Retail Estates Price To Book vs. Return On Equity

RET Stock  EUR 59.30  0.70  1.19%   
Based on Retail Estates' profitability indicators, Retail Estates may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Retail Estates' ability to earn profits and add value for shareholders.
For Retail Estates profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Retail Estates to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Retail Estates utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Retail Estates's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Retail Estates over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Retail Estates' value and its price as these two are different measures arrived at by different means. Investors typically determine if Retail Estates is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Retail Estates' 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.

Retail Estates Return On Equity vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Retail Estates's current stock value. Our valuation model uses many indicators to compare Retail Estates value to that of its competitors to determine the firm's financial worth.
Retail Estates is currently regarded as top stock in price to book category among its peers. It also is currently regarded as top stock in return on equity category among its peers reporting about  0.25  of Return On Equity per Price To Book. The ratio of Price To Book to Return On Equity for Retail Estates is roughly  3.98 . 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 Retail Estates' earnings, one of the primary drivers of an investment's value.

Retail Return On Equity 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.

Retail Estates

P/B

 = 

MV Per Share

BV Per Share

 = 
0.85 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.
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.

Retail Estates

Return On Equity

 = 

Net Income

Total Equity

 = 
0.21
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.

Retail Return On Equity Comparison

Retail Estates is currently under evaluation in return on equity category among its peers.

Retail Estates Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Retail Estates, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Retail Estates will eventually generate negative long term returns. The profitability progress is the general direction of Retail Estates' change in net profit over the period of time. It can combine multiple indicators of Retail Estates, 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.
Retail Estates nv is a public regulated real estate company and more specifically a niche company that specialises in investing in out-of-town retail properties which are located on the periphery of residential areas or along main access roads into urban centres. As at 31 March 2019, the stock market capitalisation of the shares amounts to EUR 927.52 million. RETAIL ESTATES operates under REIT - Retail classification in Belgium and is traded on Brussels Stock Exchange. It employs 26 people.

Retail Profitability Driver Comparison

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

Learn to be your own money manager

Our tools can tell you how much better you can do entering a position in Retail Estates without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Use Investing Themes to Complement your Retail Estates position

In addition to having Retail Estates 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.

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Candy and Soda Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Candy and Soda theme has 13 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 Candy and Soda Theme or any other thematic opportunities.
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Additional Tools for Retail Stock Analysis

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