American Fds Price To Book vs. Price To Sales
| SCWCX Fund | USD 57.88 0.42 0.73% |
For American Fds profitability analysis, we use financial ratios and fundamental drivers that measure the ability of American Fds to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well American Fds Smallcap utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between American Fds's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of American Fds Smallcap over time as well as its relative position and ranking within its peers.
American |
American Fds Smallcap Price To Sales vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining American Fds's current stock value. Our valuation model uses many indicators to compare American Fds value to that of its competitors to determine the firm's financial worth. American Fds Smallcap is rated top fund in price to book among similar funds. It also is rated top fund in price to sales among similar funds fabricating about 0.65 of Price To Sales per Price To Book. The ratio of Price To Book to Price To Sales for American Fds Smallcap is roughly 1.53 . 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 American Fds' earnings, one of the primary drivers of an investment's value.American Price To Sales 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.
American Fds |
| = | 2.39 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.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
American Fds |
| = | 1.56 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
American Price To Sales Comparison
American Fds is currently under evaluation in price to sales among similar funds.
American Fds Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in American Fds, profitability is also one of the essential criteria for including it into their portfolios because, without profit, American Fds will eventually generate negative long term returns. The profitability progress is the general direction of American Fds' change in net profit over the period of time. It can combine multiple indicators of American Fds, 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.
Normally the fund invests at least 80 percent of its net assets in common stocks and other equity-type securities of companies with small market capitalizations, including growth-oriented stocks. Under normal circumstances, the fund will invest a significant portion of its assets outside the United States, including in emerging markets.
American Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on American Fds. 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 American Fds 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 American Fds' important profitability drivers and their relationship over time.
Use American Fds 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 American Fds 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 American Fds will appreciate offsetting losses from the drop in the long position's value.American Fds Pair Trading
American Fds Smallcap Pair Trading Analysis
The ability to find closely correlated positions to American Fds could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Fds 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 American Fds - 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 American Fds Smallcap to buy it.
The correlation of American Fds 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 American Fds moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Fds Smallcap 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 American Fds 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 American Fds position
In addition to having American Fds 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 Fabricated Products Thematic Idea Now
Fabricated Products
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Fabricated Products theme has 11 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 Fabricated Products Theme or any other thematic opportunities.
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Other Information on Investing in American Mutual Fund
To fully project American Fds' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of American Fds Smallcap 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 American Fds' income statement, its balance sheet, and the statement of cash flows.
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