SBI Life Net Income vs. Current Valuation
| SBILIFE Stock | 1,507 11.55 0.77% |
Net Income | First Reported 2013-03-31 | Previous Quarter 5.2 B | Current Value 5.3 B | Quarterly Volatility 6.3 B |
For SBI Life profitability analysis, we use financial ratios and fundamental drivers that measure the ability of SBI Life to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well SBI Life Insurance utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between SBI Life's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of SBI Life Insurance over time as well as its relative position and ranking within its peers.
SBI |
SBI Life Insurance Current Valuation vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining SBI Life's current stock value. Our valuation model uses many indicators to compare SBI Life value to that of its competitors to determine the firm's financial worth. SBI Life Insurance is currently regarded as top stock in net income category among its peers. It also is currently regarded number one company in current valuation category among its peers reporting about 76.98 of Current Valuation per Net Income. At present, SBI Life's Net Income is projected to increase significantly based on the last few years of reporting. 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 SBI Life's earnings, one of the primary drivers of an investment's value.SBI Current Valuation vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
SBI Life |
| = | 18.94 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.
SBI Life |
| = | 1.46 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.
SBI Current Valuation vs Competition
SBI Life Insurance is currently regarded number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is at this time estimated at about 2.07 Trillion. SBI Life totals roughly 1.46 Trillion in current valuation claiming about 70% of equities under Financials industry.
SBI Life Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in SBI Life, profitability is also one of the essential criteria for including it into their portfolios because, without profit, SBI Life will eventually generate negative long term returns. The profitability progress is the general direction of SBI Life's change in net profit over the period of time. It can combine multiple indicators of SBI Life, 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 | 3.2 B | 3.3 B | |
| Operating Income | 20.1 B | 13.7 B | |
| Income Before Tax | 20.8 B | 13.7 B | |
| Total Other Income Expense Net | 666.5 M | 699.9 M | |
| Net Income | 18.9 B | 13.2 B | |
| Income Tax Expense | 1.8 B | 1.9 B | |
| Net Income From Continuing Ops | 18.9 B | 14.6 B | |
| Net Income Applicable To Common Shares | 19.8 B | 13.1 B | |
| Interest Income | 448.6 M | 595.6 M | |
| Net Interest Income | -223.5 M | -212.4 M | |
| Change To Netincome | 233.1 B | 116.6 B |
SBI Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on SBI Life. 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 SBI Life 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 SBI Life's important profitability drivers and their relationship over time.
Use SBI Life 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 SBI Life 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 SBI Life will appreciate offsetting losses from the drop in the long position's value.SBI Life Pair Trading
SBI Life Insurance Pair Trading Analysis
The ability to find closely correlated positions to SBI Life could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace SBI Life 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 SBI Life - 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 SBI Life Insurance to buy it.
The correlation of SBI Life 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 SBI Life moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if SBI Life Insurance 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 SBI Life 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 SBI Life position
In addition to having SBI Life 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 Precious Metals Thematic Idea Now
Precious Metals
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Precious Metals theme has 61 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 Precious Metals Theme or any other thematic opportunities.
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Other Information on Investing in SBI Stock
To fully project SBI Life's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of SBI Life Insurance 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 SBI Life's income statement, its balance sheet, and the statement of cash flows.