SIEMENS AG Return On Equity vs. Book Value Per Share
| SIEB Stock | EUR 86.50 1.00 1.14% |
For SIEMENS AG profitability analysis, we use financial ratios and fundamental drivers that measure the ability of SIEMENS AG to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well SIEMENS AG SP utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between SIEMENS AG's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of SIEMENS AG SP over time as well as its relative position and ranking within its peers.
SIEMENS |
SIEMENS AG SP Book Value Per Share vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining SIEMENS AG's current stock value. Our valuation model uses many indicators to compare SIEMENS AG value to that of its competitors to determine the firm's financial worth. SIEMENS AG SP is currently regarded as top stock in return on equity category among its peers. It also is currently regarded as top stock in book value per share category among its peers creating about 362.91 of Book Value Per Share 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 SIEMENS AG's earnings, one of the primary drivers of an investment's value.SIEMENS Book Value Per Share 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.
SIEMENS AG |
| = | 0.085 |
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.
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.
SIEMENS AG |
| = | 30.85 X |
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
SIEMENS Book Value Per Share Comparison
SIEMENS AG is currently under evaluation in book value per share category among its peers.
SIEMENS AG Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in SIEMENS AG, profitability is also one of the essential criteria for including it into their portfolios because, without profit, SIEMENS AG will eventually generate negative long term returns. The profitability progress is the general direction of SIEMENS AG's change in net profit over the period of time. It can combine multiple indicators of SIEMENS AG, 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.
Siemens Aktiengesellschaft, a technology company, focuses in the areas of automation and digitalization in Europe, Commonwealth of Independent States, Africa, the Middle East, the Americas, Asia, and Australia. The company was founded in 1847 and is headquartered in Munich, Germany. SIEMENS AG operates under Specialty Industrial Machinery classification in Germany and is traded on Frankfurt Stock Exchange. It employs 299000 people.
SIEMENS Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on SIEMENS AG. 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 SIEMENS AG 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 SIEMENS AG's important profitability drivers and their relationship over time.
Use SIEMENS AG 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 SIEMENS AG 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 SIEMENS AG will appreciate offsetting losses from the drop in the long position's value.SIEMENS AG Pair Trading
SIEMENS AG SP Pair Trading Analysis
The ability to find closely correlated positions to SIEMENS AG could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace SIEMENS AG 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 SIEMENS AG - 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 SIEMENS AG SP to buy it.
The correlation of SIEMENS AG 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 SIEMENS AG moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if SIEMENS AG SP 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 SIEMENS AG 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 SIEMENS AG position
In addition to having SIEMENS AG 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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Other Information on Investing in SIEMENS Stock
To fully project SIEMENS AG's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of SIEMENS AG SP 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 SIEMENS AG's income statement, its balance sheet, and the statement of cash flows.