunghwa Telecom Co over time as well as its relative position and ranking within its peers.
  
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Is Diversified Telecommunication Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Chunghwa Telecom. If investors know Chunghwa will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Chunghwa Telecom listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.01)
Dividend Share
4.758
Earnings Share
1.45
Revenue Per Share
73.01
Quarterly Revenue Growth
0.036
The market value of Chunghwa Telecom is measured differently than its book value, which is the value of Chunghwa that is recorded on the company's balance sheet. Investors also form their own opinion of Chunghwa Telecom's value that differs from its market value or its book value, called intrinsic value, which is Chunghwa Telecom's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Chunghwa Telecom's market value can be influenced by many factors that don't directly affect Chunghwa Telecom's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Chunghwa Telecom's value and its price as these two are different measures arrived at by different means. Investors typically determine if Chunghwa Telecom is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chunghwa Telecom's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Chunghwa Telecom Operating Margin vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Chunghwa Telecom's current stock value. Our valuation model uses many indicators to compare Chunghwa Telecom value to that of its competitors to determine the firm's financial worth.
Chunghwa Telecom Co is number one stock in price to book category among its peers. It is rated fourth in operating margin category among its peers reporting about  0.08  of Operating Margin per Price To Book. The ratio of Price To Book to Operating Margin for Chunghwa Telecom Co is roughly  12.59 . At this time, Chunghwa Telecom's Operating Profit Margin is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Chunghwa Telecom by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Chunghwa Operating Margin vs. Price To Book

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.

Chunghwa Telecom

P/B

 = 

MV Per Share

BV Per Share

 = 
2.58 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.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Chunghwa Telecom

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.20 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Chunghwa Operating Margin Comparison

Chunghwa Telecom is currently under evaluation in operating margin category among its peers.

Chunghwa Telecom Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Chunghwa Telecom, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Chunghwa Telecom will eventually generate negative long term returns. The profitability progress is the general direction of Chunghwa Telecom's change in net profit over the period of time. It can combine multiple indicators of Chunghwa Telecom, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income353 M370.6 M
Operating Income46.4 B40.2 B
Income Before Tax47 B41.2 B
Total Other Income Expense Net655 M743.9 M
Net Income Applicable To Common Shares41.9 B44 B
Net Income37 B49.5 B
Income Tax Expense8.9 BB
Net Income From Continuing Ops38.1 B38.3 B
Interest Income557.8 M572.4 M
Net Interest Income251.7 M264.3 M
Change To Netincome2.4 B2.5 B
Net Income Per Share 4.76  3.82 
Income Quality 2.02  1.95 
Net Income Per E B T 0.79  0.63 

Chunghwa Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Chunghwa Telecom. 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 Chunghwa Telecom 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 Chunghwa Telecom's important profitability drivers and their relationship over time.

Use Chunghwa Telecom 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 Chunghwa Telecom 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 Chunghwa Telecom will appreciate offsetting losses from the drop in the long position's value.

Chunghwa Telecom Pair Trading

Chunghwa Telecom Co Pair Trading Analysis

The ability to find closely correlated positions to Chunghwa Telecom could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Chunghwa Telecom 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 Chunghwa Telecom - 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 Chunghwa Telecom Co to buy it.
The correlation of Chunghwa Telecom 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 Chunghwa Telecom moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Chunghwa Telecom 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 Chunghwa Telecom 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.
Pair CorrelationCorrelation Matching

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Additional Tools for Chunghwa Stock Analysis

When running Chunghwa Telecom's price analysis, check to measure Chunghwa Telecom's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Chunghwa Telecom is operating at the current time. Most of Chunghwa Telecom's value examination focuses on studying past and present price action to predict the probability of Chunghwa Telecom's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Chunghwa Telecom's price. Additionally, you may evaluate how the addition of Chunghwa Telecom to your portfolios can decrease your overall portfolio volatility.