Federated Equity Profitability Analysis
Federated Equity Income Price To Book vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Federated Equity's current stock value. Our valuation model uses many indicators to compare Federated Equity value to that of its competitors to determine the firm's financial worth. Federated Equity Income is one of the top funds in price to earning among similar funds. It also is one of the top funds in price to book among similar funds fabricating about 0.14 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Federated Equity Income is roughly 7.31 . 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 Federated Equity's earnings, one of the primary drivers of an investment's value.Federated Price To Book vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Federated Equity |
| = | 15.13 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
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.
Federated Equity |
| = | 2.07 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.
Federated Equity Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Federated Equity, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Federated Equity will eventually generate negative long term returns. The profitability progress is the general direction of Federated Equity's change in net profit over the period of time. It can combine multiple indicators of Federated Equity, 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.
The fund invests primarily in income-producing and income-growing equity securities which the Adviser believes will appreciate in capital and generate an attractive total return. The funds holdings ordinarily will be in mid-capitalization to large-capitalization domestic companies, although the fund may invest across all market capitalizations. The adviser, primarily selects dividend paying stocks that also have the prospect of raising their dividends over time, appreciating in capital, and generating an attractive total return.
Federated Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Federated Equity. 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 Federated Equity 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 Federated Equity's important profitability drivers and their relationship over time.
Federated Equity Earnings per Share Projection vs Actual
Use Federated Equity 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 Federated Equity 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 Federated Equity will appreciate offsetting losses from the drop in the long position's value.Federated Equity Pair Trading
Federated Equity Income Pair Trading Analysis
The ability to find closely correlated positions to Federated Equity could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Federated Equity 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 Federated Equity - 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 Federated Equity Income to buy it.
The correlation of Federated Equity 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 Federated Equity moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Federated Equity Income 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 Federated Equity 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 Federated Equity position
In addition to having Federated Equity 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 Sovereign ETFs Thematic Idea Now
Sovereign ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Sovereign ETFs theme has 17 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 Sovereign ETFs Theme or any other thematic opportunities.
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Other Information on Investing in Federated Mutual Fund
To fully project Federated Equity's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Federated Equity Income 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 Federated Equity's income statement, its balance sheet, and the statement of cash flows.
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