African Rainbow Price To Book vs. EBITDA
| 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 EBITDA vs. Price To Book 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 price to book category among its peers. It is number one stock in ebitda category among its peers totaling about 2,549,990,478 of EBITDA per Price To Book. 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 EBITDA vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
African Rainbow |
| = | 0.53 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
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.
African Rainbow |
| = | 1.34 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.
African EBITDA Comparison
African Rainbow is currently under evaluation in ebitda 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?
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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.