Boot Barn Current Valuation vs. Return On Equity
| OBB Stock | EUR 154.00 1.00 0.65% |
For Boot Barn profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Boot Barn to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Boot Barn Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Boot Barn's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Boot Barn Holdings over time as well as its relative position and ranking within its peers.
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Boot Barn Holdings Return On Equity vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Boot Barn's current stock value. Our valuation model uses many indicators to compare Boot Barn value to that of its competitors to determine the firm's financial worth. Boot Barn Holdings is regarded third in current valuation category among its peers. It is considered to be number one stock in return on equity category among its peers . The ratio of Current Valuation to Return On Equity for Boot Barn Holdings is about 8,449,043,927 . 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 Boot Barn's earnings, one of the primary drivers of an investment's value.Boot Current Valuation vs. Competition
Boot Barn Holdings is regarded third in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Apparel Stores industry is now estimated at about 36.82 Billion. Boot Barn holds roughly 2.22 Billion in current valuation claiming about 6% of stocks in Apparel Stores industry.
Boot Return On Equity 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.
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| = | 2.22 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.
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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| = | 0.26 |
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.
Boot Return On Equity Comparison
Boot Barn is currently under evaluation in return on equity category among its peers.
Boot Barn Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Boot Barn, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Boot Barn will eventually generate negative long term returns. The profitability progress is the general direction of Boot Barn's change in net profit over the period of time. It can combine multiple indicators of Boot Barn, 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.
Boot Barn Holdings, Inc., a lifestyle retail chain, operates specialty retail stores in the United States. Boot Barn Holdings, Inc. was founded in 1978 and is based in Irvine, California. BOOT BARN operates under Apparel Stores classification in Germany and is traded on Frankfurt Stock Exchange. It employs 1300 people.
Boot Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Boot Barn. 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 Boot Barn 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 Boot Barn's important profitability drivers and their relationship over time.
Use Boot Barn 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 Boot Barn 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 Boot Barn will appreciate offsetting losses from the drop in the long position's value.Boot Barn Pair Trading
Boot Barn Holdings Pair Trading Analysis
The ability to find closely correlated positions to Boot Barn could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Boot Barn 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 Boot Barn - 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 Boot Barn Holdings to buy it.
The correlation of Boot Barn 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 Boot Barn moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Boot Barn Holdings 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 Boot Barn 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 Boot Barn position
In addition to having Boot Barn 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?
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Additional Information and Resources on Investing in Boot Stock
When determining whether Boot Barn Holdings is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Boot Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Boot Barn Holdings Stock. Highlighted below are key reports to facilitate an investment decision about Boot Barn Holdings Stock:Check out Your Equity Center. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
To fully project Boot Barn's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Boot Barn Holdings 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 Boot Barn's income statement, its balance sheet, and the statement of cash flows.