LyondellBasell Industries Return On Equity vs. Current Valuation
| DLY Stock | EUR 79.10 0.20 0.25% |
For LyondellBasell Industries profitability analysis, we use financial ratios and fundamental drivers that measure the ability of LyondellBasell Industries to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well LyondellBasell Industries NV utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between LyondellBasell Industries's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of LyondellBasell Industries NV over time as well as its relative position and ranking within its peers.
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LyondellBasell Industries Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining LyondellBasell Industries's current stock value. Our valuation model uses many indicators to compare LyondellBasell Industries value to that of its competitors to determine the firm's financial worth. LyondellBasell Industries NV is one of the top stocks in return on equity category among its peers. It also is rated as one of the top companies in current valuation category among its peers reporting about 116,515,266,557 of Current Valuation per Return On Equity. 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 LyondellBasell Industries' earnings, one of the primary drivers of an investment's value.LyondellBasell Current Valuation 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.
LyondellBasell Industries |
| = | 0.31 |
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.
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.
LyondellBasell Industries |
| = | 36.62 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.
LyondellBasell Current Valuation vs Competition
LyondellBasell Industries NV is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Specialty Chemicals industry is currently estimated at about 63.64 Billion. LyondellBasell Industries totals roughly 36.62 Billion in current valuation claiming about 58% of equities listed under Specialty Chemicals industry.
LyondellBasell Industries Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in LyondellBasell Industries, profitability is also one of the essential criteria for including it into their portfolios because, without profit, LyondellBasell Industries will eventually generate negative long term returns. The profitability progress is the general direction of LyondellBasell Industries' change in net profit over the period of time. It can combine multiple indicators of LyondellBasell 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.
LyondellBasell Industries N.V. operates as a chemical company worldwide. LyondellBasell Industries N.V. was founded in 2005 and is headquartered in London, the United Kingdom. LYONDELLBAS IND operates under Specialty Chemicals classification in Germany and is traded on Frankfurt Stock Exchange. It employs 19450 people.
LyondellBasell Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on LyondellBasell 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 LyondellBasell 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 LyondellBasell Industries' important profitability drivers and their relationship over time.
Use LyondellBasell 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 LyondellBasell 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 LyondellBasell Industries will appreciate offsetting losses from the drop in the long position's value.LyondellBasell Industries Pair Trading
LyondellBasell Industries NV Pair Trading Analysis
The ability to find closely correlated positions to LyondellBasell 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 LyondellBasell 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 LyondellBasell 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 LyondellBasell Industries NV to buy it.
The correlation of LyondellBasell 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 LyondellBasell Industries moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if LyondellBasell 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 LyondellBasell 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 LyondellBasell Industries position
In addition to having LyondellBasell 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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Hedge Favorites
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Additional Information and Resources on Investing in LyondellBasell Stock
When determining whether LyondellBasell Industries offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of LyondellBasell Industries' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Lyondellbasell Industries Nv Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lyondellbasell Industries Nv Stock:Check out Investing Opportunities. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
To fully project LyondellBasell Industries' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of LyondellBasell 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 LyondellBasell Industries' income statement, its balance sheet, and the statement of cash flows.