Valuation Ratio – Regiofora http://regiofora.com/ Tue, 21 Jun 2022 07:54:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://regiofora.com/wp-content/uploads/2021/07/icon-5-150x150.png Valuation Ratio – Regiofora http://regiofora.com/ 32 32 Ashok Leyland share price: Ashok Leyland share gains 1.96% as Sensex rises https://regiofora.com/ashok-leyland-share-price-ashok-leyland-share-gains-1-96-as-sensex-rises/ Tue, 21 Jun 2022 07:54:00 +0000 https://regiofora.com/ashok-leyland-share-price-ashok-leyland-share-gains-1-96-as-sensex-rises/ Shares of . traded down 1.96% to Rs 135.5 at 13:24 (IST) on Tuesday, even as BSE benchmark Sensex gained 1118.99 points to 52716.83. The stock stood at Rs 132.9 in the previous session. The stock quoted a 52-week high of Rs 153.4 and a 52-week low of Rs 93.2, respectively. According to BSE data, […]]]>
Shares of . traded down 1.96% to Rs 135.5 at 13:24 (IST) on Tuesday, even as BSE benchmark Sensex gained 1118.99 points to 52716.83.

The stock stood at Rs 132.9 in the previous session. The stock quoted a 52-week high of Rs 153.4 and a 52-week low of Rs 93.2, respectively. According to BSE data, the total trading volume on the counter till 1:24 PM (IST) stood at 529,790 shares with a turnover of Rs 7.14 crore.

At the prevailing price, the company’s shares were trading at -110.8 times its 12-month earnings per share of -1.22 rupees per share and 4.71 times its price-to-book ratio, according to the data. of BSE.



A higher P/E ratio shows that investors are willing to pay a higher price today due to growth expectations in the future.

The price-to-book ratio indicates the inherent value of a company and reflects the price investors are willing to pay even if the company does not grow. The stock’s beta, which measures its volatility relative to the broader market, was 1.55.

Shareholding details

The promoters held 0.0% of the company’s capital as of March 31, 2022, while the FIIs held 13.34% and the DIIs 15.31%.

Techniques

On technical charts, the stock’s Relative Strength Index (RSI) came in at 53.37. The RSI oscillates between zero and 100. Traditionally, it is considered an overbought condition when the RSI value is above 70 and an oversold condition when it is below 30. Chartists say that the RSI should not be considered in isolation, as it may not be enough to take a trade call, just as fundamental analysts cannot give a “buy” or “sell” recommendation using a single valuation ratio.

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Critical survey: Anywhere Real Estate (HOUS) and its competitors https://regiofora.com/critical-survey-anywhere-real-estate-hous-and-its-competitors/ Sun, 19 Jun 2022 14:14:27 +0000 https://regiofora.com/critical-survey-anywhere-real-estate-hous-and-its-competitors/ All over real estate (NYSE: HOUS – Get a rating) is one of 24 publicly traded companies in the Real Estate Agents & Managers industry, but how does it stack up against its competitors? We will compare Anywhere Real Estate to similar companies based on its dividend strength, valuation, profitability, earnings, risk, institutional ownership and […]]]>

All over real estate (NYSE: HOUSGet a rating) is one of 24 publicly traded companies in the Real Estate Agents & Managers industry, but how does it stack up against its competitors? We will compare Anywhere Real Estate to similar companies based on its dividend strength, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.

Valuation and benefits

This chart compares the revenue, earnings per share (EPS), and valuation of Anywhere Real Estate and its competitors.

Gross revenue Net revenue Price/earnings ratio
Everywhere Real Estate $7.98 billion $343.00 million 3.36
Anywhere Real Estate Competitors $5.01 billion $192.55 million 0.01

Anywhere Real Estate has higher revenues and profits than its competitors. Anywhere Real Estate trades at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Anywhere Real Estate has a beta of 2.46, indicating that its stock price is 146% more volatile than the S&P 500. Comparatively, Anywhere Real Estate’s competitors have a beta of 1.29, indicating that their average price is 29% more volatile than the S&P. 500.

Profitability

This table compares the net margins, return on equity and return on assets of Anywhere Real Estate and its competitors.

Net margins Return on equity return on assets
Everywhere Real Estate 4.13% 14.24% 4.21%
Anywhere Real Estate Competitors 2.52% 7.06% 1.50%

Analyst Recommendations

This is a summary of the current ratings and recommendations for Anywhere Real Estate and its competitors, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Everywhere Real Estate 0 0 0 0 N / A
Anywhere Real Estate Competitors 58 342 553 13 2.54

As a group, the “Real Estate Agents and Managers” companies have an upside potential of 78.84%. Since Anywhere Real Estate’s competitors have higher upside potential, analysts clearly believe that Anywhere Real Estate has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

63.7% of the shares of all “Real Estate Agents and Managers” companies are held by institutional investors. 2.7% of the shares of Anywhere Real Estate are held by insiders of the company. Comparatively, 26.5% of the shares of all “Real Estate Agents and Managers” companies are held by insiders of the company. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock will outperform the market over the long term.

Summary

Anywhere Real Estate beats its competitors on 7 of the 10 factors compared.

