Godrej Consumer Price To Book vs. Book Value Per Share

GODREJCP   1,135  1.45  0.13%   
Considering Godrej Consumer's profitability and operating efficiency indicators, Godrej Consumer Products may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Godrej Consumer's ability to earn profits and add value for shareholders.
For Godrej Consumer profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Godrej Consumer to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Godrej Consumer Products utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Godrej Consumer's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Godrej Consumer Products over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Please note, there is a significant difference between Godrej Consumer's value and its price as these two are different measures arrived at by different means. Investors typically determine if Godrej Consumer is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Godrej Consumer's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Godrej Consumer Products Book Value Per Share vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Godrej Consumer's current stock value. Our valuation model uses many indicators to compare Godrej Consumer value to that of its competitors to determine the firm's financial worth.
Godrej Consumer Products is one of the top stocks in price to book category among its peers. It also is one of the top stocks in book value per share category among its peers creating about  12.54  of Book Value Per Share per Price To Book. Comparative valuation analysis is a catch-all model that can be used if you cannot value Godrej Consumer by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Godrej Consumer's Stock. 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.

Godrej Book Value Per Share 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.

Godrej Consumer

P/B

 = 

MV Per Share

BV Per Share

 = 
9.48 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.
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.

Godrej Consumer

Book Value per Share

 = 

Common Equity

Average Shares

 = 
118.90 X
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.

Godrej Book Value Per Share Comparison

Godrej Consumer is currently under evaluation in book value per share category among its peers.

Godrej Consumer Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Godrej Consumer, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Godrej Consumer will eventually generate negative long term returns. The profitability progress is the general direction of Godrej Consumer's change in net profit over the period of time. It can combine multiple indicators of Godrej Consumer, 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income125 B131.2 B
Operating Income362.2 M344.1 M
Income Before TaxB1.9 B
Total Other Income Expense Net1.6 B1.7 B
Net Loss-5.6 B-5.3 B
Income Tax Expense7.6 BB
Net Loss-5.6 B-5.3 B
Net Income Applicable To Common Shares19.6 B15.9 B
Interest Income1.9 B1.4 B
Net Interest Income-3 B-2.8 B
Change To Netincome-59.2 M-56.3 M

Godrej Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Godrej Consumer. 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 Godrej Consumer 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 Godrej Consumer's important profitability drivers and their relationship over time.

Use Godrej Consumer 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 Godrej Consumer 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 Godrej Consumer will appreciate offsetting losses from the drop in the long position's value.

Godrej Consumer Pair Trading

Godrej Consumer Products Pair Trading Analysis

The ability to find closely correlated positions to Godrej Consumer could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Godrej Consumer 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 Godrej Consumer - 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 Godrej Consumer Products to buy it.
The correlation of Godrej Consumer 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 Godrej Consumer moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Godrej Consumer Products 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 Godrej Consumer 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Godrej Consumer position

In addition to having Godrej Consumer 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.

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Other Information on Investing in Godrej Stock

To fully project Godrej Consumer's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Godrej Consumer Products 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 Godrej Consumer's income statement, its balance sheet, and the statement of cash flows.
Potential Godrej Consumer investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Godrej Consumer investors may work on each financial statement separately, they are all related. The changes in Godrej Consumer's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Godrej Consumer's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.