Bank of Communications Price To Book vs. Revenue

601328 Stock   7.68  0.18  2.40%   
Based on Bank of Communications' profitability indicators, Bank of Communications may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Bank of Communications' ability to earn profits and add value for shareholders.
For Bank of Communications profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Bank of Communications to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Bank of Communications utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Bank of Communications's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Bank of Communications 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 Bank of Communications' value and its price as these two are different measures arrived at by different means. Investors typically determine if Bank of Communications is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bank of Communications' 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.

Bank of Communications Revenue vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Bank of Communications's current stock value. Our valuation model uses many indicators to compare Bank of Communications value to that of its competitors to determine the firm's financial worth.
Bank of Communications is rated below average in price to book category among its peers. It also is rated below average in revenue category among its peers totaling about  498,631,149,135  of Revenue per Price To Book. At present, Bank of Communications' Total Revenue is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all model that can be used if you cannot value Bank of Communications by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Bank of Communications' 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.

Bank Revenue 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.

Bank of Communications

P/B

 = 

MV Per Share

BV Per Share

 = 
0.51 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.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Bank of Communications

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
256.45 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Bank Revenue vs Competition

Bank of Communications is rated below average in revenue category among its peers. Market size based on revenue of Financials industry is presently estimated at about 8.52 Trillion. Bank of Communications holds roughly 256.45 Billion in revenue claiming about 3% of equities under Financials industry.

Bank of Communications Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Bank of Communications, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Bank of Communications will eventually generate negative long term returns. The profitability progress is the general direction of Bank of Communications' change in net profit over the period of time. It can combine multiple indicators of Bank of 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 ReportedProjected for Next Year
Operating Income101.7 B117.7 B
Income Before Tax99.7 B75.2 B
Net Income Applicable To Common Shares97.4 B58.9 B
Net Income92.7 B62.7 B
Income Tax Expense7.1 B12.4 B
Net Income From Continuing Ops93.3 B86.9 B
Total Other Income Expense Net-243 M-230.8 M
Net Interest Income164.1 B163.1 B
Interest Income459.9 B405.4 B
Change To Netincome9.5 B9.9 B

Bank Profitability Driver Comparison

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

Use Bank of 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 Bank of 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 Bank of Communications will appreciate offsetting losses from the drop in the long position's value.

Bank of Communications Pair Trading

Bank of Communications Pair Trading Analysis

The ability to find closely correlated positions to Bank of 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 Bank of 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 Bank of 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 Bank of Communications to buy it.
The correlation of Bank of 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 Bank of Communications moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bank of 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 Bank of 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Bank of Communications position

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ISP
ISP Theme
Internet Service Providers (ISP) companies and IT providers specializing in internet technologies. The ISP theme has 39 constituents at this time.
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Other Information on Investing in Bank Stock

To fully project Bank of Communications' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Bank of Communications 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 Bank of Communications' income statement, its balance sheet, and the statement of cash flows.
Potential Bank of Communications investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Bank of Communications investors may work on each financial statement separately, they are all related. The changes in Bank of Communications's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Bank of Communications'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.