Chunghwa Telecom Return On Equity vs. Price To Sales

CHT Stock  USD 37.61  0.36  0.95%   
Taking into consideration Chunghwa Telecom's profitability measurements, Chunghwa Telecom Co is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Chunghwa Telecom's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.09718449
Current Value
0.13
Quarterly Volatility
0.01427508
 
Credit Downgrade
 
Yuan Drop
 
Covid
Operating Cash Flow Sales Ratio is likely to gain to 0.44 in 2024, whereas Price To Sales Ratio is likely to drop 3.06 in 2024. At this time, Chunghwa Telecom's Accumulated Other Comprehensive Income is comparatively stable compared to the past year. Total Other Income Expense Net is likely to gain to about 743.9 M in 2024, whereas Income Tax Expense is likely to drop slightly above 8 B in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.470.3648
Significantly Up
Slightly volatile
Net Profit Margin0.220.1656
Significantly Up
Very volatile
Operating Profit Margin0.280.2077
Significantly Up
Pretty Stable
Pretax Profit Margin0.290.2106
Significantly Up
Pretty Stable
Return On Assets0.10.0706
Significantly Up
Slightly volatile
Return On Equity0.130.0972
Significantly Up
Slightly volatile
For Chunghwa Telecom profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Chunghwa Telecom to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Chunghwa Telecom Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Chunghwa Telecom's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Chunghwa Telecom Co over time as well as its relative position and ranking within its peers.
  
Check out Trending Equities.
Is Diversified Telecommunication Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Chunghwa Telecom. If investors know Chunghwa will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Chunghwa Telecom listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.01)
Dividend Share
4.758
Earnings Share
1.45
Revenue Per Share
73.01
Quarterly Revenue Growth
0.036
The market value of Chunghwa Telecom is measured differently than its book value, which is the value of Chunghwa that is recorded on the company's balance sheet. Investors also form their own opinion of Chunghwa Telecom's value that differs from its market value or its book value, called intrinsic value, which is Chunghwa Telecom's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Chunghwa Telecom's market value can be influenced by many factors that don't directly affect Chunghwa Telecom's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Chunghwa Telecom's value and its price as these two are different measures arrived at by different means. Investors typically determine if Chunghwa Telecom is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chunghwa Telecom's 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.

Chunghwa Telecom Price To Sales vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Chunghwa Telecom's current stock value. Our valuation model uses many indicators to compare Chunghwa Telecom value to that of its competitors to determine the firm's financial worth.
Chunghwa Telecom Co is rated third in return on equity category among its peers. It is rated below average in price to sales category among its peers fabricating about  1.33  of Price To Sales per Return On Equity. At this time, Chunghwa Telecom's Return On Equity is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Chunghwa Telecom by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Chunghwa Price To Sales vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Chunghwa Telecom

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0973
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Chunghwa Telecom

P/S

 = 

MV Per Share

Revenue Per Share

 = 
0.13 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Chunghwa Price To Sales Comparison

Chunghwa Telecom is currently under evaluation in price to sales category among its peers.

Chunghwa Telecom Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Chunghwa Telecom, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Chunghwa Telecom will eventually generate negative long term returns. The profitability progress is the general direction of Chunghwa Telecom's change in net profit over the period of time. It can combine multiple indicators of Chunghwa Telecom, 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
Accumulated Other Comprehensive Income353 M370.6 M
Operating Income46.4 B40.2 B
Income Before Tax47 B41.2 B
Total Other Income Expense Net655 M743.9 M
Net Income Applicable To Common Shares41.9 B44 B
Net Income37 B49.5 B
Income Tax Expense8.9 BB
Net Income From Continuing Ops38.1 B38.3 B
Interest Income557.8 M572.4 M
Net Interest Income251.7 M264.3 M
Change To Netincome2.4 B2.5 B
Net Income Per Share 4.76  3.82 
Income Quality 2.02  1.95 
Net Income Per E B T 0.79  0.63 

Chunghwa Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Chunghwa Telecom. 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 Chunghwa Telecom 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 Chunghwa Telecom's important profitability drivers and their relationship over time.

Use Chunghwa Telecom 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 Chunghwa Telecom 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 Chunghwa Telecom will appreciate offsetting losses from the drop in the long position's value.

Chunghwa Telecom Pair Trading

Chunghwa Telecom Co Pair Trading Analysis

The ability to find closely correlated positions to Chunghwa Telecom could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Chunghwa Telecom 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 Chunghwa Telecom - 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 Chunghwa Telecom Co to buy it.
The correlation of Chunghwa Telecom 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 Chunghwa Telecom moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Chunghwa Telecom 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 Chunghwa Telecom 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 Chunghwa Telecom position

In addition to having Chunghwa Telecom 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 Oil And Gas Thematic Idea Now

Oil And Gas
Oil And Gas Theme
Companies involved in drilling, production, and distribution of oil and gas pipelines. The Oil And Gas theme has 37 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 Oil And Gas Theme or any other thematic opportunities.
View All  Next Launch

Additional Tools for Chunghwa Stock Analysis

When running Chunghwa Telecom's price analysis, check to measure Chunghwa Telecom'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 Chunghwa Telecom is operating at the current time. Most of Chunghwa Telecom's value examination focuses on studying past and present price action to predict the probability of Chunghwa Telecom's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Chunghwa Telecom's price. Additionally, you may evaluate how the addition of Chunghwa Telecom to your portfolios can decrease your overall portfolio volatility.