Anywhere Real Estate Company Profile (Get a rating)

Anywhere Real Estate Inc., through its subsidiaries, provides residential real estate services. It operates through three segments: Realogy Franchise Group and Realogy Brokerage Group. The Realogy Franchise Group segment franchises its residential real estate agencies under the Century 21, Coldwell Banker, Coldwell Banker Commercial, Corcoran, ERA, Sotheby’s International Realty and Better Homes and Gardens Real Estate brands. This segment also offers lead generation and relocation services. As of December 31, 2020, real estate franchise systems and own brands in this segment had approximately 20,100 offices and 320,700 independent sales agents worldwide. The Realogy Brokerage Group segment owns and operates a full-service residential real estate brokerage business under the Coldwell Banker, Corcoran and Sotheby’s International Realty brands to assist home buyers and sellers with listing, marketing, sales and research of houses. As of December 31, 2020, this segment owned and operated 670 brokerage offices with approximately 53,100 independent sales agents. The Realogy Title Group segment provides title, escrow and settlement services to real estate companies, corporations and financial institutions. This segment also serves as an underwriter of title insurance policies in connection with residential and commercial real estate transactions. The company was previously known as Realogy Holdings Corp. and changed its name to Anywhere Real Estate Inc. in June 2022. Anywhere Real Estate Inc. was incorporated in 2006 and is headquartered in Madison, New Jersey.



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Avis Budget Group (CAR) exceeds stock market gains: what you need to know https://regiofora.com/avis-budget-group-car-exceeds-stock-market-gains-what-you-need-to-know/ Fri, 17 Jun 2022 23:18:48 +0000 https://regiofora.com/avis-budget-group-car-exceeds-stock-market-gains-what-you-need-to-know/ AVis Budget Group (CAR) closed at $160.83 last trading session, marking a +0.25% move from the previous day. That move topped the S&P 500’s 0.22% daily gain. Meanwhile, the Dow Jones lost 0.13% and the tech-heavy Nasdaq gained 0.2%. Heading into today, shares of the car rental company had lost 10.73% over the past month, […]]]>

AVis Budget Group (CAR) closed at $160.83 last trading session, marking a +0.25% move from the previous day. That move topped the S&P 500’s 0.22% daily gain. Meanwhile, the Dow Jones lost 0.13% and the tech-heavy Nasdaq gained 0.2%.

Heading into today, shares of the car rental company had lost 10.73% over the past month, lagging the business services sector’s 7.62% loss and the 8.32% loss of the S&P 500 during this period.

Investors are hoping for Avis Budget Group’s strength as it approaches its next earnings release. In this report, analysts expect Avis Budget Group to post earnings of $12.13 per share. This would mark a year-over-year growth of 105.59%. Meanwhile, Zacks’ consensus estimate for revenue calls for net sales of $3.11 billion, up 31.25% from the year-ago period.

For the full year, our Zacks consensus estimates call for earnings of $39.29 per share and revenue of $11.46 billion, which would represent changes of +74.7% and +23, 1%, respectively, compared to the previous year.

Investors might also notice recent changes in analyst estimates for Avis Budget Group. These revisions help show the ever-changing nature of short-term trading trends. Thus, positive revisions to estimates reflect analysts’ optimism about the company’s business and profitability.

Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.

The Zacks ranking system ranges from #1 (strong buy) to #5 (strong sell). It has a remarkable, externally audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate rose 9.3% in the month last. Avis Budget Group is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, Avis Budget Group is currently trading at a forward P/E ratio of 4.08. For comparison, its industry has an average Forward P/E of 12.65, which means Avis Budget Group is trading at a discount to the group.

Investors should also note that CAR has a PEG ratio of 0.21 at this time. This measure is used in the same way as the famous P/E ratio, but the PEG ratio also takes into account the growth rate of the stock’s expected earnings. Corporates – Services stocks hold, on average, a PEG ratio of 0.73 based on yesterday’s closing prices.

The Business – Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 146, which places it in the bottom 43% of all 250+ industries.

The Zacks Industry Rankings are ranked from best to worst in terms of the average Zacks Ranking of individual companies in each of these industries. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and more, at Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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James F. Reddoch sells 100,000 shares of Royalty Pharma plc (NASDAQ: RPRX) https://regiofora.com/james-f-reddoch-sells-100000-shares-of-royalty-pharma-plc-nasdaq-rprx/ Sat, 11 Jun 2022 22:16:21 +0000 https://regiofora.com/james-f-reddoch-sells-100000-shares-of-royalty-pharma-plc-nasdaq-rprx/ Royalty Pharma plc (NASDAQ: RPRX – Get a rating) Executive Vice Chairman James F. Reddoch sold 100,000 shares in a trade on Wednesday, June 8. The shares were sold at an average price of $41.56, for a total value of $4,156,000.00. Following the completion of the transaction, the executive vice president now owns 920,800 shares […]]]>

Royalty Pharma plc (NASDAQ: RPRX – Get a rating) Executive Vice Chairman James F. Reddoch sold 100,000 shares in a trade on Wednesday, June 8. The shares were sold at an average price of $41.56, for a total value of $4,156,000.00. Following the completion of the transaction, the executive vice president now owns 920,800 shares of the company, valued at $38,268,448. The sale was disclosed in a filing with the SEC, accessible via this hyperlink.

