Reliance Communications Current Valuation vs. Book Value Per Share
| RCOM Stock | 2.09 0.11 5.00% |
For Reliance Communications profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Reliance Communications to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Reliance Communications Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Reliance Communications's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Reliance Communications Limited over time as well as its relative position and ranking within its peers.
Reliance |
Reliance Communications Book Value Per Share vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Reliance Communications's current stock value. Our valuation model uses many indicators to compare Reliance Communications value to that of its competitors to determine the firm's financial worth. Reliance Communications Limited is rated third in current valuation category among its peers. It also is rated third in book value per share category among its peers . 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 Reliance Communications' earnings, one of the primary drivers of an investment's value.Reliance Current Valuation vs. Competition
Reliance Communications Limited is rated third in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Communication Services industry is at this time estimated at about 2.29 Trillion. Reliance Communications totals roughly 473.41 Billion in current valuation claiming about 21% of stocks in Communication Services industry.
Reliance Book Value Per Share vs. Current Valuation
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.
Reliance Communications |
| = | 473.41 B |
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.
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.
Reliance Communications |
| = | (299.28) X |
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
Reliance Book Value Per Share Comparison
Reliance Communications is currently under evaluation in book value per share category among its peers.
Reliance Communications Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Reliance Communications, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Reliance Communications will eventually generate negative long term returns. The profitability progress is the general direction of Reliance Communications' change in net profit over the period of time. It can combine multiple indicators of Reliance Communications, 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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 22.9 B | 24 B | |
| Operating Income | -120 M | -114 M | |
| Income Before Tax | -870 M | -826.5 M | |
| Total Other Income Expense Net | -750 M | -787.5 M | |
| Net Loss | -72 B | -75.6 B | |
| Income Tax Expense | 140 M | 133 M | |
| Net Loss | -1 B | -1.1 B | |
| Net Loss | -130.5 B | -137 B | |
| Interest Income | 405 M | 384.8 M | |
| Net Interest Income | -540.5 M | -567.5 M | |
| Change To Netincome | 94.2 B | 69.5 B |
Reliance Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Reliance Communications. 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 Reliance Communications 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 Reliance Communications' important profitability drivers and their relationship over time.
Use Reliance Communications 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 Reliance Communications 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 Reliance Communications will appreciate offsetting losses from the drop in the long position's value.Reliance Communications Pair Trading
Reliance Communications Limited Pair Trading Analysis
The ability to find closely correlated positions to Reliance Communications could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Reliance Communications 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 Reliance Communications - 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 Reliance Communications Limited to buy it.
The correlation of Reliance Communications 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 Reliance Communications moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Reliance Communications 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 Reliance Communications 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 Reliance Communications position
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Additional Tools for Reliance Stock Analysis
When running Reliance Communications' price analysis, check to measure Reliance Communications' 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 Reliance Communications is operating at the current time. Most of Reliance Communications' value examination focuses on studying past and present price action to predict the probability of Reliance Communications' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Reliance Communications' price. Additionally, you may evaluate how the addition of Reliance Communications to your portfolios can decrease your overall portfolio volatility.