Time Warner Price To Book vs. Return On Equity
Considering Time Warner's profitability and operating efficiency indicators, Time Warner may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in July. Profitability indicators assess Time Warner's ability to earn profits and add value for shareholders.
Check out World Market Map to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing.
Please note, there is a significant difference between Time Warner's value and its price as these two are different measures arrived at by different means. Investors typically determine if Time Warner is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Time Warner'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 Time Warner profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Time Warner to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Time Warner utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Time Warner's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Time Warner over time as well as its relative position and ranking within its peers.
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Time Warner Return On Equity vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Time Warner's current stock value. Our valuation model uses many indicators to compare Time Warner value to that of its competitors to determine the firm's financial worth. Time Warner is currently regarded as top stock in price to book category among its peers. It is rated below average in return on equity category among its peers . The ratio of Price To Book to Return On Equity for Time Warner is about 1,813 . 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 Time Warner's earnings, one of the primary drivers of an investment's value.Time Return On Equity vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Time Warner |
| = | 2.72 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
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.
Time Warner |
| = | 0.0015 |
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.
Time Return On Equity Comparison
Time Warner is currently under evaluation in return on equity category among its peers.
Time Warner Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Time Warner, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Time Warner will eventually generate negative long term returns. The profitability progress is the general direction of Time Warner's change in net profit over the period of time. It can combine multiple indicators of Time Warner, 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.
Time Warner Inc. operates as a media and entertainment company in the United States and internationally. Time Warner Inc. was founded in 1985 and is headquartered in New York, New York. Time Warner operates under Media - Diversified classification in USA and traded on New York Stock Exchange. It employs 26000 people.
Time Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Time Warner. 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 Time Warner 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 Time Warner's important profitability drivers and their relationship over time.
Use Time Warner 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 Time Warner 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 Time Warner will appreciate offsetting losses from the drop in the long position's value.Time Warner Pair Trading
Time Warner Pair Trading Analysis
The ability to find closely correlated positions to Equifax could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Equifax 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 Equifax - 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 Equifax to buy it.
The correlation of Equifax 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 Equifax moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Equifax 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 Equifax 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 Time Warner position
In addition to having Time Warner 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 Cars Thematic Idea Now
Cars
Domestic and international companies involved in manufacturing and serving automobiles and trucks. The Cars theme has 43 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 Cars Theme or any other thematic opportunities.
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Check out World Market Map to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing. You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Consideration for investing in Time Stock
If you are still planning to invest in Time Warner 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 Time Warner's history and understand the potential risks before investing.
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