Invesco Senior Price To Earning vs. Price To Sales

VVR Fund  USD 3.99  0.01  0.25%   
Considering Invesco Senior's profitability and operating efficiency indicators, Invesco Senior Income may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Invesco Senior's ability to earn profits and add value for shareholders.
For Invesco Senior profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Invesco Senior to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Invesco Senior Income utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Invesco Senior's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Invesco Senior Income 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 Invesco Senior's value and its price as these two are different measures arrived at by different means. Investors typically determine if Invesco Senior is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Invesco Senior'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.

Invesco Senior Income Price To Sales vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Invesco Senior's current stock value. Our valuation model uses many indicators to compare Invesco Senior value to that of its competitors to determine the firm's financial worth.
Invesco Senior Income is presently regarded as number one fund in price to earning among similar funds. It also is presently regarded as number one fund in price to sales among similar funds fabricating about  1.02  of Price To Sales per Price To Earning. Comparative valuation analysis is a catch-all technique that is used if you cannot value Invesco Senior 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.

Invesco Price To Sales vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Invesco Senior

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
11.75 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
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.

Invesco Senior

P/S

 = 

MV Per Share

Revenue Per Share

 = 
11.94 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.

Invesco Price To Sales Comparison

Invesco Senior is currently under evaluation in price to sales among similar funds.

Invesco Senior Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Invesco Senior, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Invesco Senior will eventually generate negative long term returns. The profitability progress is the general direction of Invesco Senior's change in net profit over the period of time. It can combine multiple indicators of Invesco Senior, 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.
Invesco Senior Income Trust is a closed ended fixed income mutual fund launched by Invesco Ltd. It is co-managed by Invesco Advisers, Inc., Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc., and Invesco Canada Ltd. The fund invests in the fixed income markets of the United States. It primarily invests in a portfolio of interests in floating or variable rate senior loans to corporations, partnerships, and other entities which operate in a variety of industries and geographical regions. The fund typically employs fundamental analysis with a bottom up stock picking approach to create its portfolio. It benchmarks the performance of its portfolio against the Credit Suisse Leveraged Loan Index. The fund was formerly known as Invesco Van Kampen Senior Income Trust and Van Kampen Senior Income Trust. Invesco Senior Income Trust was formed on June 23, 1998 and is domiciled in the United States.

Invesco Profitability Driver Comparison

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

Use Invesco Senior 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 Invesco Senior 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 Invesco Senior will appreciate offsetting losses from the drop in the long position's value.

Invesco Senior Pair Trading

Invesco Senior Income Pair Trading Analysis

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

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Other Information on Investing in Invesco Fund

To fully project Invesco Senior's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Invesco Senior Income 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 Invesco Senior's income statement, its balance sheet, and the statement of cash flows.
Potential Invesco Senior investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Invesco Senior investors may work on each financial statement separately, they are all related. The changes in Invesco Senior's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Invesco Senior's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
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