Shares of RPRX traded down $0.60 during the midday session on Friday, hitting $40.48. The company’s stock had a trading volume of 1,060,095 shares, compared to an average trading volume of 1,922,520 shares. The company’s fifty-day simple moving average is $41.20 and its 200-day simple moving average is $39.98. Royalty Pharma plc has a 52-week low of $34.86 and a 52-week high of $46.53. The company has a debt ratio of 0.70, a quick ratio of 21.95 and a current ratio of 21.95. The company has a market capitalization of $24.58 billion, a PE ratio of 40.59, a P/E/G ratio of 1.14 and a beta of 0.36.

Royalty Pharma (NASDAQ:RPRX – Get a rating) last released its quarterly earnings data on Thursday, May 5. The biopharmaceutical company reported earnings per share of $0.61 for the quarter, missing the consensus estimate of $0.72 per ($0.11). Royalty Pharma had a return on equity of 16.75% and a net margin of 26.46%. The company posted revenue of $605.00 million in the quarter, versus a consensus estimate of $583.77 million. On average, stock analysts expect Royalty Pharma plc to post earnings per share of 2.97 for the current year.

(A d)

What is the most productive stock you have ever owned? Dividends from these stocks have grown so rapidly over the years that they now earn us an average of 26%!

When you start getting paid 26% on your money, your financial troubles tend to evaporate.

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 15. Shareholders of record on Friday, May 20 will receive a dividend of $0.19. This represents an annualized dividend of $0.76 and a dividend yield of 1.88%. The ex-dividend date is Thursday, May 19. Royalty Pharma’s dividend payout ratio (DPR) is currently 76.00%.

RPRX has been the subject of a number of research reports. Scotiabank launched coverage on Royalty Pharma in a research note on Friday, May 13. They issued an “outperform” rating and a price target of $53.00 for the company. Morgan Stanley downgraded Royalty Pharma from an “equal weight” rating to an “overweight” rating and raised its price target for the company from $46.00 to $48.00 in a Wednesday research note April 6. JPMorgan Chase & Co. upgraded Royalty Pharma from a “neutral” rating to an “overweight” rating and set a $50.00 price target for the company in a Thursday, April 14 research note. They noted that the move was a review call. Zacks Investment Research upgraded Royalty Pharma from a “sell” to a “hold” rating in a Thursday, May 26 research report. To finish, StockNews.com supposed coverage of Royalty Pharma in a Thursday, March 31 research report. They set a “hold” rating for the company. Two investment analysts gave the stock a hold rating and six gave the company a buy rating. According to MarketBeat, the company has an average rating of “Buy” and an average price target of $49.63.

Several hedge funds have recently bought and sold shares of the company. Morgan Stanley raised its position in Royalty Pharma shares by 5.6% in the second quarter. Morgan Stanley now owns 50,794,041 shares of the biopharmaceutical company worth $2,082,049,000 after acquiring an additional 2,675,799 shares last quarter. Vanguard Group Inc. increased its stake in Royalty Pharma shares by 7.5% in Q1. Vanguard Group Inc. now owns 31,860,621 shares of the biopharmaceutical company valued at $1,241,289,000 after purchasing an additional 2,224,056 shares during the period. Adage Capital Partners GP LLC increased its stake in Royalty Pharma shares by 0.6% in the 4th quarter. Adage Capital Partners GP LLC now owns 24,842,715 shares of the biopharmaceutical company valued at $989,982,000 after purchasing an additional 144,900 shares during the period. BlackRock Inc. increased its stake in Royalty Pharma shares by 4.6% in Q1. BlackRock Inc. now owns 17,483,188 shares of the biopharmaceutical company valued at $681,145,000 after purchasing an additional 767,864 shares during the period. Finally, Viking Global Investors LP increased its stake in Royalty Pharma shares by 4.4% in the 1st quarter. Viking Global Investors LP now owns 10,764,472 shares of the biopharmaceutical company valued at $419,384,000 after purchasing an additional 449,094 shares during the period. 51.68% of the shares are held by hedge funds and other institutional investors.

Royal Pharma Company Profile (Get a rating)

Royalty Pharma plc operates as a buyer of biopharmaceutical royalties and funder of innovations in the biopharmaceutical industry in the United States. She is also involved in the identification, evaluation and acquisition of royalties on various biopharmaceutical therapies. In addition, the company collaborates with innovators from academic institutions, research hospitals and non-profit organizations, small and medium biotech companies and pharmaceutical companies.

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Insider buying and selling by quarter for Royalty Pharma (NASDAQ:RPRX)

This instant alert was powered by MarketBeat’s narrative science technology and financial data to provide readers with the fastest and most accurate reports. This story was reviewed by MarketBeat’s editorial team prior to publication. Please send questions or comments about this story to [email protected]

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Do favorable winds justify its assessment? https://regiofora.com/do-favorable-winds-justify-its-assessment/ Thu, 09 Jun 2022 21:44:40 +0000 https://regiofora.com/do-favorable-winds-justify-its-assessment/ General dynamics (GD) is one of the few leading aerospace and defense companies in the United States, specializing in the development, engineering, and high-end manufacturing of advanced solutions, primarily for the U.S. government and its allies. Specifically, 70% and 10% of the company’s consolidated revenue last year came from US government and US non-government customers […]]]>

General dynamics (GD) is one of the few leading aerospace and defense companies in the United States, specializing in the development, engineering, and high-end manufacturing of advanced solutions, primarily for the U.S. government and its allies.

