American Century Price to Book vs. Price to Earning

AAAIX
 Fund
  

USD 7.15  0.07  0.99%   

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

Comparative valuation techniques use various fundamental indicators to help in determining American Century's current stock value. Our valuation model uses many indicators to compare American Century value to that of its competitors to determine the firm's financial worth.
American Century Strategic is the top fund in price to book among similar funds. It is the top fund in price to earning among similar funds reporting about  7.56  of Price to Earning per Price to Book. . Comparative valuation analysis is a catch-all model that can be used if you cannot value American Century by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for American Century's Mutual Fund . 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 Century's earnings, one of the primary drivers of an investment's value.

American 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.
American Century 
P/B 
 = 
MV Per Share 
BV Per Share 
2.44 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.
American Century 
P/E 
 = 
Market Value Per Share 
Earnings Per Share 
18.44 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.

American Century Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in American Century, profitability is also one of the essential criteria for including it into their portfolios because, without profit, American Century will eventually generate negative long term returns. The profitability progress is the general direction of American Century's change in net profit over the period of time. It can combine multiple indicators of American Century, 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.
The funds asset allocation strategy diversifies investments among equity securities, bonds and money market instruments. American Century is traded on NASDAQ Exchange in the United States.

American Profitability Driver Comparison

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

Use American Century 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 Century 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 Century will appreciate offsetting losses from the drop in the long position's value.

American Century Pair Trading

American Century Strategic Pair Trading Analysis

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

In addition to having American Century 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 Power Stocks Thematic Idea Now

Power Stocks
Power Stocks Theme
Large capitalization equities showing high long-term performance indicators and above average return expectations based on Macroaxis rating system. The Power Stocks theme has 47 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 Power Stocks Theme or any other thematic opportunities.
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Please continue to Trending Equities. Note that the American Century Str information on this page should be used as a complementary analysis to other American Century'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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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When running American Century Str price analysis, check to measure American Century'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 Century is operating at the current time. Most of American Century's value examination focuses on studying past and present price action to predict the probability of American Century's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move American Century's price. Additionally, you may evaluate how the addition of American Century to your portfolios can decrease your overall portfolio volatility.
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To fully project American Century's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of American Century Str 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 American Century's income statement, its balance sheet, and the statement of cash flows.
Potential American Century investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although American Century investors may work on each financial statement separately, they are all related. The changes in American Century's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on American Century's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.