Commonwealth Bank Profit Margin vs. Current Valuation
| CBA Stock | 150.26 5.73 3.67% |
For Commonwealth Bank profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Commonwealth Bank to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Commonwealth Bank utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Commonwealth Bank's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Commonwealth Bank over time as well as its relative position and ranking within its peers.
Commonwealth |
Commonwealth Bank Current Valuation vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Commonwealth Bank's current stock value. Our valuation model uses many indicators to compare Commonwealth Bank value to that of its competitors to determine the firm's financial worth. Commonwealth Bank is number one stock in profit margin category among its peers. It also is the top company in current valuation category among its peers reporting about 979,817,038,999 of Current Valuation per Profit Margin. 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 Commonwealth Bank's earnings, one of the primary drivers of an investment's value.Commonwealth Current Valuation vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Commonwealth Bank |
| = | 0.36 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
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.
Commonwealth Bank |
| = | 352.44 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.
Commonwealth Current Valuation vs Competition
Commonwealth Bank is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is currently estimated at about 1.42 Trillion. Commonwealth Bank totals roughly 352.44 Billion in current valuation claiming about 25% of equities under Financials industry.
Commonwealth Bank Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Commonwealth Bank, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Commonwealth Bank will eventually generate negative long term returns. The profitability progress is the general direction of Commonwealth Bank's change in net profit over the period of time. It can combine multiple indicators of Commonwealth Bank, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -2.1 B | -2 B | |
| Operating Income | -84 M | -79.8 M | |
| Income Before Tax | 13.8 B | 7.6 B | |
| Net Income | 9.5 B | 8.9 B | |
| Income Tax Expense | 4.3 B | 2.3 B | |
| Net Income Applicable To Common Shares | 11.6 B | 7.1 B | |
| Net Income From Continuing Ops | 9.5 B | 8.9 B | |
| Total Other Income Expense Net | 13.8 B | 14.5 B | |
| Net Interest Income | 22.8 B | 21.2 B | |
| Interest Income | 61 B | 39.2 B | |
| Change To Netincome | 643 M | 610.9 M |
Commonwealth Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Commonwealth Bank. 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 Commonwealth Bank 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 Commonwealth Bank's important profitability drivers and their relationship over time.
Use Commonwealth Bank 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 Commonwealth Bank 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 Commonwealth Bank will appreciate offsetting losses from the drop in the long position's value.Commonwealth Bank Pair Trading
Commonwealth Bank Pair Trading Analysis
The ability to find closely correlated positions to Commonwealth Bank could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Commonwealth Bank 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 Commonwealth Bank - 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 Commonwealth Bank to buy it.
The correlation of Commonwealth Bank 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 Commonwealth Bank moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Commonwealth Bank 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 Commonwealth Bank 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 Commonwealth Bank position
In addition to having Commonwealth Bank 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 Precious Metals ETFs Thematic Idea Now
Precious Metals ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Precious Metals ETFs theme has 29 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 Precious Metals ETFs Theme or any other thematic opportunities.
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Additional Tools for Commonwealth Stock Analysis
When running Commonwealth Bank's price analysis, check to measure Commonwealth Bank'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 Commonwealth Bank is operating at the current time. Most of Commonwealth Bank's value examination focuses on studying past and present price action to predict the probability of Commonwealth Bank's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Commonwealth Bank's price. Additionally, you may evaluate how the addition of Commonwealth Bank to your portfolios can decrease your overall portfolio volatility.