Vedanta Current Valuation vs. Gross Profit
| VEDL Stock | 460.45 1.65 0.36% |
For Vedanta profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Vedanta to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Vedanta Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Vedanta's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Vedanta Limited over time as well as its relative position and ranking within its peers.
Vedanta |
Vedanta Limited Gross Profit vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Vedanta's current stock value. Our valuation model uses many indicators to compare Vedanta value to that of its competitors to determine the firm's financial worth. Vedanta Limited is rated first in current valuation category among its peers. It is rated first in gross profit category among its peers fabricating about 0.32 of Gross Profit per Current Valuation. The ratio of Current Valuation to Gross Profit for Vedanta Limited is roughly 3.17 . At this time, Vedanta's Gross Profit is comparatively stable compared to the past year. 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 Vedanta's earnings, one of the primary drivers of an investment's value.Vedanta Current Valuation vs. Competition
Vedanta Limited is rated first in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Materials industry is at this time estimated at about 4.83 Trillion. Vedanta totals roughly 2.28 Trillion in current valuation claiming about 47% of all equities under Materials industry.
Vedanta Gross Profit 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.
Vedanta |
| = | 2.28 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.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Vedanta |
| = | 719.34 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Vedanta Gross Profit Comparison
Vedanta is currently under evaluation in gross profit category among its peers.
Vedanta Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Vedanta, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Vedanta will eventually generate negative long term returns. The profitability progress is the general direction of Vedanta's change in net profit over the period of time. It can combine multiple indicators of Vedanta, 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 | 410.6 B | 431.1 B | |
| Operating Income | 650.9 B | 683.4 B | |
| Income Before Tax | 203.6 B | 213.8 B | |
| Total Other Income Expense Net | -447.2 B | -424.9 B | |
| Net Income | 42.4 B | 40.3 B | |
| Income Tax Expense | 128.3 B | 134.7 B | |
| Net Income From Continuing Ops | 140.6 B | 147.6 B | |
| Net Income Applicable To Common Shares | 121.6 B | 127.7 B | |
| Interest Income | 16.9 B | 32.7 B | |
| Net Interest Income | -94.7 B | -89.9 B | |
| Change To Netincome | 107.4 B | 87.9 B |
Vedanta Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Vedanta. 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 Vedanta 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 Vedanta's important profitability drivers and their relationship over time.
Use Vedanta 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 Vedanta 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 Vedanta will appreciate offsetting losses from the drop in the long position's value.Vedanta Pair Trading
Vedanta Limited Pair Trading Analysis
The ability to find closely correlated positions to Vedanta could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Vedanta 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 Vedanta - 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 Vedanta Limited to buy it.
The correlation of Vedanta 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 Vedanta moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Vedanta Limited 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 Vedanta 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 Vedanta position
In addition to having Vedanta 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 Shipping Containers Thematic Idea Now
Shipping Containers
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Shipping Containers theme has 16 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 Shipping Containers Theme or any other thematic opportunities.
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Additional Tools for Vedanta Stock Analysis
When running Vedanta's price analysis, check to measure Vedanta'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 Vedanta is operating at the current time. Most of Vedanta's value examination focuses on studying past and present price action to predict the probability of Vedanta's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Vedanta's price. Additionally, you may evaluate how the addition of Vedanta to your portfolios can decrease your overall portfolio volatility.