Bank Mega Return On Equity vs. Current Valuation
| MEGA Stock | IDR 4,860 10.00 0.21% |
For Bank Mega profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Bank Mega to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Bank Mega Tbk utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Bank Mega's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Bank Mega Tbk over time as well as its relative position and ranking within its peers.
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Bank Mega Tbk Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Bank Mega's current stock value. Our valuation model uses many indicators to compare Bank Mega value to that of its competitors to determine the firm's financial worth. Bank Mega Tbk is considered to be number one stock in return on equity category among its peers. It also is rated top company in current valuation category among its peers reporting about Huge of Current Valuation per Return On Equity. 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 Bank Mega's earnings, one of the primary drivers of an investment's value.Bank Current Valuation vs. Return On Equity
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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| = | 0.2 |
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.
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.
Bank Mega |
| = | 60.33 T |
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.
Bank Current Valuation vs Competition
Bank Mega Tbk is rated top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is now estimated at about 70.64 Trillion. Bank Mega totals roughly 60.33 Trillion in current valuation claiming about 85% of equities under Financials industry.
Bank Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Bank Mega. 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 Bank Mega 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 Bank Mega's important profitability drivers and their relationship over time.
Use Bank Mega 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 Bank Mega 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 Bank Mega will appreciate offsetting losses from the drop in the long position's value.Bank Mega Pair Trading
Bank Mega Tbk Pair Trading Analysis
The ability to find closely correlated positions to Bank Mega could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Bank Mega 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 Bank Mega - 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 Bank Mega Tbk to buy it.
The correlation of Bank Mega 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 Bank Mega moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bank Mega Tbk 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 Bank Mega 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 Bank Mega position
In addition to having Bank Mega 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 Candy and Soda Thematic Idea Now
Candy and Soda
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Candy and Soda theme has 13 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 Candy and Soda Theme or any other thematic opportunities.
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Other Information on Investing in Bank Stock
To fully project Bank Mega's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Bank Mega Tbk 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 Bank Mega's income statement, its balance sheet, and the statement of cash flows.