HDFC Asset Current Valuation vs. Book Value Per Share
| HDFCAMC Stock | 4,210 32.15 0.76% |
For HDFC Asset profitability analysis, we use financial ratios and fundamental drivers that measure the ability of HDFC Asset to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well HDFC Asset Management utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between HDFC Asset's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of HDFC Asset Management over time as well as its relative position and ranking within its peers.
HDFC |
HDFC Asset Management Book Value Per Share vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining HDFC Asset's current stock value. Our valuation model uses many indicators to compare HDFC Asset value to that of its competitors to determine the firm's financial worth. HDFC Asset Management is rated as one of the top companies in current valuation category among its peers. It also is one of the top stocks in book value per share category among its peers . The ratio of Current Valuation to Book Value Per Share for HDFC Asset Management is about 2,825,941,131 . Comparative valuation analysis is a catch-all model that can be used if you cannot value HDFC Asset by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for HDFC Asset'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.HDFC Current Valuation vs. Competition
HDFC Asset Management is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is currently estimated at about 1.74 Trillion. HDFC Asset totals roughly 898.71 Billion in current valuation claiming about 52% of equities under Financials industry.
HDFC Book Value Per Share vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
HDFC Asset |
| = | 898.71 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
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.
HDFC Asset |
| = | 318.02 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.
HDFC Book Value Per Share Comparison
HDFC Asset is currently under evaluation in book value per share category among its peers.
HDFC Asset Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in HDFC Asset, profitability is also one of the essential criteria for including it into their portfolios because, without profit, HDFC Asset will eventually generate negative long term returns. The profitability progress is the general direction of HDFC Asset's change in net profit over the period of time. It can combine multiple indicators of HDFC Asset, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 2.1 B | 2.1 B | |
| Operating Income | 24.8 B | 13.6 B | |
| Income Before Tax | 24.8 B | 13.9 B | |
| Total Other Income Expense Net | -90.9 M | -86.4 M | |
| Net Income | 19.4 B | 13.3 B | |
| Income Tax Expense | 5.3 B | 3.7 B | |
| Net Income From Continuing Ops | 19.4 B | 11.5 B | |
| Net Income Applicable To Common Shares | 16.4 B | 10.4 B | |
| Interest Income | 279.1 M | 457.7 M | |
| Net Interest Income | -90.9 M | -86.4 M | |
| Change To Netincome | -1.7 B | -1.8 B |
HDFC Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on HDFC Asset. 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 HDFC Asset 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 HDFC Asset's important profitability drivers and their relationship over time.
Use HDFC Asset 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 HDFC Asset 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 HDFC Asset will appreciate offsetting losses from the drop in the long position's value.HDFC Asset Pair Trading
HDFC Asset Management Pair Trading Analysis
The ability to find closely correlated positions to HDFC Asset could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace HDFC Asset 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 HDFC Asset - 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 HDFC Asset Management to buy it.
The correlation of HDFC Asset 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 HDFC Asset moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if HDFC Asset Management 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 HDFC Asset 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 HDFC Asset position
In addition to having HDFC Asset 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 Communication Services Thematic Idea Now
Communication Services
Companies that provide networking, telecom, and long distance services. The Communication Services theme has 43 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 Communication Services Theme or any other thematic opportunities.
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Other Information on Investing in HDFC Stock
To fully project HDFC Asset's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of HDFC Asset Management 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 HDFC Asset's income statement, its balance sheet, and the statement of cash flows.