T Rowe Price To Book vs. Five Year Return
| PRNHX Fund | USD 56.80 0.48 0.85% |
For T Rowe profitability analysis, we use financial ratios and fundamental drivers that measure the ability of T Rowe to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well T Rowe Price utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between T Rowe's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of T Rowe Price over time as well as its relative position and ranking within its peers.
PRNHX |
T Rowe Price Five Year Return vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining T Rowe's current stock value. Our valuation model uses many indicators to compare T Rowe value to that of its competitors to determine the firm's financial worth. T Rowe Price is rated top fund in price to book among similar funds. It also is rated top fund in five year return among similar funds reporting about 1.99 of Five Year Return 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 T Rowe's earnings, one of the primary drivers of an investment's value.PRNHX Five Year Return 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.
T Rowe |
| = | 3.97 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.
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.
T Rowe |
| = | 7.91 % |
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.
PRNHX Five Year Return Comparison
T Rowe is currently under evaluation in five year return among similar funds.
T Rowe Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in T Rowe, profitability is also one of the essential criteria for including it into their portfolios because, without profit, T Rowe will eventually generate negative long term returns. The profitability progress is the general direction of T Rowe's change in net profit over the period of time. It can combine multiple indicators of T Rowe, 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 fund invests primarily in a diversified group of small, emerging growth companies, preferably early in their corporate life cycle before the companies become widely recognized by the investment community. It may also invest in companies that offer the possibility of accelerating earnings growth because of rejuvenated management, new products, or structural changes in the economy.
PRNHX Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on T Rowe. 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 T Rowe 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 T Rowe's important profitability drivers and their relationship over time.
Use T Rowe 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 T Rowe 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 T Rowe will appreciate offsetting losses from the drop in the long position's value.T Rowe Pair Trading
T Rowe Price Pair Trading Analysis
The ability to find closely correlated positions to T Rowe could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace T Rowe 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 T Rowe - 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 T Rowe Price to buy it.
The correlation of T Rowe 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 T Rowe moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if T Rowe Price 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 T Rowe 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 T Rowe position
In addition to having T Rowe 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 Shipbuilding Railroad Equipment Thematic Idea Now
Shipbuilding Railroad Equipment
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Shipbuilding Railroad Equipment theme has 16 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 Shipbuilding Railroad Equipment Theme or any other thematic opportunities.
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Other Information on Investing in PRNHX Mutual Fund
To fully project T Rowe's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of T Rowe Price 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 T Rowe's income statement, its balance sheet, and the statement of cash flows.
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