Provident Agro Price To Book vs. Current Valuation
| PALM Stock | IDR 394.00 4.00 1.01% |
For Provident Agro profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Provident Agro to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Provident Agro Tbk utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Provident Agro's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Provident Agro Tbk over time as well as its relative position and ranking within its peers.
Provident |
Provident Agro Tbk Current Valuation vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Provident Agro's current stock value. Our valuation model uses many indicators to compare Provident Agro value to that of its competitors to determine the firm's financial worth. Provident Agro Tbk is considered to be number one stock in price to book category among its peers. It also is rated top company in current valuation category among its peers reporting about 4,979,392,840,157 of Current Valuation per Price To Book. 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 Provident Agro's earnings, one of the primary drivers of an investment's value.Provident Current Valuation vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Provident Agro |
| = | 0.82 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
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.
Provident Agro |
| = | 4.07 T |
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.
Provident Current Valuation vs Competition
Provident Agro Tbk is rated top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Consumer Staples industry is at this time estimated at about 326.67 Trillion. Provident Agro claims roughly 4.07 Trillion in current valuation contributing just under 2% to stocks in Consumer Staples industry.
Provident Agro Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Provident Agro, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Provident Agro will eventually generate negative long term returns. The profitability progress is the general direction of Provident Agro's change in net profit over the period of time. It can combine multiple indicators of Provident Agro, 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.
PT Provident Agro Tbk, together with its subsidiaries, engages in the operation of palm oil plantations in Indonesia. The company was founded in 2006 and is headquartered in Jakarta, Indonesia. Provident Agro operates under Farm Products classification in Indonesia and is traded on Jakarta Stock Exchange. It employs 742 people.
Provident Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Provident Agro. 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 Provident Agro 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 Provident Agro's important profitability drivers and their relationship over time.
Use Provident Agro 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 Provident Agro 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 Provident Agro will appreciate offsetting losses from the drop in the long position's value.Provident Agro Pair Trading
Provident Agro Tbk Pair Trading Analysis
The ability to find closely correlated positions to Provident Agro could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Provident Agro 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 Provident Agro - 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 Provident Agro Tbk to buy it.
The correlation of Provident Agro 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 Provident Agro moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Provident Agro Tbk 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 Provident Agro 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 Provident Agro position
In addition to having Provident Agro 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 Services Thematic Idea Now
Services
Companies involved in delivering services to business or consumers across different industries and sectors. The Services theme has 30 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 Services Theme or any other thematic opportunities.
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Other Information on Investing in Provident Stock
To fully project Provident Agro's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Provident Agro Tbk 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 Provident Agro's income statement, its balance sheet, and the statement of cash flows.