TAL Education Net Income vs. Beta
| T1AL34 Stock | BRL 6.06 0.07 1.14% |
For TAL Education profitability analysis, we use financial ratios and fundamental drivers that measure the ability of TAL Education to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well TAL Education Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between TAL Education's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of TAL Education Group over time as well as its relative position and ranking within its peers.
TAL |
TAL Education Group Beta vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining TAL Education's current stock value. Our valuation model uses many indicators to compare TAL Education value to that of its competitors to determine the firm's financial worth. TAL Education Group is rated fifth in net income category among its peers. It is rated below average in beta category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value TAL Education by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for TAL Education'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.TAL Beta vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
TAL Education |
| = | (1.14 B) |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
TAL Education |
| = | -0.12 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
TAL Beta Comparison
TAL Education is rated fifth in beta category among its peers.
Beta Analysis
As returns on the market increase, returns on owning TAL Education are expected to decrease at a much lower rate. During the bear market, TAL Education is likely to outperform the market.
TAL Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on TAL Education. 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 TAL Education 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 TAL Education's important profitability drivers and their relationship over time.
Use TAL Education 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 TAL Education 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 TAL Education will appreciate offsetting losses from the drop in the long position's value.TAL Education Pair Trading
TAL Education Group Pair Trading Analysis
The ability to find closely correlated positions to TAL Education could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace TAL Education 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 TAL Education - 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 TAL Education Group to buy it.
The correlation of TAL Education 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 TAL Education moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if TAL Education Group 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 TAL Education 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 TAL Education position
In addition to having TAL Education 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 Absolute Returns ETFs Thematic Idea Now
Absolute Returns ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Absolute Returns ETFs theme has 45 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 Absolute Returns ETFs Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in TAL Stock
When determining whether TAL Education Group is a strong investment it is important to analyze TAL Education's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact TAL Education's future performance. For an informed investment choice regarding TAL Stock, refer to the following important reports:Check out World Market Map. You can also try the Stocks Directory module to find actively traded stocks across global markets.
To fully project TAL Education's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of TAL Education Group 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 TAL Education's income statement, its balance sheet, and the statement of cash flows.