Franklin Microcap Cash Position Weight vs. Price To Earning
| FRMCX Fund | USD 32.42 0.32 1.00% |
For Franklin Microcap profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Franklin Microcap to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Franklin Microcap Value utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Franklin Microcap's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Franklin Microcap Value over time as well as its relative position and ranking within its peers.
Franklin |
Franklin Microcap Value Price To Earning vs. Cash Position Weight Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Franklin Microcap's current stock value. Our valuation model uses many indicators to compare Franklin Microcap value to that of its competitors to determine the firm's financial worth. Franklin Microcap Value is one of the top funds in cash position weight among similar funds. It also is one of the top funds in price to earning among similar funds reporting about 1.55 of Price To Earning per Cash Position Weight. 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 Franklin Microcap's earnings, one of the primary drivers of an investment's value.Franklin Price To Earning vs. Cash Position Weight
Percentage of fund asset invested in cash equivalents or risk-free instruments. About 40% of all global funds carry cash on their balance sheet.
Franklin Microcap |
| = | 7.73 % |
Funds or ETFs that have over 40% of their value invested in low-risk instruments or cash equivalents typically attract conservative investors.
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.
Franklin Microcap |
| = | 12.02 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.
Franklin Price To Earning Comparison
Franklin Microcap is currently under evaluation in price to earning among similar funds.
Franklin Microcap Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Franklin Microcap, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Franklin Microcap will eventually generate negative long term returns. The profitability progress is the general direction of Franklin Microcap's change in net profit over the period of time. It can combine multiple indicators of Franklin Microcap, 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 at least 80 percent of its net assets in investments of small-capitalization and mid-capitalization companies. The fund managers consider small- and mid-cap companies as companies with a market capitalization not exceeding the higher of 1 the highest market capitalization in the Russell 2500 Index. The fund generally invests in equity securities of companies that the funds investment manager believes are undervalued at the time of purchase and have the potential for capital appreciation.
Franklin Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Franklin Microcap. 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 Franklin Microcap 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 Franklin Microcap's important profitability drivers and their relationship over time.
Use Franklin Microcap 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 Franklin Microcap 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 Franklin Microcap will appreciate offsetting losses from the drop in the long position's value.Franklin Microcap Pair Trading
Franklin Microcap Value Pair Trading Analysis
The ability to find closely correlated positions to Franklin Microcap could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Franklin Microcap 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 Franklin Microcap - 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 Franklin Microcap Value to buy it.
The correlation of Franklin Microcap 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 Franklin Microcap moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Franklin Microcap Value 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 Franklin Microcap 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 Franklin Microcap position
In addition to having Franklin Microcap 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 Processed Foods Thematic Idea Now
Processed Foods
Companies producing and distributing processed foods to retail sectors. The Processed Foods theme has 45 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 Processed Foods Theme or any other thematic opportunities.
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Other Information on Investing in Franklin Mutual Fund
To fully project Franklin Microcap's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Franklin Microcap Value 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 Franklin Microcap's income statement, its balance sheet, and the statement of cash flows.
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