Fast Retailing Price To Book vs. Return On Equity
| FR7 Stock | EUR 335.50 4.50 1.32% |
For Fast Retailing profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Fast Retailing to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Fast Retailing Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Fast Retailing's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Fast Retailing Co over time as well as its relative position and ranking within its peers.
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Fast Retailing Return On Equity vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Fast Retailing's current stock value. Our valuation model uses many indicators to compare Fast Retailing value to that of its competitors to determine the firm's financial worth. Fast Retailing Co is one of the top stocks in price to book category among its peers. It also is one of the top stocks in return on equity category among its peers reporting about 0.02 of Return On Equity per Price To Book. The ratio of Price To Book to Return On Equity for Fast Retailing Co is roughly 51.83 . 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 Fast Retailing's earnings, one of the primary drivers of an investment's value.Fast 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.
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| = | 9.96 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.
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| = | 0.19 |
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.
Fast Return On Equity Comparison
Fast Retailing is currently under evaluation in return on equity category among its peers.
Fast Retailing Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Fast Retailing, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Fast Retailing will eventually generate negative long term returns. The profitability progress is the general direction of Fast Retailing's change in net profit over the period of time. It can combine multiple indicators of Fast Retailing, 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.
Fast Retailing Co., Ltd., through its subsidiaries, operates as an apparel retailer in Japan and internationally. Fast Retailing Co., Ltd. was founded in 1949 and is headquartered in Yamaguchi, Japan. FAST RETAILING is traded on Frankfurt Stock Exchange in Germany.
Fast Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Fast Retailing. 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 Fast Retailing 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 Fast Retailing's important profitability drivers and their relationship over time.
Use Fast Retailing 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 Fast Retailing 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 Fast Retailing will appreciate offsetting losses from the drop in the long position's value.Fast Retailing Pair Trading
Fast Retailing Co Pair Trading Analysis
The ability to find closely correlated positions to Fast Retailing could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Fast Retailing 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 Fast Retailing - 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 Fast Retailing Co to buy it.
The correlation of Fast Retailing 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 Fast Retailing moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Fast Retailing 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 Fast Retailing 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 Fast Retailing position
In addition to having Fast Retailing 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 ESG Investing Thematic Idea Now
ESG Investing
Sustainable investments that promote the conservation of the natural world, social resposibility, freindly employees policies and strong governance. The ESG Investing theme has 51 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 ESG Investing Theme or any other thematic opportunities.
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Other Information on Investing in Fast Stock
To fully project Fast Retailing's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Fast Retailing 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 Fast Retailing's income statement, its balance sheet, and the statement of cash flows.