Treasury Wine Return On Equity vs. Price To Earning
| T7W Stock | EUR 6.92 0.08 1.14% |
For Treasury Wine profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Treasury Wine to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Treasury Wine Estates utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Treasury Wine's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Treasury Wine Estates over time as well as its relative position and ranking within its peers.
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Treasury Wine Estates Price To Earning vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Treasury Wine's current stock value. Our valuation model uses many indicators to compare Treasury Wine value to that of its competitors to determine the firm's financial worth. Treasury Wine Estates is rated fifth in return on equity category among its peers. It is rated fourth in price to earning category among its peers reporting about 391.44 of Price To Earning 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 Treasury Wine's earnings, one of the primary drivers of an investment's value.Treasury Price To Earning 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.
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| = | 0.0713 |
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.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
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| = | 27.91 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Treasury Price To Earning Comparison
Treasury Wine is currently under evaluation in price to earning category among its peers.
Treasury Wine Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Treasury Wine, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Treasury Wine will eventually generate negative long term returns. The profitability progress is the general direction of Treasury Wine's change in net profit over the period of time. It can combine multiple indicators of Treasury Wine, 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.
Treasury Wine Estates Limited operates as a wine company in Australia, New Zealand, Asia, Europe, and the Americas. The company was founded in 1843 and is headquartered in Melbourne, Australia. TREASURY WINE operates under Beverages - Wineries Distilleries classification in Germany and is traded on Frankfurt Stock Exchange. It employs 3500 people.
Treasury Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Treasury Wine. 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 Treasury Wine 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 Treasury Wine's important profitability drivers and their relationship over time.
Use Treasury Wine 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 Treasury Wine 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 Treasury Wine will appreciate offsetting losses from the drop in the long position's value.Treasury Wine Pair Trading
Treasury Wine Estates Pair Trading Analysis
The ability to find closely correlated positions to Treasury Wine could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Treasury Wine 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 Treasury Wine - 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 Treasury Wine Estates to buy it.
The correlation of Treasury Wine 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 Treasury Wine moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Treasury Wine Estates 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 Treasury Wine 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 Treasury Wine position
In addition to having Treasury Wine 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 Compulsion Thematic Idea Now
Compulsion
Companies involved in research, development, and manufacturing of products with compulsion characteristics such as cigarettes, addictive drugs and alcohol. The Compulsion theme has 40 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 Compulsion Theme or any other thematic opportunities.
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Other Information on Investing in Treasury Stock
To fully project Treasury Wine's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Treasury Wine Estates 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 Treasury Wine's income statement, its balance sheet, and the statement of cash flows.