Specifically, 70% and 10% of the company’s consolidated revenue last year came from US government and US non-government customers (allies), respectively. The remaining 12% and 8% came from US and non-US business customers respectively.

General Dynamics’ broad portfolio of products and services includes business aviation, shipbuilding, ground combat vehicles, weapons systems, munitions, and technology services.

The company’s competitive advantage, in addition to its proprietary technologies in the above products and services, is that each of its business units is responsible for optimizing its own operating results. As a result, the business operates with minimal friction and considerable flexibility with respect to each division’s capital requirements and capital allocation.

On the one hand, the company has several other qualities, including an exceptional record of return on capital and creation of value for shareholders. Additionally, as a defense contractor, General Dynamics stands to benefit from the current unfortunate war in Ukraine.

On the other hand, with the stock’s valuation hovering at relatively high levels, investors’ total return prospects going forward may be somewhat limited. Accordingly, I am neutral on the title.

Current business landscape

Aerospace and defense contractors like General Dynamics are currently experiencing strong tailwinds due to the unfortunate ongoing war in Ukraine. As Western governments continue to supply Ukraine with all types of relevant weapons and equipment, space companies are poised to increase their arrears and future revenues.

The current situation should not be a temporary event, as Western allies will eventually have to restock their arsenals due to constant deliveries, which in military terms could mean years of delays for contractors. In fact, in his fourth quarter earnings call (before the outbreak of war), the CEO of General Dynamics had noted that demand for combat vehicles in Eastern Europe had been at high levels for some time now. .

It just goes to show that defense contractors typically benefit before, during and after conflict, which means the current war could mean prolonged tailwinds for the company.

Recent performances

General Dynamics’ most recent results once again demonstrated the company’s mastery of successfully meeting its backlog and producing resilient financial statements.

Quarterly revenue was flat at $9.4 billion, though earnings per share rose 5.6% year-on-year to $2.63. Note that since General Dynamics is a defense contractor, revenue growth isn’t really a meaningful metric. Investors should especially pay attention to General Dynamics’ ability to expand its order book and its overall capabilities to meet it.

As the backlog grows, the company’s revenue and profitability should gradually do the same, as it has historically.

Indeed, General Dynamics’ backlog growth momentum remains quite strong, with the company posting a book-to-bill ratio of around 1.7x. This means that General Dynamics’ cash flow over the next 1.5 to two years should be relatively secure from its customers, provided, of course, that the company carries out these projects.

Overall, as long as General Dynamics’ backlog growth recedes from its shipping volumes, the book-to-bill ratio should remain healthy. Thus, the company’s medium-term revenues should also remain fairly predictable. With the ongoing war in Ukraine likely to lead to increased military budgets in the future, this will most likely continue to be the case.

Dividends and valuation

Given that General Dynamics’ order-to-bill ratio remains historically healthy, as I mentioned earlier, the company’s performance exhibits little to no volatility. This allowed General Dynamics to gradually increase returns on its capital over time. In particular, the company has an impressive history of dividend growth, boasting 27 consecutive years of annual dividend increases.

This places the company among the elite constituents of the S&P 500’s Dividend Aristocrat Index. The company has a five-year dividend growth CAGR of 9.13%, which is quite remarkable given the maturity of General Dynamics’ dividend growth record. The most recent dividend increase was also quite substantial, raising the quarterly payout rate by 5.9% to $1.26. The title is currently yielding nearly 2.15%.

Management did not update its guidance, which targets annual revenue of between $39.2 billion and $39.45 billion. EPS is also expected to range between $12.00 and $12.15 for fiscal 2022. The midpoint of management’s ESP outlook suggests the stock is currently trading at a forward P/E of 18.8x at its current price levels. On an NTM basis, that figure drops to less than 18x.

While this seems like a relatively fair valuation given the aerospace and defense macro environment that looks quite promising, the current multiple is at the high end of the stock’s historical P/E range.

The Taking of Wall Street

On Wall Street, General Dynamics has a Strong Buy Consensus Rating based on seven buys and two holds awarded over the past three months.

At $275.67, the average projection for General Dynamics shares implies 21.5% upside potential.

Carry

On the one hand, Mr. Market is likely forecasting above-average EPS growth in the coming years due to continued tailwinds benefiting the industry. Market enthusiasm is confirmed by the stock’s premium valuation and confident price target, implying even noticeable upside potential from here.

On the other hand, as we mentioned earlier, the company’s results derive from its order book and its ability to meet it. So, even if the backlog increases in the future, which is certainly good news, General Dynamics’ production capacities are only expected to increase at a slower rate each year.

Based on the company’s historical growth rates and valuations, current business environment, most recent results and outlook, I would view the stock as more reasonably valued at a forward P/E of around 17. .

