British American Tobacco Stock Return On Equity

4162 Stock   7.49  0.03  0.40%   
British American Tobacco fundamentals help investors to digest information that contributes to British American's financial success or failures. It also enables traders to predict the movement of British Stock. The fundamental analysis module provides a way to measure British American's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to British American stock.
  
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British American Tobacco Company Return On Equity Analysis

British American's 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.

Return On Equity

 = 

Net Income

Total Equity

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Current British American Return On Equity

    
  69.56  
Most of British American's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, British American Tobacco is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
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.
Competition

Based on the latest financial disclosure, British American Tobacco has a Return On Equity of 69. This is much higher than that of the Consumer Non-Cyclicals sector and significantly higher than that of the Food & Tobacco industry. The return on equity for all Malaysia stocks is notably lower than that of the firm.

British Return On Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses British American's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of British American could also be used in its relative valuation, which is a method of valuing British American by comparing valuation metrics of similar companies.
British American is rated second in return on equity category among its peers.

British Fundamentals

About British American Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze British American Tobacco's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of British American using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of British American Tobacco based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Also Currently Popular

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.

Additional Information and Resources on Investing in British Stock

When determining whether British American Tobacco offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of British American's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of British American Tobacco Stock. Outlined below are crucial reports that will aid in making a well-informed decision on British American Tobacco Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in British American Tobacco. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Please note, there is a significant difference between British American's value and its price as these two are different measures arrived at by different means. Investors typically determine if British American is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, British American'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.