British American Current Valuation vs. Return On Asset
| BMTA Stock | EUR 34.80 0.16 0.46% |
For British American profitability analysis, we use financial ratios and fundamental drivers that measure the ability of British American to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well British American Tobacco utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between British American's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of British American Tobacco over time as well as its relative position and ranking within its peers.
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British American Tobacco Return On Asset vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining British American's current stock value. Our valuation model uses many indicators to compare British American value to that of its competitors to determine the firm's financial worth. British American Tobacco is rated below average in current valuation category among its peers. It is rated below average in return on asset category among its peers . The ratio of Current Valuation to Return On Asset for British American Tobacco is about 2,658,882,445,269 . 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 British American's earnings, one of the primary drivers of an investment's value.British Current Valuation vs. Competition
British American Tobacco is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Tobacco industry is currently estimated at about 1.08 Trillion. British American retains roughly 133.21 Billion in current valuation claiming about 12% of equities listed under Tobacco industry.
British Return On Asset vs. Current Valuation
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.
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| = | 133.21 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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
British American |
| = | 0.0501 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
British Return On Asset Comparison
British American is rated below average in return on asset category among its peers.
British American Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in British American, profitability is also one of the essential criteria for including it into their portfolios because, without profit, British American will eventually generate negative long term returns. The profitability progress is the general direction of British American's change in net profit over the period of time. It can combine multiple indicators of British American, 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.
British American Tobacco p.l.c. provides cigarettes and other tobacco products worldwide. British American Tobacco p.l.c. was founded in 1902 and is headquartered in London, the United Kingdom. BRIT AMER operates under Tobacco classification in Germany and is traded on Frankfurt Stock Exchange. It employs 65593 people.
British Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on British American. 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 British American 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 British American's important profitability drivers and their relationship over time.
Use British American 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 British American 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 British American will appreciate offsetting losses from the drop in the long position's value.British American Pair Trading
British American Tobacco Pair Trading Analysis
The ability to find closely correlated positions to British American could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace British American 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 British American - 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 British American Tobacco to buy it.
The correlation of British American 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 British American moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if British American Tobacco 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 British American 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 British American position
In addition to having British American 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 Electrical Equipment Thematic Idea Now
Electrical Equipment
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Electrical Equipment 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 Electrical Equipment Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in British Stock
When determining whether British American Tobacco offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of British American's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of British American Tobacco Stock. Outlined below are crucial reports that will aid in making a well-informed decision on British American Tobacco Stock:Check out Trending Equities. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
To fully project British American's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of British American Tobacco 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 British American's income statement, its balance sheet, and the statement of cash flows.