Tata Motors Price To Earning vs. Return On Equity
| TTMDelisted Stock | USD 25.14 0.00 0.00% |
For Tata Motors profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Tata Motors to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Tata Motors Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Tata Motors's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Tata Motors Limited over time as well as its relative position and ranking within its peers.
Tata |
Tata Motors Limited Return On Equity vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Tata Motors's current stock value. Our valuation model uses many indicators to compare Tata Motors value to that of its competitors to determine the firm's financial worth. Tata Motors Limited is currently regarded as top stock in price to earning category among its peers. It also is currently regarded as top stock in return on equity category among its peers . Comparative valuation analysis is a catch-all technique that is used if you cannot value Tata Motors by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Tata Return On Equity vs. Price To Earning
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.
Tata Motors |
| = | 10.97 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.
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.
Tata Motors |
| = | -0.21 |
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.
Tata Return On Equity Comparison
Tata Motors is currently under evaluation in return on equity category among its peers.
Tata Motors Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Tata Motors, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Tata Motors will eventually generate negative long term returns. The profitability progress is the general direction of Tata Motors' change in net profit over the period of time. It can combine multiple indicators of Tata Motors, 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.
Tata Motors Limited designs, develops, manufactures, and sells various automotive vehicles. Tata Motors Limited was incorporated in 1945 and is headquartered in Mumbai, India. Tata Motors operates under Auto Manufacturers classification in the United States and is traded on New York Stock Exchange. It employs 73608 people.
Tata Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Tata Motors. 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 Tata Motors 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 Tata Motors' important profitability drivers and their relationship over time.
Use Tata Motors 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 Tata Motors 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 Tata Motors will appreciate offsetting losses from the drop in the long position's value.Tata Motors Pair Trading
Tata Motors Limited Pair Trading Analysis
The ability to find closely correlated positions to Tata Motors could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Tata Motors 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 Tata Motors - 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 Tata Motors Limited to buy it.
The correlation of Tata Motors 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 Tata Motors moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Tata Motors Limited 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 Tata Motors 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 Tata Motors position
In addition to having Tata Motors 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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Check out World Market Map to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Consideration for investing in Tata Stock
If you are still planning to invest in Tata Motors Limited check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Tata Motors' history and understand the potential risks before investing.
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