Xiaomi EBITDA vs. Current Valuation
| 3CP Stock | EUR 3.37 0.05 1.46% |
For Xiaomi profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Xiaomi to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Xiaomi utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Xiaomi's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Xiaomi over time as well as its relative position and ranking within its peers.
Xiaomi |
Xiaomi Current Valuation vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Xiaomi's current stock value. Our valuation model uses many indicators to compare Xiaomi value to that of its competitors to determine the firm's financial worth. Xiaomi is number one stock in ebitda category among its peers. It also is the top company in current valuation category among its peers reporting about 1.04 of Current Valuation per EBITDA. 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 Xiaomi's earnings, one of the primary drivers of an investment's value.Xiaomi Current Valuation 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.
Xiaomi |
| = | 27.26 B |
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.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Xiaomi |
| = | 28.47 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Xiaomi Current Valuation vs Competition
Xiaomi is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Consumer Electronics industry is presently estimated at about 489.27 Billion. Xiaomi holds roughly 28.47 Billion in current valuation claiming about 6% of stocks in Consumer Electronics industry.
Xiaomi Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Xiaomi, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Xiaomi will eventually generate negative long term returns. The profitability progress is the general direction of Xiaomi's change in net profit over the period of time. It can combine multiple indicators of Xiaomi, 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.
Xiaomi Corporation, an investment holding company, provides hardware, software, and internet services in Mainland China, India, Europe, and internationally. Xiaomi Corporation was incorporated in 2010 and is headquartered in Beijing, the Peoples Republic of China. XIAOMI CORP is traded on Frankfurt Stock Exchange in Germany.
Xiaomi Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Xiaomi. 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 Xiaomi 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 Xiaomi's important profitability drivers and their relationship over time.
Use Xiaomi 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 Xiaomi 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 Xiaomi will appreciate offsetting losses from the drop in the long position's value.Xiaomi Pair Trading
Xiaomi Pair Trading Analysis
The ability to find closely correlated positions to Xiaomi could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Xiaomi 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 Xiaomi - 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 Xiaomi to buy it.
The correlation of Xiaomi 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 Xiaomi moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Xiaomi 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 Xiaomi 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 Xiaomi position
In addition to having Xiaomi 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 Beers Thematic Idea Now
Beers
Companies involved in production and distribution of domestic and international beer. The Beers theme has 46 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 Beers Theme or any other thematic opportunities.
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Other Information on Investing in Xiaomi Stock
To fully project Xiaomi's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Xiaomi 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 Xiaomi's income statement, its balance sheet, and the statement of cash flows.