British Amer Return On Equity vs. Current Valuation
| BTI Stock | 67,879 840.00 1.22% |
For British Amer profitability analysis, we use financial ratios and fundamental drivers that measure the ability of British Amer to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well British American Tobacco utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between British Amer's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of British American Tobacco over time as well as its relative position and ranking within its peers.
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British American Tobacco Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining British Amer's current stock value. Our valuation model uses many indicators to compare British Amer value to that of its competitors to determine the firm's financial worth. British American Tobacco is number one stock in return on equity category among its peers. It also is the top company in current valuation category among its peers reporting about Huge of Current Valuation 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 British Amer's earnings, one of the primary drivers of an investment's value.British Current Valuation 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.
British Amer |
| = | 0.0957 |
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.
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.
British Amer |
| = | 2.46 T |
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.
British Current Valuation vs Competition
British American Tobacco is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Tobacco industry is currently estimated at about 2.6 Trillion. British Amer totals roughly 2.46 Trillion in current valuation claiming about 95% of equities listed under Tobacco industry.
British Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on British Amer. 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 British Amer 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 British Amer's important profitability drivers and their relationship over time.
Use British Amer 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 British Amer 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 British Amer will appreciate offsetting losses from the drop in the long position's value.British Amer Pair Trading
British American Tobacco Pair Trading Analysis
The ability to find closely correlated positions to British Amer could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace British Amer 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 British Amer - 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 British American Tobacco to buy it.
The correlation of British Amer 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 British Amer moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if British American Tobacco 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 British Amer 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 British Amer position
In addition to having British Amer 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 Developed Markets Basket ETFs Thematic Idea Now
Developed Markets Basket ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Developed Markets Basket ETFs theme has 24 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 Developed Markets Basket ETFs Theme or any other thematic opportunities.
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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 Amer'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. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
To fully project British Amer's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of British American Tobacco 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 British Amer's income statement, its balance sheet, and the statement of cash flows.