Alerian Energy Five Year Return vs. Price To Book
| ENFR Etf | USD 31.57 0.05 0.16% |
For Alerian Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Alerian Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Alerian Energy Infrastructure utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Alerian Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Alerian Energy Infrastructure over time as well as its relative position and ranking within its peers.
Alerian |
The market value of Alerian Energy Infra is measured differently than its book value, which is the value of Alerian that is recorded on the company's balance sheet. Investors also form their own opinion of Alerian Energy's value that differs from its market value or its book value, called intrinsic value, which is Alerian Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Alerian Energy's market value can be influenced by many factors that don't directly affect Alerian Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Alerian Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Alerian Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alerian Energy'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.
Alerian Energy Infra Price To Book vs. Five Year Return Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Alerian Energy's current stock value. Our valuation model uses many indicators to compare Alerian Energy value to that of its competitors to determine the firm's financial worth. Alerian Energy Infrastructure is rated # 3 ETF in five year return as compared to similar ETFs. It is one of the top ETFs in price to book as compared to similar ETFs fabricating about 0.12 of Price To Book per Five Year Return. The ratio of Five Year Return to Price To Book for Alerian Energy Infrastructure is roughly 8.52 . Comparative valuation analysis is a catch-all technique that is used if you cannot value Alerian Energy by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Alerian Price To Book vs. Five Year Return
Five Year Return is considered one of the best measures to evaluate fund performance, especially from the mid and long term perspective. It shows the total annualized return generated from holding equity for the last five years and represents capital appreciation of the investment, including all dividends, losses, and capital gains distributions.
Alerian Energy |
| = | 16.70 % |
Although Five Year Returns can give a sense of overall investment potential, it is recommended to compare equity performance with similar assets for the same five year time interval. Similarly, comparing overall investment performance over the last five years with the appropriate market index is a great way to determine how this equity instrument will perform during unforeseen market fluctuations.
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.
Alerian Energy |
| = | 1.96 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.
Alerian Price To Book Comparison
Alerian Energy is currently under evaluation in price to book as compared to similar ETFs.
Alerian Energy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Alerian Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Alerian Energy will eventually generate negative long term returns. The profitability progress is the general direction of Alerian Energy's change in net profit over the period of time. It can combine multiple indicators of Alerian Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
The underlying index is a composite of North American energy infrastructure companies engaged in midstream activities involving energy commodities including gathering and processing, liquefaction, pipeline transportation, rail terminaling, and storage . Alerian Energy is traded on NYSEARCA Exchange in the United States.
Alerian Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Alerian Energy. 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 Alerian Energy 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 Alerian Energy's important profitability drivers and their relationship over time.
Use Alerian Energy 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 Alerian Energy 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 Alerian Energy will appreciate offsetting losses from the drop in the long position's value.Alerian Energy Pair Trading
Alerian Energy Infrastructure Pair Trading Analysis
The ability to find closely correlated positions to Alerian Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Alerian Energy 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 Alerian Energy - 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 Alerian Energy Infrastructure to buy it.
The correlation of Alerian Energy 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 Alerian Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Alerian Energy Infra 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 Alerian Energy 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 Alerian Energy position
In addition to having Alerian Energy 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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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 Penny Theme or any other thematic opportunities.
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Check out Investing Opportunities. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
To fully project Alerian Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Alerian Energy Infra 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 Alerian Energy's income statement, its balance sheet, and the statement of cash flows.