DaVita Price To Book vs. Return On Equity
| TRL Stock | EUR 156.80 0.45 0.29% |
For DaVita profitability analysis, we use financial ratios and fundamental drivers that measure the ability of DaVita to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well DaVita Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between DaVita's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of DaVita Inc over time as well as its relative position and ranking within its peers.
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DaVita Inc Return On Equity vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining DaVita's current stock value. Our valuation model uses many indicators to compare DaVita value to that of its competitors to determine the firm's financial worth. DaVita Inc is currently regarded as top stock in price to book category among its peers. It also is currently regarded as top stock in return on equity category among its peers reporting about 0.03 of Return On Equity per Price To Book. The ratio of Price To Book to Return On Equity for DaVita Inc is roughly 37.67 . 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 DaVita's earnings, one of the primary drivers of an investment's value.DaVita 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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| = | 12.59 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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| = | 0.33 |
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.
DaVita Return On Equity Comparison
DaVita is currently under evaluation in return on equity category among its peers.
DaVita Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in DaVita, profitability is also one of the essential criteria for including it into their portfolios because, without profit, DaVita will eventually generate negative long term returns. The profitability progress is the general direction of DaVita's change in net profit over the period of time. It can combine multiple indicators of DaVita, 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.
DaVita Inc. provides kidney dialysis services for patients suffering from chronic kidney failure or end stage renal disease . DaVita Inc. was founded in 1994 and is headquartered in Denver, Colorado. DAVITA INC operates under Medical Care classification in Germany and is traded on Frankfurt Stock Exchange. It employs 77700 people.
DaVita Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on DaVita. 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 DaVita 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 DaVita's important profitability drivers and their relationship over time.
Use DaVita 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 DaVita 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 DaVita will appreciate offsetting losses from the drop in the long position's value.DaVita Pair Trading
DaVita Inc Pair Trading Analysis
The ability to find closely correlated positions to DaVita could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace DaVita 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 DaVita - 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 DaVita Inc to buy it.
The correlation of DaVita 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 DaVita moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if DaVita Inc 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 DaVita 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 DaVita position
In addition to having DaVita 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 Processed Foods Thematic Idea Now
Processed Foods
Companies producing and distributing processed foods to retail sectors. The Processed Foods theme has 42 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 Processed Foods Theme or any other thematic opportunities.
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Other Information on Investing in DaVita Stock
To fully project DaVita's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of DaVita Inc 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 DaVita's income statement, its balance sheet, and the statement of cash flows.