SolarEdge Technologies EBITDA vs. Price To Sales
| 2ED Stock | EUR 15.23 0.51 3.46% |
For SolarEdge Technologies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of SolarEdge Technologies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well SolarEdge Technologies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between SolarEdge Technologies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of SolarEdge Technologies over time as well as its relative position and ranking within its peers.
SolarEdge |
SolarEdge Technologies Price To Sales vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining SolarEdge Technologies's current stock value. Our valuation model uses many indicators to compare SolarEdge Technologies value to that of its competitors to determine the firm's financial worth. SolarEdge Technologies is number one stock in ebitda category among its peers. It also is number one stock in price to sales category among its peers . The ratio of EBITDA to Price To Sales for SolarEdge Technologies is about 38,418,542 . 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 SolarEdge Technologies' earnings, one of the primary drivers of an investment's value.SolarEdge Price To Sales vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
SolarEdge Technologies |
| = | 236.78 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
SolarEdge Technologies |
| = | 6.16 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
SolarEdge Price To Sales Comparison
SolarEdge Technologies is currently under evaluation in price to sales category among its peers.
SolarEdge Technologies Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in SolarEdge Technologies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, SolarEdge Technologies will eventually generate negative long term returns. The profitability progress is the general direction of SolarEdge Technologies' change in net profit over the period of time. It can combine multiple indicators of SolarEdge Technologies, 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.
SolarEdge Technologies, Inc., together with its subsidiaries, designs, develops, and sells direct current optimized inverter systems for solar photovoltaic installations worldwide. SolarEdge Technologies, Inc. was founded in 2006 and is headquartered in Herzliya, Israel. SOLAREDGE TECHN operates under Solar classification in Germany and is traded on Frankfurt Stock Exchange. It employs 1737 people.
SolarEdge Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on SolarEdge Technologies. 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 SolarEdge Technologies 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 SolarEdge Technologies' important profitability drivers and their relationship over time.
Use SolarEdge Technologies 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 SolarEdge Technologies 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 SolarEdge Technologies will appreciate offsetting losses from the drop in the long position's value.SolarEdge Technologies Pair Trading
SolarEdge Technologies Pair Trading Analysis
The ability to find closely correlated positions to SolarEdge Technologies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace SolarEdge Technologies 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 SolarEdge Technologies - 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 SolarEdge Technologies to buy it.
The correlation of SolarEdge Technologies is a statistical measure of how it moves in relation to other instruments. 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 SolarEdge Technologies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if SolarEdge Technologies 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 SolarEdge Technologies 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.Use Investing Themes to Complement your SolarEdge Technologies position
In addition to having SolarEdge Technologies 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 Insurance Thematic Idea Now
Insurance
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Insurance theme has 61 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 Insurance Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Information and Resources on Investing in SolarEdge Stock
When determining whether SolarEdge Technologies is a strong investment it is important to analyze SolarEdge Technologies' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact SolarEdge Technologies' future performance. For an informed investment choice regarding SolarEdge Stock, refer to the following important reports:Check out Trending Equities. For more detail on how to invest in SolarEdge Stock please use our How to Invest in SolarEdge Technologies guide.You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
To fully project SolarEdge Technologies' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of SolarEdge Technologies 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 SolarEdge Technologies' income statement, its balance sheet, and the statement of cash flows.