Sime Darby Return On Equity vs. EBITDA
| 4197 Stock | 2.30 0.01 0.43% |
For Sime Darby profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sime Darby to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sime Darby Bhd utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sime Darby's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sime Darby Bhd over time as well as its relative position and ranking within its peers.
Sime |
Sime Darby Bhd EBITDA vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Sime Darby's current stock value. Our valuation model uses many indicators to compare Sime Darby value to that of its competitors to determine the firm's financial worth. Sime Darby Bhd is rated below average in return on equity category among its peers. It also is rated below average in ebitda category among its peers totaling about 380,337,184 of EBITDA per Return On Equity. 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 Sime Darby's earnings, one of the primary drivers of an investment's value.Sime EBITDA vs. Return On Equity
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.
Sime Darby |
| = | 7.46 |
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.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Sime Darby |
| = | 2.84 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Sime EBITDA Comparison
Sime Darby is rated below average in ebitda category among its peers.
Sime Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Sime Darby. 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 Sime Darby 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 Sime Darby's important profitability drivers and their relationship over time.
Use Sime Darby 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 Sime Darby 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 Sime Darby will appreciate offsetting losses from the drop in the long position's value.Sime Darby Pair Trading
Sime Darby Bhd Pair Trading Analysis
The ability to find closely correlated positions to Sime Darby could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Sime Darby 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 Sime Darby - 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 Sime Darby Bhd to buy it.
The correlation of Sime Darby 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 Sime Darby moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Sime Darby Bhd 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 Sime Darby 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 Sime Darby position
In addition to having Sime Darby 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 Corporate ETFs Thematic Idea Now
Corporate ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Corporate ETFs theme has 223 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 Corporate ETFs Theme or any other thematic opportunities.
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Other Information on Investing in Sime Stock
To fully project Sime Darby's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Sime Darby Bhd 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 Sime Darby's income statement, its balance sheet, and the statement of cash flows.