Should Weakness in Ambev S.A.’s (BVMF:ABEV3) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
Ambev (BVMF:ABEV3) has had a rough three months with its share price down 14%. However, stock prices are usually driven by a company’s financials over the long term, which in this case look pretty respectable. Specifically, we decided to study Ambev’s ROE in this article.
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
How Is ROE Calculated?
The formula for return on equity is:
Return on Equity = Net Profit…
