Vale SA Return On Equity vs. Price To Earning
| VALE Stock | USD 12.00 0.11 0.91% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.20306454 | Current Value 0.23 | Quarterly Volatility 0.23593844 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.5 | 0.4184 |
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For Vale SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Vale SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Vale SA ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Vale SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Vale SA ADR over time as well as its relative position and ranking within its peers.
Vale |
Is Vale SA's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Vale SA. If investors know Vale will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Vale SA listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.1) | Dividend Share 1.75 | Earnings Share 1.78 | Revenue Per Share 47.664 | Quarterly Revenue Growth (0.04) |
The market value of Vale SA ADR is measured differently than its book value, which is the value of Vale that is recorded on the company's balance sheet. Investors also form their own opinion of Vale SA's value that differs from its market value or its book value, called intrinsic value, which is Vale SA's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Vale SA's market value can be influenced by many factors that don't directly affect Vale SA's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Vale SA's value and its price as these two are different measures arrived at by different means. Investors typically determine if Vale SA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vale SA'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.
Vale SA ADR Price To Earning vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Vale SA's current stock value. Our valuation model uses many indicators to compare Vale SA value to that of its competitors to determine the firm's financial worth. Vale SA ADR is rated first in return on equity category among related companies. It is rated below average in price to earning category among related companies reporting about 21.29 of Price To Earning per Return On Equity. At present, Vale SA's Return On Equity is projected to increase slightly based on the last few years of reporting.Comparative valuation analysis is a catch-all model that can be used if you cannot value Vale SA by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Vale SA's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. 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 Vale SA's earnings, one of the primary drivers of an investment's value.Vale Price To Earning vs. Return On Equity
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.
Vale SA |
| = | 0.2 |
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.
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.
Vale SA |
| = | 4.25 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.
Vale Price To Earning Comparison
Vale SA is currently under evaluation in price to earning category among related companies.
Vale SA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Vale SA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Vale SA will eventually generate negative long term returns. The profitability progress is the general direction of Vale SA's change in net profit over the period of time. It can combine multiple indicators of Vale SA, 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 | 14 B | 14.7 B | |
| Operating Income | 14.6 B | 11 B | |
| Income Before Tax | 12.2 B | 7.7 B | |
| Total Other Income Expense Net | -2.4 B | -2.5 B | |
| Net Income Applicable To Common Shares | 110.3 B | 115.8 B | |
| Net Income | 8 B | 7.5 B | |
| Income Tax Expense | 3 B | 1.6 B | |
| Net Income From Continuing Ops | 9.4 B | 7.3 B | |
| Interest Income | 205 M | 194.8 M | |
| Non Operating Income Net Other | 0.00 | 0.00 | |
| Net Interest Income | -1.6 B | -1.7 B | |
| Change To Netincome | -41.4 B | -39.3 B | |
| Net Income Per Share | 1.83 | 1.02 | |
| Income Quality | 1.68 | 3.24 | |
| Net Income Per E B T | 0.65 | 0.87 |
Vale Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Vale SA. 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 Vale SA 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 Vale SA's important profitability drivers and their relationship over time.
Use Vale SA 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 Vale SA 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 Vale SA will appreciate offsetting losses from the drop in the long position's value.Vale SA Pair Trading
Vale SA ADR Pair Trading Analysis
The ability to find closely correlated positions to Vale SA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Vale SA 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 Vale SA - 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 Vale SA ADR to buy it.
The correlation of Vale SA 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 Vale SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Vale SA ADR 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 Vale SA 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 Vale SA position
In addition to having Vale SA 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?
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Complementary Tools for Vale Stock analysis
When running Vale SA's price analysis, check to measure Vale SA'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 Vale SA is operating at the current time. Most of Vale SA's value examination focuses on studying past and present price action to predict the probability of Vale SA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Vale SA's price. Additionally, you may evaluate how the addition of Vale SA to your portfolios can decrease your overall portfolio volatility.
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To fully project Vale SA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Vale SA ADR 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 Vale SA's income statement, its balance sheet, and the statement of cash flows.