Allergan Plc Return On Equity vs. Beta
Based on the measurements of profitability obtained from Allergan Plc's financial statements, Allergan Plc may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in May. Profitability indicators assess Allergan Plc's ability to earn profits and add value for shareholders.
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in price.
Please note, there is a significant difference between Allergan Plc's value and its price as these two are different measures arrived at by different means. Investors typically determine if Allergan Plc is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Allergan Plc'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.
For Allergan Plc profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Allergan Plc to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Allergan Plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Allergan Plc's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Allergan Plc over time as well as its relative position and ranking within its peers.
Allergan |
Allergan Plc Beta vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Allergan Plc's current stock value. Our valuation model uses many indicators to compare Allergan Plc value to that of its competitors to determine the firm's financial worth. Allergan Plc is number one stock in return on equity category among related companies. It is number one stock in beta category among related companies . Comparative valuation analysis is a catch-all model that can be used if you cannot value Allergan Plc by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Allergan Plc'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 Allergan Plc's earnings, one of the primary drivers of an investment's value.Allergan Beta 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.
Allergan Plc |
| = | -0.0913 |
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.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Allergan Plc |
| = | 1.2 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Allergan Beta Comparison
Allergan Plc is currently under evaluation in beta category among related companies.
Beta Analysis
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Allergan Plc will likely underperform.
Allergan Plc Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Allergan Plc, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Allergan Plc will eventually generate negative long term returns. The profitability progress is the general direction of Allergan Plc's change in net profit over the period of time. It can combine multiple indicators of Allergan Plc, 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.
Allergan plc, a pharmaceutical company, develops, manufactures, and commercializes branded pharmaceutical, device, biologic, surgical, and regenerative medicine products worldwide. As of May 8, 2020, Allergan plc operates as a subsidiary of AbbVie Inc. Allergan Plc operates under Drug Manufacturers - General classification in USA and is traded on BATS Exchange. It employs 17400 people.
Allergan Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Allergan Plc. 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 Allergan Plc 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 Allergan Plc's important profitability drivers and their relationship over time.
Use Allergan Plc 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 Allergan Plc 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 Allergan Plc will appreciate offsetting losses from the drop in the long position's value.Allergan Plc Pair Trading
Allergan Plc Pair Trading Analysis
The ability to find closely correlated positions to Microsoft could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Microsoft 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 Microsoft - 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 Microsoft to buy it.
The correlation of Microsoft 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 Microsoft moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Microsoft 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 Microsoft 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 Allergan Plc position
In addition to having Allergan Plc 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 Energy Funds Thematic Idea Now
Energy Funds
Funds or Etfs investing in energy sector, natural resources, and ecology. The Energy Funds theme has 40 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 Energy Funds Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in price. Note that the Allergan Plc information on this page should be used as a complementary analysis to other Allergan Plc's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Consideration for investing in Allergan Stock
If you are still planning to invest in Allergan Plc check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Allergan Plc's history and understand the potential risks before investing.
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |