AMERICAN ELEDRN Price to Book vs. Beta

For AMERICAN ELEDRN profitability analysis, we use financial ratios and fundamental drivers that measure the ability of AMERICAN ELEDRN to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well AMERICAN ELEDRN utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between AMERICAN ELEDRN's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of AMERICAN ELEDRN over time as well as its relative position and ranking within its peers. Check out Trending Equities.
  
Please note, there is a significant difference between AMERICAN ELEDRN's value and its price as these two are different measures arrived at by different means. Investors typically determine AMERICAN ELEDRN value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AMERICAN ELEDRN'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.

AMERICAN ELEDRN Beta vs. Price to Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining AMERICAN ELEDRN's current stock value. Our valuation model uses many indicators to compare AMERICAN ELEDRN value to that of its competitors to determine the firm's financial worth.
AMERICAN ELEDRN is number one stock in price to book category among related companies. It is rated second in beta category among related companies totaling about  0.05  of Beta per Price to Book. The ratio of Price to Book to Beta for AMERICAN ELEDRN is roughly  20.35 . Comparative valuation analysis is a catch-all model that can be used if you cannot value AMERICAN ELEDRN by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for AMERICAN ELEDRN'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 AMERICAN ELEDRN's earnings, one of the primary drivers of an investment's value.

AMERICAN Beta 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.
AMERICAN ELEDRN 
P/B 
 = 
MV Per Share 
BV Per Share 
5.29 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.
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 will be 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.
AMERICAN ELEDRN 
Beta 
 = 
Covariance 
Variance 
0.26
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.

Beta Analysis

Let's try to break down what AMERICAN's beta means in this case. As returns on the market increase, AMERICAN ELEDRN returns are expected to increase less than the market. However, during the bear market, the loss on holding AMERICAN ELEDRN will be expected to be smaller as well.

AMERICAN ELEDRN Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in AMERICAN ELEDRN, profitability is also one of the essential criteria for including it into their portfolios because, without profit, AMERICAN ELEDRN will eventually generate negative long term returns. The profitability progress is the general direction of AMERICAN ELEDRN's change in net profit over the period of time. It can combine multiple indicators of AMERICAN ELEDRN, 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.
American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. American Electric Power Company, Inc. was incorporated in 1906 and is headquartered in Columbus, Ohio. AMERICAN ELEDRN operates under UtilitiesRegulated Electric classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 16787 people.

AMERICAN Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on AMERICAN ELEDRN. 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 AMERICAN ELEDRN 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 AMERICAN ELEDRN's important profitability drivers and their relationship over time.

Use AMERICAN ELEDRN 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 AMERICAN ELEDRN 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 AMERICAN ELEDRN will appreciate offsetting losses from the drop in the long position's value.

AMERICAN ELEDRN Pair Trading

AMERICAN ELEDRN Pair Trading Analysis

The ability to find closely correlated positions to Twitter could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Twitter 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 Twitter - 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 Twitter to buy it.
The correlation of Twitter is a statistical measure of how it moves in relation to other equities. 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 Twitter moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Twitter 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 Twitter 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your AMERICAN ELEDRN position

In addition to having AMERICAN ELEDRN 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.

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Run Exotic Thematic Idea Now

Exotic
Exotic Theme
Funds or Etfs with high minimum investment requirement that manage portfolios of alternative investments such as hedge funds, options, futures, real estate or commodities. The Exotic 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 Exotic Theme or any other thematic opportunities.
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Check out Trending Equities. Note that the AMERICAN ELEDRN information on this page should be used as a complementary analysis to other AMERICAN ELEDRN'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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Other Tools for AMERICAN Stock

When running AMERICAN ELEDRN price analysis, check to measure AMERICAN ELEDRN'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 AMERICAN ELEDRN is operating at the current time. Most of AMERICAN ELEDRN's value examination focuses on studying past and present price action to predict the probability of AMERICAN ELEDRN's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move AMERICAN ELEDRN's price. Additionally, you may evaluate how the addition of AMERICAN ELEDRN to your portfolios can decrease your overall portfolio volatility.
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