Brown Forman Market Capitalization vs. Total Debt
| BF5B Stock | 35.39 0.37 1.03% |
For Brown Forman profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Brown Forman to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Brown Forman Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Brown Forman's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Brown Forman Corp over time as well as its relative position and ranking within its peers.
Brown |
Brown Forman Corp Total Debt vs. Market Capitalization Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Brown Forman's current stock value. Our valuation model uses many indicators to compare Brown Forman value to that of its competitors to determine the firm's financial worth. Brown Forman Corp is number one stock in market capitalization category among its peers. It also is the top company in total debt category among its peers making up about 0.06 of Total Debt per Market Capitalization. The ratio of Market Capitalization to Total Debt for Brown Forman Corp is roughly 16.44 . 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 Brown Forman's earnings, one of the primary drivers of an investment's value.Brown Total Debt vs. Market Capitalization
Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.
Brown Forman |
| = | 33.19 B |
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Brown Forman |
| = | 2.02 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Brown Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Brown Forman. 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 Brown Forman 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 Brown Forman's important profitability drivers and their relationship over time.
Use Brown Forman 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 Brown Forman 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 Brown Forman will appreciate offsetting losses from the drop in the long position's value.Brown Forman Pair Trading
Brown Forman Corp Pair Trading Analysis
The ability to find closely correlated positions to Brown Forman could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Brown Forman 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 Brown Forman - 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 Brown Forman Corp to buy it.
The correlation of Brown Forman 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 Brown Forman moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Brown Forman Corp 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 Brown Forman 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 Brown Forman position
In addition to having Brown Forman 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 Machinery Thematic Idea Now
Machinery
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Machinery theme has 61 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 Machinery Theme or any other thematic opportunities.
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Additional Tools for Brown Stock Analysis
When running Brown Forman's price analysis, check to measure Brown Forman's 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 Brown Forman is operating at the current time. Most of Brown Forman's value examination focuses on studying past and present price action to predict the probability of Brown Forman's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Brown Forman's price. Additionally, you may evaluate how the addition of Brown Forman to your portfolios can decrease your overall portfolio volatility.