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Investment horizon:
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30 Days
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Relative Risk vs. Return Landscape
If you would invest
4,715 in The Advisory Board Company on
April 21, 2013 and sell it today you would
earn a total of 320.00 from holding The Advisory Board Company or generate
6.79% return on investment over
30 days. The Advisory Board Company is currenly generating 0.36% of daily expected returns and assumes 2.78% risk (volatility on return distribution) over the 30 days horizon. In different words, 36% of equities are less volatile than The Advisory Board Company and 79% of traded equity instruments are projected to make higher returns than the company over the 30 days investment horizon.
Daily Expected Return (%)
Given investment horizon of 30 days, The Advisory Board Company is expected to generate 5.05 times more return on investment than the market. However, the company is 5.05 times more volatile than its market benchmark. It trades about 0.13 of its potential returns per unit of risk. The S&P 500 is currently generating roughly 0.56 per unit of risk.
Advisory Operating Margin
Based on recorded statements The Advisory Board Company has Operating Margin of 11.14%. This is 437.58% lower than that of Services sector, and 677.2% lower than that of
Business Services industry, The Operating Margin for all stocks is 419.2% lower than the firm.
A good Operating Margin is required for a company to be able to pay for its fixed costs or pay out its debt which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against firm's competitors.
Advisory Return On Equity vs Return On Asset
The Advisory Board Company is rated
below average in return on equity category among related companies. It is rated
below average in return on asset category among related companies reporting about
0.41 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for The Advisory Board Company is roughly
2.42