So while General Dynamics remains a quality company with a strong case for its ability to continue to generate strong shareholder value creation over the long term, investors should consider that its short-term upside potential could likely be reduced. exhaust at the current share price.

Disclosure

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LIC balance sheet: should the small investor keep his shares? https://regiofora.com/lic-balance-sheet-should-the-small-investor-keep-his-shares/ Wed, 08 Jun 2022 01:00:00 +0000 https://regiofora.com/lic-balance-sheet-should-the-small-investor-keep-his-shares/ Anand is a middle-aged investor who was enthusiastic about participating in the IPO of LIC of India. A long-time LIC insured, he had taken out insurance as part of the protection plan. He was attracted by LIC’s claim that the offer price was low compared to the price based on the intrinsic value of the […]]]>

Anand is a middle-aged investor who was enthusiastic about participating in the IPO of LIC of India. A long-time LIC insured, he had taken out insurance as part of the protection plan.

He was attracted by LIC’s claim that the offer price was low compared to the price based on the intrinsic value of the business. When LIC offered a Rs 60 rebate to policyholders, they were eager to subscribe to the show. It secured an allocation at Rs 889 against the issue price of Rs 949.

Kavita was also convinced by LIC’s IPO valuation metric. She participated as a retail investor and secured an allocation at Rs 904 per share after a discount of Rs 45.

Also Read: Why LIC’s IPO May Not Be As Attractive As Claimed

Many small investors like Anand and Kavita were disappointed when the stock traded at a discount on opening day. On subsequent trading days, the stock slowly declined, and on June 1, the closing price was Rs 810.40. On June 6, LIC’s share price fell further to Rs 777.35 at the NSE. On June 7, it fell to a new low and closed at Rs 753.

Also Read: LIC Shares Hit New Low Monday; could go further south, experts say

It is unfortunate that a public issue by an institution owned by the Indian government has set an unreasonable price for the issue, which has led to the disappointment of many small investors. Compared to the shares of other private life insurers traded in the market, there could have been a more reasonable price for the issue.

While it is up to the individual investor to decide whether to hold or sell an investment based on their risk appetite, investment time horizon, financial goals, etc., here is an attempt to understand the situation current.

Recent work results

LIC’s financial results for the quarter ended March 2022 are out. It reported a net profit of Rs 2,409 crore for the quarter, down 17.41% from Rs 2,917.33 crore in the same period last year. The company’s net profit for the full year was reported at Rs 4,043.12 crore, 39.4% higher than Rs 2,900.56 crore in FY21. Although the overall annual result showed an improvement, the result for the last quarter was not encouraging.

Also Read: Grossly Undervalued, LIC’s Most Controversial IPO Ever

In this regard, it is important to note the statement of LIC Managing Director, Raj Kumar, that LIC will match the profitability of its private sector counterparts over the next five years. LIC’s investment return fell to 8.55% in FY22 from 8.69% in FY21. It is the largest asset manager in the country with assets of Rs 42 trillion; therefore, even a small increase or decrease in yield matters a lot.

Earnings per share (based on income)

The shareholding structure of LIC is as follows: out of a total of 6,324,997,701 shares, the government holds 6,103,622,781 shares and the public holds 221,374,920 shares.

When we factor in the net profit of Rs 4,043.12 crore, the earnings per share stands at Rs 6.39.

Price/earnings ratio

When we take the market price of the share at Rs 810 (as of June 1, 2022), the Price to Earnings (PE) ratio stands at 126.76.

Let’s compare how the market has rated other life insurance companies in terms of PE ratio. ICICI Prudential’s PE ratio is 103.77, HDFC Life is 96.68 and SBI Life is 76.59.

So even after the price drop, the price of LIC in terms of PE ratio is higher. Even if the highest valuation given for ICICI Prudential Life is taken into account, the LIC share price is expected to be only Rs 660 compared to the current market price of Rs 810. Is there any justification for the higher LIC share price?

When we compare the market valuation of general insurers by government entities and the private sector, we again find that the market still discounts public general insurers. For public banks and private banks as well, the market valuation is similar and public banks are quoted at a discount to the PE ratio.

Price at book value

Even in terms of the price-to-book ratio, LIC’s stock price is pretty high. While LIC is quoted at 40.72 times its book value, HDFC Life is only at 10.17 times. All other life insurers are rated even lower.

Also Read: Q4 LIC Earnings Drop 17% to Rs 2,409 cr; declares a dividend of Rs 1.50 per share

On a comparative basis, when the book value is around Rs 20, if the highest valuation, as in the case of HDFC Life, is taken, then the price rises to Rs 203 only.

Limitation

It is true that the PE ratio or the price to book value cannot be the only criteria to determine the value of a stock. There may be other reasons to believe that in the future there could be more business growth, earnings growth, unlocking potential valuation, etc. But in the case of LIC, there is no such reason in sight; more so when the CEO of LIC says it will take five years to match the profitability of private insurers.

The individual investor should consider all of these issues. The last call, of course, belongs to him.

(The author is a retired banker.)

