Telefonica Brasil Current Valuation vs. Return On Asset

VIV Stock  USD 8.90  0.05  0.56%   
Taking into consideration Telefonica Brasil's profitability measurements, Telefonica Brasil SA is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in December. Profitability indicators assess Telefonica Brasil's ability to earn profits and add value for shareholders. At this time, Telefonica Brasil's Price To Sales Ratio is fairly stable compared to the past year. EV To Sales is likely to climb to 2.04 in 2024, whereas Days Sales Outstanding is likely to drop 70.12 in 2024. At this time, Telefonica Brasil's Income Tax Expense is fairly stable compared to the past year. Net Income Applicable To Common Shares is likely to climb to about 5.7 B in 2024, whereas Operating Income is likely to drop slightly above 5.1 B in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.460.4354
Notably Up
Slightly volatile
Net Profit Margin0.140.0965
Way Up
Very volatile
Operating Profit Margin0.210.152
Significantly Up
Very volatile
Pretax Profit Margin0.180.107
Way Up
Pretty Stable
Return On Assets0.07540.0417
Way Up
Very volatile
Return On Equity0.06870.0723
Notably Down
Pretty Stable
For Telefonica Brasil profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Telefonica Brasil to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Telefonica Brasil SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Telefonica Brasil's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Telefonica Brasil SA over time as well as its relative position and ranking within its peers.
  
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Is Diversified Telecommunication Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Telefonica Brasil. If investors know Telefonica will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Telefonica Brasil listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.145
Dividend Share
2.202
Earnings Share
0.56
Revenue Per Share
33.224
Quarterly Revenue Growth
0.071
The market value of Telefonica Brasil is measured differently than its book value, which is the value of Telefonica that is recorded on the company's balance sheet. Investors also form their own opinion of Telefonica Brasil's value that differs from its market value or its book value, called intrinsic value, which is Telefonica Brasil'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 Telefonica Brasil's market value can be influenced by many factors that don't directly affect Telefonica Brasil'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 Telefonica Brasil's value and its price as these two are different measures arrived at by different means. Investors typically determine if Telefonica Brasil is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Telefonica Brasil'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.

Telefonica Brasil Return On Asset vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Telefonica Brasil's current stock value. Our valuation model uses many indicators to compare Telefonica Brasil value to that of its competitors to determine the firm's financial worth.
Telefonica Brasil SA is rated fifth in current valuation category among its peers. It is rated third in return on asset category among its peers . The ratio of Current Valuation to Return On Asset for Telefonica Brasil SA is about  361,452,362,532 . Return On Assets is likely to climb to 0.08 in 2024. Comparative valuation analysis is a catch-all technique that is used if you cannot value Telefonica Brasil 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.

Telefonica Current Valuation vs. Competition

Telefonica Brasil SA is rated fifth in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Communication Services industry is at this time estimated at about 289.75 Billion. Telefonica Brasil holds roughly 16.7 Billion in current valuation claiming about 6% of stocks in Communication Services industry.

Telefonica Return On Asset vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Telefonica Brasil

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
16.7 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Telefonica Brasil

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0462
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Telefonica Return On Asset Comparison

Telefonica Brasil is currently under evaluation in return on asset category among its peers.

Telefonica Brasil Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Telefonica Brasil, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Telefonica Brasil will eventually generate negative long term returns. The profitability progress is the general direction of Telefonica Brasil's change in net profit over the period of time. It can combine multiple indicators of Telefonica Brasil, 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income110 M104.5 M
Operating Income7.9 B5.1 B
Income Before Tax5.6 B4.5 B
Total Other Income Expense Net-2.3 B-2.2 B
Net Income5.6 B4.3 B
Income Tax Expense533.9 M868.2 M
Interest Income701.6 M626.1 M
Net Income Applicable To Common Shares4.7 B5.7 B
Net Interest Income-1.9 B-1.8 B
Net Income From Continuing OpsB4.3 B
Change To Netincome2.3 B3.3 B
Net Income Per Share 3.03  2.71 
Income Quality 3.37  3.16 
Net Income Per E B T 0.90  1.00 

Telefonica Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Telefonica Brasil. 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 Telefonica Brasil 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 Telefonica Brasil's important profitability drivers and their relationship over time.

Use Telefonica Brasil 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 Telefonica Brasil 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 Telefonica Brasil will appreciate offsetting losses from the drop in the long position's value.

Telefonica Brasil Pair Trading

Telefonica Brasil SA Pair Trading Analysis

The ability to find closely correlated positions to Telefonica Brasil could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Telefonica Brasil 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 Telefonica Brasil - 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 Telefonica Brasil SA to buy it.
The correlation of Telefonica Brasil 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 Telefonica Brasil moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Telefonica Brasil 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 Telefonica Brasil 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Telefonica Brasil position

In addition to having Telefonica Brasil 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.

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Run Financials Thematic Idea Now

Financials
Financials Theme
Companies that provide financial services to business or retail customers. The Financials theme has 20 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 Financials Theme or any other thematic opportunities.
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Additional Tools for Telefonica Stock Analysis

When running Telefonica Brasil's price analysis, check to measure Telefonica Brasil's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Telefonica Brasil is operating at the current time. Most of Telefonica Brasil's value examination focuses on studying past and present price action to predict the probability of Telefonica Brasil's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Telefonica Brasil's price. Additionally, you may evaluate how the addition of Telefonica Brasil to your portfolios can decrease your overall portfolio volatility.