Daimler Truck Price To Book vs. Return On Equity
| DTRUY Stock | USD 18.96 0.57 3.10% |
For Daimler Truck profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Daimler Truck to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Daimler Truck Holding utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Daimler Truck's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Daimler Truck Holding over time as well as its relative position and ranking within its peers.
Daimler |
Daimler Truck Holding Return On Equity vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Daimler Truck's current stock value. Our valuation model uses many indicators to compare Daimler Truck value to that of its competitors to determine the firm's financial worth. Daimler Truck Holding is rated # 5 in price to book category among its peers. It is one of the top stocks in return on equity category among its peers reporting about 0.12 of Return On Equity per Price To Book. The ratio of Price To Book to Return On Equity for Daimler Truck Holding is roughly 8.51 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Daimler Truck by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Daimler Truck's Pink Sheet. 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.Daimler Return On Equity 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.
Daimler Truck |
| = | 1.25 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.
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.
Daimler Truck |
| = | 0.15 |
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.
Daimler Return On Equity Comparison
Daimler Truck is currently under evaluation in return on equity category among its peers.
Daimler Truck Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Daimler Truck, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Daimler Truck will eventually generate negative long term returns. The profitability progress is the general direction of Daimler Truck's change in net profit over the period of time. It can combine multiple indicators of Daimler Truck, 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.
Daimler Truck Holding AG manufactures and sells medium- and heavy-duty trucks and buses in Europe, North America, Asia, Latin America, and internationally. The company was founded in 1896 and is headquartered in Leinfelden-Echterdingen, Germany. Daimler Truck is traded on OTC Exchange in the United States.
Daimler Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Daimler Truck. 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 Daimler Truck 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 Daimler Truck's important profitability drivers and their relationship over time.
Use Daimler Truck 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 Daimler Truck 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 Daimler Truck will appreciate offsetting losses from the drop in the long position's value.Daimler Truck Pair Trading
Daimler Truck Holding Pair Trading Analysis
The ability to find closely correlated positions to Daimler Truck could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Daimler Truck 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 Daimler Truck - 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 Daimler Truck Holding to buy it.
The correlation of Daimler Truck 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 Daimler Truck moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Daimler Truck Holding 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 Daimler Truck 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 Daimler Truck position
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Additional Tools for Daimler Pink Sheet Analysis
When running Daimler Truck's price analysis, check to measure Daimler Truck'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 Daimler Truck is operating at the current time. Most of Daimler Truck's value examination focuses on studying past and present price action to predict the probability of Daimler Truck's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Daimler Truck's price. Additionally, you may evaluate how the addition of Daimler Truck to your portfolios can decrease your overall portfolio volatility.