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AB InBev and Equifax among Morningstar’s best and cheapest stocks https://regiofora.com/ab-inbev-and-equifax-among-morningstars-best-and-cheapest-stocks/ Fri, 03 Jun 2022 19:45:43 +0000 https://regiofora.com/ab-inbev-and-equifax-among-morningstars-best-and-cheapest-stocks/ With the S&P 500 having fallen 14% this year, you might be thinking now is the time for a bargain. If so, you might want to consider Morningstar List of the 10 most undervalued stocks on its “Best Companies to Own” list. Companies on this “best of” list are awarded broad moats by Morningstar, meaning […]]]>

With the S&P 500 having fallen 14% this year, you might be thinking now is the time for a bargain.

If so, you might want to consider Morningstar List of the 10 most undervalued stocks on its “Best Companies to Own” list.

Companies on this “best of” list are awarded broad moats by Morningstar, meaning it believes companies will deliver returns above cost for the next 20 years or more.

The strength of companies’ competitive advantages is either stable or increasing.

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Adani Gas stock price: Adani Gas stock drops 0.14% as Nifty gains https://regiofora.com/adani-gas-stock-price-adani-gas-stock-drops-0-14-as-nifty-gains/ Fri, 03 Jun 2022 06:37:00 +0000 https://regiofora.com/adani-gas-stock-price-adani-gas-stock-drops-0-14-as-nifty-gains/ NEW DELHI: Shares of Ltd. traded down 0.14% in Friday trade at 12:07 p.m. (IST). Approximately 5,076 shares changed hands over the counter. The counter opened at Rs 2484.85 and touched an intraday high and low of Rs 2484.85 and Rs 2390.0, respectively, during the session so far. The share of Adani Total Gas Ltd. […]]]>
NEW DELHI: Shares of Ltd. traded down 0.14% in Friday trade at 12:07 p.m. (IST). Approximately 5,076 shares changed hands over the counter.

The counter opened at Rs 2484.85 and touched an intraday high and low of Rs 2484.85 and Rs 2390.0, respectively, during the session so far. The share of Adani Total Gas Ltd. quoted a 52-week high of Rs 2,739.95 and a 52-week low of Rs 772.95.

The total market capitalization of Adani Total Gas Ltd. stood at Rs 269,013.55 crore at the time of writing.




Key financial data

The company reported consolidated net sales of Rs 1,022.2 crore for the quarter ended March 31, 2022, up 14.68% from Rs 891.33 crore in the previous quarter and up 69.33% from from Rs 603.66 crore in the prior year quarter.

Net profit for the last quarter stood at Rs 81.09 crore, down 43.58% from the same quarter a year ago.

Ownership model

As of March 31, 2022, DIIs held 0.03% of the company’s capital, while foreign institutional investors held 17.83% and promoters 74.8%.

Valuation coefficient

According to BSE data, the stock was trading at a price-to-earnings multiple of 528.1 and a price-to-book ratio of 97.81. A higher P/E ratio shows that investors are willing to pay a higher price due to better expectations for future growth. The price-to-book ratio indicates the intrinsic value of a company and is the measure of the price that investors are willing to pay even without growth of the company.

Adani Total Gas Ltd. belongs to the gas distribution industry.

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PRF ETF: A Solid Smart Beta Fund, But There Are Cheaper Alternatives https://regiofora.com/prf-etf-a-solid-smart-beta-fund-but-there-are-cheaper-alternatives/ Wed, 01 Jun 2022 16:00:00 +0000 https://regiofora.com/prf-etf-a-solid-smart-beta-fund-but-there-are-cheaper-alternatives/ lakshmiprasad S/iStock via Getty Images Investment thesis The Invesco FTSE RAFI US 1000 ETF (NYSEARC:PRF) is a well-diversified smart beta fund suitable for investors who want a slight bias towards value stocks while maintaining broad market exposure. This article will demonstrate why its fundamentals are compelling, highlighted by a forward price-to-earnings ratio six points lower […]]]>

lakshmiprasad S/iStock via Getty Images

Investment thesis

The Invesco FTSE RAFI US 1000 ETF (NYSEARC:PRF) is a well-diversified smart beta fund suitable for investors who want a slight bias towards value stocks while maintaining broad market exposure. This article will demonstrate why its fundamentals are compelling, highlighted by a forward price-to-earnings ratio six points lower than the S&P 500. However, its high expense ratio of 0.39% means it should not be a core holding in your portfolio. Therefore, I remain neutral on PRF today and will provide you with a list of lower cost alternatives with similar functionality.

Presentation of the ETF

Fundamentals of Strategy and Funds

PRF tracks the FTSE RAFI US 1000 Index, selecting a thousand US-listed companies with the best RAFI fundamentals from across the NYSE and NASDAQ universe. The components are weighted using a set of fundamental factors, including:

  • total cash dividends
  • free movement of capital
  • total sales
  • net book value

Although the universe of stocks is large, it is still primarily a large-cap index due to these criteria. It stands to reason that the largest companies by market capitalization are the most likely to pay the largest cash dividends and generate the most free cash flow and sales. However, I still see it as a cross between a large-cap mix and a large-cap value ETF. The cash dividend screen gives it meager value, as 84% ​​of voters pay a dividend. In other words, for the index to include a non-dividend payer, other fundamentals are likely to be very strong.

