Relative Risk vs. Return Landscape
If you would invest 8,549
in Baidu Inc on April 26, 2013
and sell it today you would earn a total of 1,096
from holding Baidu Inc or generate 12.82%
return on investment over 30
days. Baidu Inc is currenly generating 0.63% of daily expected returns and assumes 2.32% risk (volatility on return distribution) over the 30 days horizon. In different words, 30% of equities are less volatile than Baidu Inc and 64% 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, Baidu Inc is expected to generate 4.0 times more return on investment than the market. However, the company is 4.0 times more volatile than its market benchmark. It trades about 0.27 of its potential returns per unit of risk. The S&P 500 is currently generating roughly 0.34 per unit of risk.
Baidu Operating Margin
Based on recorded statements Baidu Inc has Operating Margin of 46.52%. This is 353.38% lower than that of Technology sector, and 239.41% lower than that of Internet Information Providers
industry, The Operating Margin for all stocks is 1378.02% 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.
Baidu Return On Equity vs Return On Asset
Baidu Inc is rated third
in return on equity category among related companies. It is rated second
in return on asset category among related companies reporting about 0.43
of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Baidu Inc is roughly 2.30