Vanguard Consumer Price To Earning vs. Beta
| VCR Etf | USD 372.51 0.00 0.00% |
For Vanguard Consumer profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Vanguard Consumer to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Vanguard Consumer Discretionary utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Vanguard Consumer's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Vanguard Consumer Discretionary over time as well as its relative position and ranking within its peers.
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The market value of Vanguard Consumer is measured differently than its book value, which is the value of Vanguard that is recorded on the company's balance sheet. Investors also form their own opinion of Vanguard Consumer's value that differs from its market value or its book value, called intrinsic value, which is Vanguard Consumer's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Vanguard Consumer's market value can be influenced by many factors that don't directly affect Vanguard Consumer's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Vanguard Consumer's value and its price as these two are different measures arrived at by different means. Investors typically determine if Vanguard Consumer is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vanguard Consumer's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Vanguard Consumer Beta vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Vanguard Consumer's current stock value. Our valuation model uses many indicators to compare Vanguard Consumer value to that of its competitors to determine the firm's financial worth. Vanguard Consumer Discretionary is rated first in price to earning as compared to similar ETFs. It is rated first in beta as compared to similar ETFs totaling about 0.07 of Beta per Price To Earning. The ratio of Price To Earning to Beta for Vanguard Consumer Discretionary is roughly 15.30 . Comparative valuation analysis is a catch-all technique that is used if you cannot value Vanguard Consumer 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.Vanguard Beta 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.
Vanguard Consumer |
| = | 19.74 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.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Vanguard Consumer |
| = | 1.29 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Vanguard Beta Comparison
Vanguard Consumer is currently under evaluation in beta as compared to similar ETFs.
Beta Analysis
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Vanguard Consumer will likely underperform.
Vanguard Consumer Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Vanguard Consumer, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Vanguard Consumer will eventually generate negative long term returns. The profitability progress is the general direction of Vanguard Consumer's change in net profit over the period of time. It can combine multiple indicators of Vanguard Consumer, 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.
The fund employs an indexing investment approach designed to track the performance of the MSCI US Investable Market IndexConsumer Discretionary 2550, an index made up of stocks of large, mid-size, and small U.S. companies within the consumer discretionary sector, as classified under the Global Industry Classification Standard. Consumer Disc is traded on NYSEARCA Exchange in the United States.
Vanguard Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Vanguard Consumer. 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 Vanguard Consumer 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 Vanguard Consumer's important profitability drivers and their relationship over time.
Use Vanguard Consumer 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 Vanguard Consumer 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 Vanguard Consumer will appreciate offsetting losses from the drop in the long position's value.Vanguard Consumer Pair Trading
Vanguard Consumer Discretionary Pair Trading Analysis
The ability to find closely correlated positions to Vanguard Consumer could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Vanguard Consumer 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 Vanguard Consumer - 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 Vanguard Consumer Discretionary to buy it.
The correlation of Vanguard Consumer 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 Vanguard Consumer moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Vanguard Consumer 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 Vanguard Consumer 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 Vanguard Consumer position
In addition to having Vanguard Consumer 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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To fully project Vanguard Consumer's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Vanguard Consumer 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 Vanguard Consumer's income statement, its balance sheet, and the statement of cash flows.