African Rainbow Operating Margin vs. Book Value Per Share
| AIL Stock | 770.00 3.00 0.39% |
For African Rainbow profitability analysis, we use financial ratios and fundamental drivers that measure the ability of African Rainbow to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well African Rainbow Capital utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between African Rainbow's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of African Rainbow Capital over time as well as its relative position and ranking within its peers.
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African Rainbow Capital Book Value Per Share vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining African Rainbow's current stock value. Our valuation model uses many indicators to compare African Rainbow value to that of its competitors to determine the firm's financial worth. African Rainbow Capital is rated second in operating margin category among its peers. It also is rated second in book value per share category among its peers creating about 12.18 of Book Value Per Share per Operating Margin. 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 African Rainbow's earnings, one of the primary drivers of an investment's value.African Book Value Per Share vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
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| = | 0.83 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.
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| = | 10.07 X |
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
African Book Value Per Share Comparison
African Rainbow is currently under evaluation in book value per share category among its peers.
African Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on African Rainbow. 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 African Rainbow 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 African Rainbow's important profitability drivers and their relationship over time.
Use African Rainbow 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 African Rainbow 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 African Rainbow will appreciate offsetting losses from the drop in the long position's value.African Rainbow Pair Trading
African Rainbow Capital Pair Trading Analysis
The ability to find closely correlated positions to African Rainbow could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace African Rainbow 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 African Rainbow - 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 African Rainbow Capital to buy it.
The correlation of African Rainbow 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 African Rainbow moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if African Rainbow Capital 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 African Rainbow 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 African Rainbow position
In addition to having African Rainbow 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 Pharmaceutical Products Thematic Idea Now
Pharmaceutical Products
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Pharmaceutical Products theme has 61 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 Pharmaceutical Products Theme or any other thematic opportunities.
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Other Information on Investing in African Stock
To fully project African Rainbow's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of African Rainbow Capital 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 African Rainbow's income statement, its balance sheet, and the statement of cash flows.