HDFC Asset Current Valuation vs. Cash And Equivalents
| 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 Cash And Equivalents 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 cash and equivalents category among its peers . The ratio of Current Valuation to Cash And Equivalents for HDFC Asset Management is about 20,150 . At present, HDFC Asset's Cash And Equivalents is projected to decrease significantly based on the last few years of reporting. 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 Cash And Equivalents 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.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
HDFC Asset |
| = | 44.6 M |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
HDFC Cash And Equivalents Comparison
HDFC Asset is currently under evaluation in cash and equivalents 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 Aircraft Thematic Idea Now
Aircraft
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Aircraft 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 Aircraft 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.