Absa Book Value Per Share vs. EBITDA
| ABG Stock | 19,678 51.00 0.26% |
For Absa profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Absa to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Absa Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Absa's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Absa Group over time as well as its relative position and ranking within its peers.
Absa |
Absa Group EBITDA vs. Book Value Per Share Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Absa's current stock value. Our valuation model uses many indicators to compare Absa value to that of its competitors to determine the firm's financial worth. Absa Group is number one stock in book value per share category among its peers. It also is number one stock in ebitda category among its peers totaling about 432,570,429 of EBITDA per Book Value Per Share. 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 Absa's earnings, one of the primary drivers of an investment's value.Absa EBITDA vs. Book Value Per Share
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.
Absa |
| = | 156.68 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.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Absa |
| = | 67.78 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Absa EBITDA Comparison
Absa is currently under evaluation in ebitda category among its peers.
Absa Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Absa. 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 Absa 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 Absa's important profitability drivers and their relationship over time.
Use Absa 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 Absa 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 Absa will appreciate offsetting losses from the drop in the long position's value.Absa Pair Trading
Absa Group Pair Trading Analysis
The ability to find closely correlated positions to Absa could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Absa 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 Absa - 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 Absa Group to buy it.
The correlation of Absa 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 Absa moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Absa 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 Absa 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 Absa position
In addition to having Absa 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 Conservative Funds Thematic Idea Now
Conservative Funds
Funds or Etfs that invest using buy-and-hold investment strategy in companies with consistent growth over many years of operation. The Conservative Funds theme has 40 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 Conservative Funds Theme or any other thematic opportunities.
| View All Next | Launch |
Other Information on Investing in Absa Stock
To fully project Absa's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Absa 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 Absa's income statement, its balance sheet, and the statement of cash flows.