Porto Seguro Price To Book vs. Return On Equity
| PSSA3 Stock | BRL 38.93 0.33 0.85% |
For Porto Seguro profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Porto Seguro to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Porto Seguro SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Porto Seguro's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Porto Seguro SA over time as well as its relative position and ranking within its peers.
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Porto Seguro SA Return On Equity vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Porto Seguro's current stock value. Our valuation model uses many indicators to compare Porto Seguro value to that of its competitors to determine the firm's financial worth. Porto Seguro SA is considered to be number one stock in price to book category among its peers. It also is considered to be number one stock in return on equity category among its peers reporting about 0.09 of Return On Equity per Price To Book. The ratio of Price To Book to Return On Equity for Porto Seguro SA is roughly 11.61 . 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 Porto Seguro's earnings, one of the primary drivers of an investment's value.Porto Return On Equity 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.
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| = | 1.34 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.
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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| = | 0.12 |
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.
Porto Return On Equity Comparison
Porto Seguro is currently under evaluation in return on equity category among its peers.
Porto Seguro Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Porto Seguro, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Porto Seguro will eventually generate negative long term returns. The profitability progress is the general direction of Porto Seguro's change in net profit over the period of time. It can combine multiple indicators of Porto Seguro, 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.
Porto Seguro S.A., together with its subsidiaries, provides a range of insurance products and services for individuals and legal entities in Brazil and Uruguay. Porto Seguro S.A. is a subsidiary of Porto Seguro Itau-unibanco Participaes S.A. PORTO SEGUROON operates under InsuranceDiversified classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 13000 people.
Porto Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Porto Seguro. 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 Porto Seguro 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 Porto Seguro's important profitability drivers and their relationship over time.
Use Porto Seguro 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 Porto Seguro 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 Porto Seguro will appreciate offsetting losses from the drop in the long position's value.Porto Seguro Pair Trading
Porto Seguro SA Pair Trading Analysis
The ability to find closely correlated positions to Porto Seguro could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Porto Seguro 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 Porto Seguro - 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 Porto Seguro SA to buy it.
The correlation of Porto Seguro 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 Porto Seguro moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Porto Seguro SA 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 Porto Seguro 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 Porto Seguro position
In addition to having Porto Seguro 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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Chemicals Makers
Companies developing chemicals for crops, soil as well as human, and animals. The Chemicals Makers theme has 47 constituents at this time.
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Additional Tools for Porto Stock Analysis
When running Porto Seguro's price analysis, check to measure Porto Seguro's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Porto Seguro is operating at the current time. Most of Porto Seguro's value examination focuses on studying past and present price action to predict the probability of Porto Seguro's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Porto Seguro's price. Additionally, you may evaluate how the addition of Porto Seguro to your portfolios can decrease your overall portfolio volatility.