I scoured my database of US equity ETFs to find comparators that I believe are reasonable based on current fundamentals. They are:

  1. Schwab Fundamental US Large Company Index ETF (FNDX)
  2. Schwab Fundamental US Broad Market Index ETF (FNDB)
  3. Franklin LibertyQ US Equity ETF (FLQL)

All have lower expense ratios than PRF, as summarized by Morningstar below. I have included the SPDR S&P 500 ETF (SPY) for reference purposes only.

SPY vs. FNDX vs. FNDB vs. FLQL vs. PRF

the morning star

Performance history

PRF has performed well since its launch on December 19, 2005, nearly matching the SPDR S&P 500 Index ETF (TO SPY) Return. Considering how the markets have favored growth for most of these 16+ years and the fact that the FRP expense ratio is 0.30% higher, I think these results are impressive.

PRF vs. SPY performance since inception

Portfolio Viewer

Historically, PRF has been more volatile, characterized by worse Specimens, but stronger and faster recoveries. For example, PRF lost 55.67% during the Great Financial Crisis compared to 50.80% for SPY. However, PRF recovered these losses in 24 months compared to 37 months for SPY. If you’re considering using PRF for downside protection, keep this in mind, as these results suggest it’s not a good idea.

PRF vs. SPY Drawdown Analysis

Portfolio Viewer

Sector exposures and top ten holdings

ETF sector exposures are shown below for each ETF. PRF is well diversified across industries, but so are Schwab’s products. PRF is overweight financials, while FNDX and FNDB are slightly more exposed to technology. FLQL is the outlier, overweighting both the healthcare and technology sectors.

SPY vs. FNDX vs. FNDB vs. FLQL vs. PRF Sector exposures

the morning star

PRF’s top ten holdings are below, led by Berkshire Hathaway (BRK.B). Others include Exxon Mobil (XOM), Apple (AAPL) and AT&T (J). Together, these ten companies only total 17.39%, reflecting the ETF’s strong diversification.

FRP Top Ten Holdings

Invesco

A perhaps more useful way would be to organize the PRF according to its top five holdings in each of its top 20 industries. The table below shows that stocks of diversified banks, integrated oil and gas, pharmaceuticals, electric utilities and integrated telecommunications services are significant holdings.

Top Five Stocks by Industry - PRF

The Sunday Investor

Fundamental analysis

The chart below highlights some fundamental metrics for each of these 20 industries. I’ve also provided summary metrics for the four comparators mentioned earlier, which I hope will help you decide if PRF is right for you.

PRF vs SPY vs FNDX vs FNDB vs FLQL Fundamental Analysis

The Sunday Investor

As noted, PRF is very similar to FNDX and FNDB in most areas, including:

  • Concentration in the top 20 industries: 49.44% versus 52.20% and 50.14%
  • Beta at five years: 1.01 versus 1.02 and 1.04
  • Five-year annualized revenue growth: 7.80% vs. 7.43% and 7.45%
  • Estimated year-on-year revenue growth: 10.39% vs. 11.13% and 11.26%
  • Estimated year-on-year earnings growth: 16.41% vs. 17.37% and 17.53%
  • One-year forward price/earnings ratio: 17.70 vs. 17.21 and 17.32
  • In search of an alpha profitability rating: A- against A- and A-

Given this, I would recommend investors go for the lower-cost Schwab products, which have expense ratios of 0.25%. They also track RAFI indices, so I don’t think PRF fundamentally has a distinct advantage. A 0.14% reduction in annual expenses may not seem like much, but PRF shareholders will lose 5.68% of their total earnings in fees, compared to 3.66% for FNDX and FNDB, assuming a ten-year holding period. and an annual return of 10%. This gap widens as you increase your holding period, so keep this in mind if you plan to own a PRF for an extended period of time.

Compared to SPY, PRF has a nice valuation advantage, with a forward price/earnings ratio six points lower (17.70 vs. 23.53). However, this discount has some merit, given PRF’s lower growth potential. Notice how most of the major FRP industries have estimated single-digit revenue growth for the next year, and they’re also not as profitable as Seeking Alpha’s profitability ratings indicate (A- vs. A) . Additionally, if backtested, PRF’s current portfolio would return 89.41% over the past five years, compared to SPY’s 131.92%. Of course, past performance doesn’t predict future results, but investors seem willing to pay a small premium for good historical performance. Makes sense, but it will be interesting to see if this continues as market dynamics change.

Basically, FLQL looks superior. Its valuation sits roughly in the middle of PRF and SPY and does not give up any upside potential. Its constituents achieve an A+ Seeking Alpha Profitability Grade weighted average, have performed well over the past five years, and even had a slightly better last quarter as measured by revenue surprises. Despite these characteristics, I am not yet ready to return to the technology sector with two feet. While I think there are pockets of opportunity right now, especially in the semiconductor industry, I’m waiting for more evidence of a shift in sentiment.

Investment recommendation

PRF has been a reasonably impressive ETF since its inception in 2005, managing to keep pace with the more growth-oriented S&P 500 index, despite adopting a fundamental approach. I think it will continue to do well since it has a slight lean value and is well diversified. However, I encourage investors to seek out low-fee ETFs with similar characteristics. FNDX and FNDB are a good match in many areas, including concentration, volatility, valuation, and growth, and I think it’s more appropriate for long-term investors. Do not hesitate to read my opinion on FNDX hereand I look forward to answering all of your questions in the comments section below.

