ANTHEM INC Price to Book vs. Price to Earning

For ANTHEM INC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ANTHEM INC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ANTHEM INC DRN utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ANTHEM INC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ANTHEM INC DRN 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 ANTHEM INC's value and its price as these two are different measures arrived at by different means. Investors typically determine ANTHEM INC value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ANTHEM INC'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.

ANTHEM INC DRN Price to Earning vs. Price to Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining ANTHEM INC's current stock value. Our valuation model uses many indicators to compare ANTHEM INC value to that of its competitors to determine the firm's financial worth.
ANTHEM INC DRN is number one stock in price to book category among related companies. It is number one stock in price to earning category among related companies reporting about  1.49  of Price to Earning per Price to Book. . Comparative valuation analysis is a catch-all model that can be used if you cannot value ANTHEM INC by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for ANTHEM INC'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 ANTHEM INC's earnings, one of the primary drivers of an investment's value.

ANTHEM Price to Earning 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.
ANTHEM INC 
P/B 
 = 
MV Per Share 
BV Per Share 
16.85 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.
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.
ANTHEM INC 
P/E 
 = 
Market Value Per Share 
Earnings Per Share 
25.12 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.

ANTHEM INC Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in ANTHEM INC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ANTHEM INC will eventually generate negative long term returns. The profitability progress is the general direction of ANTHEM INC's change in net profit over the period of time. It can combine multiple indicators of ANTHEM INC, 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.
Anthem, Inc., through its subsidiaries, operates as a health benefits company in the United States. Anthem, Inc. was founded in 1944 and is headquartered in Indianapolis, Indiana. ANTHEM INC operates under Healthcare Plans classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 83400 people.

ANTHEM Profitability Driver Comparison

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

Use ANTHEM INC 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 ANTHEM INC 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 ANTHEM INC will appreciate offsetting losses from the drop in the long position's value.

ANTHEM INC Pair Trading

ANTHEM INC DRN Pair Trading Analysis

The ability to find closely correlated positions to Fidelity National could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Fidelity National 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 Fidelity National - 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 Fidelity National Information to buy it.
The correlation of Fidelity National 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 Fidelity National moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Fidelity National 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 Fidelity National 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 ANTHEM INC position

In addition to having ANTHEM INC 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 Conservative Thematic Idea Now

Conservative
Conservative Theme
Funds or Etfs that invest using buy-and-hold investment strategy in companies with consistent growth over many years of operation. The Conservative 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 Conservative Theme or any other thematic opportunities.
View All  Next Launch
Check out Trending Equities. Note that the ANTHEM INC DRN information on this page should be used as a complementary analysis to other ANTHEM INC'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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

Other Tools for ANTHEM Stock

When running ANTHEM INC DRN price analysis, check to measure ANTHEM INC'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 ANTHEM INC is operating at the current time. Most of ANTHEM INC's value examination focuses on studying past and present price action to predict the probability of ANTHEM INC's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move ANTHEM INC's price. Additionally, you may evaluate how the addition of ANTHEM INC to your portfolios can decrease your overall portfolio volatility.
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go