RITES Return On Equity vs. Current Valuation

RITES Stock   287.85  1.55  0.54%   
Based on RITES's profitability indicators, RITES Limited may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in January. Profitability indicators assess RITES's ability to earn profits and add value for shareholders.
For RITES profitability analysis, we use financial ratios and fundamental drivers that measure the ability of RITES to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well RITES Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between RITES's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of RITES Limited over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between RITES's value and its price as these two are different measures arrived at by different means. Investors typically determine if RITES is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, RITES'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.

RITES Limited Current Valuation vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining RITES's current stock value. Our valuation model uses many indicators to compare RITES value to that of its competitors to determine the firm's financial worth.
RITES Limited is currently regarded as top stock in return on equity category among its peers. It also is currently regarded number one company in current valuation category among its peers reporting about  648,247,323,514  of Current Valuation per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value RITES by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for RITES'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.

RITES 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.

RITES

Return On Equity

 = 

Net Income

Total Equity

 = 
0.16
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.

RITES

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
105.53 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.

RITES Current Valuation vs Competition

RITES Limited is currently regarded number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is at this time estimated at about 1.18 Trillion. RITES holds roughly 105.53 Billion in current valuation claiming about 9% of equities under Industrials industry.

RITES Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in RITES, profitability is also one of the essential criteria for including it into their portfolios because, without profit, RITES will eventually generate negative long term returns. The profitability progress is the general direction of RITES's change in net profit over the period of time. It can combine multiple indicators of RITES, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income16.2 B17.1 B
Operating Income7.5 B5.4 B
Income Before Tax6.7 B6.5 B
Total Other Income Expense Net-768.4 M-730 M
Net Income4.6 B6.3 B
Income Tax Expense1.8 B1.9 B
Net Income From Continuing OpsB4.9 B
Net Income Applicable To Common Shares6.2 B4.8 B
Net Interest Income-47.1 M-44.7 M
Interest Income54.6 M51.9 M
Change To Netincome277.4 M291.2 M

RITES Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on RITES. 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 RITES 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 RITES's important profitability drivers and their relationship over time.

Use RITES 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 RITES 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 RITES will appreciate offsetting losses from the drop in the long position's value.

RITES Pair Trading

RITES Limited Pair Trading Analysis

The ability to find closely correlated positions to RITES could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace RITES 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 RITES - 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 RITES Limited to buy it.
The correlation of RITES 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 RITES moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if RITES Limited 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 RITES 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your RITES position

In addition to having RITES 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 Insurance Providers Thematic Idea Now

Insurance Providers
Insurance Providers Theme
Companies providing all types of insurance and insurance services. The Insurance Providers theme has 37 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 Insurance Providers Theme or any other thematic opportunities.
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Other Information on Investing in RITES Stock

To fully project RITES's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of RITES Limited 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 RITES's income statement, its balance sheet, and the statement of cash flows.
Potential RITES investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although RITES investors may work on each financial statement separately, they are all related. The changes in RITES's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on RITES's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.