Petrleo Brasileiro Price To Earning vs. Return On Equity
| PBRN Stock | MXN 256.55 4.57 1.75% |
For Petrleo Brasileiro profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Petrleo Brasileiro to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Petrleo Brasileiro SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Petrleo Brasileiro's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Petrleo Brasileiro SA over time as well as its relative position and ranking within its peers.
Petrleo |
Petrleo Brasileiro Return On Equity vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Petrleo Brasileiro's current stock value. Our valuation model uses many indicators to compare Petrleo Brasileiro value to that of its competitors to determine the firm's financial worth. Petrleo Brasileiro SA is rated below average in price to earning category among its peers. It is regarded third in return on equity category among its peers reporting about 0.01 of Return On Equity per Price To Earning. The ratio of Price To Earning to Return On Equity for Petrleo Brasileiro SA is roughly 103.15 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Petrleo Brasileiro by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Petrleo Brasileiro's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Petrleo Return On Equity vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Petrleo Brasileiro |
| = | 48.76 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
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.
Petrleo Brasileiro |
| = | 0.47 |
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.
Petrleo Return On Equity Comparison
Petrleo Brasileiro is regarded second in return on equity category among its peers.
Petrleo Brasileiro Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Petrleo Brasileiro, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Petrleo Brasileiro will eventually generate negative long term returns. The profitability progress is the general direction of Petrleo Brasileiro's change in net profit over the period of time. It can combine multiple indicators of Petrleo Brasileiro, 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.
Petrleo Brasileiro S.A. - Petrobras explores for, produces, and sells oil and gas in Brazil and internationally. Petrleo Brasileiro S.A. - Petrobras was incorporated in 1953 and is headquartered in Rio de Janeiro, Brazil. PETROLEO BRASILEIRO operates under Oil Gas Integrated classification in Mexico and is traded on Mexico Stock Exchange. It employs 45532 people.
Petrleo Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Petrleo Brasileiro. 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 Petrleo Brasileiro 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 Petrleo Brasileiro's important profitability drivers and their relationship over time.
Use Petrleo Brasileiro 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 Petrleo Brasileiro 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 Petrleo Brasileiro will appreciate offsetting losses from the drop in the long position's value.Petrleo Brasileiro Pair Trading
Petrleo Brasileiro SA Pair Trading Analysis
The ability to find closely correlated positions to Petrleo Brasileiro could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Petrleo Brasileiro 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 Petrleo Brasileiro - 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 Petrleo Brasileiro SA to buy it.
The correlation of Petrleo Brasileiro 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 Petrleo Brasileiro moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Petrleo Brasileiro 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 Petrleo Brasileiro 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 Petrleo Brasileiro position
In addition to having Petrleo Brasileiro 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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Additional Tools for Petrleo Stock Analysis
When running Petrleo Brasileiro's price analysis, check to measure Petrleo Brasileiro's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Petrleo Brasileiro is operating at the current time. Most of Petrleo Brasileiro's value examination focuses on studying past and present price action to predict the probability of Petrleo Brasileiro's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Petrleo Brasileiro's price. Additionally, you may evaluate how the addition of Petrleo Brasileiro to your portfolios can decrease your overall portfolio volatility.