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Mohalla Tech’s valuation could exceed $5 billion after raising $300 million https://regiofora.com/mohalla-techs-valuation-could-exceed-5-billion-after-raising-300-million/ Mon, 30 May 2022 16:51:00 +0000 https://regiofora.com/mohalla-techs-valuation-could-exceed-5-billion-after-raising-300-million/ According to people familiar with the matter. The financing increased the company’s valuation to $5 billion from its previous valuation of $3.7 billion. A ShareChat spokesperson declined to comment on the development, and a Google spokesperson said “he doesn’t comment on speculation like this.” According to the sources, the […]]]>

According to people familiar with the matter. The financing increased the company’s valuation to $5 billion from its previous valuation of $3.7 billion.

A ShareChat spokesperson declined to comment on the development, and a Google spokesperson said “he doesn’t comment on speculation like this.”



According to the sources, the funding is expected to help Mohalla Tech build deep capabilities in areas such as social and live commerce, growing its artificial intelligence and machine learning (AI/ML) team, which now has more of 100 people and spread across the United States, Europe and India. Mohalla Tech today has one of the largest AI/ML teams in India working on creating a state-of-the-art recommendation engine. It should further strengthen the company’s position and help it deliver immersive social experiences to our community.

Last December, Mohalla Tech, the parent company behind short-form video platform Moj and regional social network ShareChat, raised $266 million in its Series G. From a valuation of $3.7 billion dollars, the investment was led by Alkeon Capital with participation from new and existing investors including Temasek, Moore Strategic Ventures (MSV), Harbourvest and India Quotient. This is the startup’s third round of funding in 2021. As of July this year, the company’s valuation was $2.9 billion after raising $145 million in its Series F extension.

As of January 2021, the company has over 2000 employees and has added several new features as it focuses on building its products to become the leader in the Indian short video and social media space. With social and live commerce initiatives, the company expects to reach a goal of $100 million in annualized revenue for creators by the end of 2023.

Founded in 2015, Mohalla Tech had raised more than $1.177 billion in eight rounds, including $913 million last year. This has helped Moj and ShareChat continue their growth journey, differentiate themselves and deliver immersive social media experiences. Moj had said it was the number one short video app in India with the highest monthly active user base, with an average usage time of 34 minutes per day, totaling over 4.5 billion views per day.

ShareChat, the Indian-language social media platform, had said it was uniquely positioned with an average usage time of 31 minutes per day. Moj and ShareChat, with a community of 340 million users, plan to create a cohesive AI-powered content ecosystem to meet India’s growing digital needs.

Experts said the opportunity is huge as India is one of the most dynamic and fastest growing internet markets in the world – with around 600 million (mostly mobile) internet users.

This is Google’s second key investment in the short video space in India. He had already supported

VerSe Innovation, the largest local language technology platform in India. In April this year, VerSe raised and signed definitive documents for $805 million in recent funding rounds from renowned global investors, which will bring the company’s valuation to $5 billion. The $805 million investment closely followed a fundraising of more than $650 million from investors including Siguler Guff, Google, Microsoft and Qatar Investment Authority, bringing the total capital raised over the past year to $1.5 billion. VerSe Innovations is the parent company of the Josh short-video platform and the DailyHunt digital media platform.

VerSe Innovation’s proprietary technology platform serves one in two internet users in the country via Josh and Dailyhunt, combined with PublicVibe, the fastest growing hyper-local video platform.

The company said Josh had over 150 million MAUs (monthly active users), the industry’s best DAU to MAU ratio of 49%, and the highest retention. Dailyhunt serves over 350 million users every month, delivering content artifacts in 15 languages ​​every day. PublicVibe serves over 5 million MAUs and 1 million daily active users (DAUs) and has over 6 million downloads on Play Store.

Mohalla Tech’s funding round comes at a time when major investors such as Sequoia and SoftBank have expressed concerns about profitability and could make lower investments.

Sequoia is one of the most active investors in India and has backed top unicorns such as Byju’s, Oyo, Ola, Zomato, Meesho, Car24, Unacademy, BlackBuck, Pine Labs, Freshworks, and Razorpay.

Sequoia Capital has told the founders and CEOs of its companies that the era of rewarding hypergrowth at all costs is rapidly coming to an end, with investors focusing more on companies that can demonstrate current profitability.

Falling valuations, slowing funding cycles and loss of investor confidence have prompted many Indian start-ups to lay off employees in a bid to conserve cash. SoftBank-backed Unacademy could face a funding drought for at least the next 12-18 months and even up to 24 months and will cut costs to get through the lean season, the unicorn’s chief executive says. educational technologies which recently laid off more than 600 employees.

The Mobile Premier League (MPL), a sports fantasy unicorn backed by Sequoia, has reportedly laid off 10% of its team, or 100 employees, and decided to pull out of Indonesia.

Cars24, a leading e-commerce platform for used vehicles, has laid off more than 600 employees. Another edtech unicorn, Vedantu, laid off 424 employees, or around 7% of the company’s workforce. The layoff came days after the company laid off 200 of its contract and full-time employees.

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