Graphic Packaging Current Valuation vs. Return On Asset

4W8 Stock  EUR 28.19  0.38  1.33%   
Considering the key profitability indicators obtained from Graphic Packaging's historical financial statements, Graphic Packaging Holding may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Graphic Packaging's ability to earn profits and add value for shareholders.
For Graphic Packaging profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Graphic Packaging to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Graphic Packaging Holding utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Graphic Packaging's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Graphic Packaging Holding over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Graphic Packaging's value and its price as these two are different measures arrived at by different means. Investors typically determine if Graphic Packaging is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Graphic Packaging'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.

Graphic Packaging Holding Return On Asset vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Graphic Packaging's current stock value. Our valuation model uses many indicators to compare Graphic Packaging value to that of its competitors to determine the firm's financial worth.
Graphic Packaging Holding is the top company in current valuation category among its peers. It also is number one stock in return on asset category among its peers . The ratio of Current Valuation to Return On Asset for Graphic Packaging Holding is about  182,280,898,927 . 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 Graphic Packaging's earnings, one of the primary drivers of an investment's value.

Graphic Current Valuation vs. Competition

Graphic Packaging Holding is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Packaging & Containers industry is presently estimated at about 49.03 Billion. Graphic Packaging totals roughly 11.56 Billion in current valuation claiming about 24% of equities listed under Packaging & Containers industry.

Graphic Return On Asset vs. Current Valuation

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.

Graphic Packaging

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
11.56 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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Graphic Packaging

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0634
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Graphic Return On Asset Comparison

Graphic Packaging is currently under evaluation in return on asset category among its peers.

Graphic Packaging Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Graphic Packaging, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Graphic Packaging will eventually generate negative long term returns. The profitability progress is the general direction of Graphic Packaging's change in net profit over the period of time. It can combine multiple indicators of Graphic Packaging, 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.
Graphic Packaging Holding Company, together with its subsidiaries, provides paper-based packaging solutions to food, beverage, foodservice, and other consumer products companies. Graphic Packaging Holding Company was founded in 1992 and is headquartered in Atlanta, Georgia. GRAPHIC PACK operates under Packaging Containers classification in Germany and is traded on Frankfurt Stock Exchange. It employs 18000 people.

Graphic Profitability Driver Comparison

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

Use Graphic Packaging 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 Graphic Packaging 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 Graphic Packaging will appreciate offsetting losses from the drop in the long position's value.

Graphic Packaging Pair Trading

Graphic Packaging Holding Pair Trading Analysis

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

In addition to having Graphic Packaging 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?

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Military Industrial
Military Industrial Theme
A collection of large United States defense contractors including companies involved in production or distribution of aircraft, ships, vehicles, weaponry, and electronic systems in cooperation with the government. The Military Industrial 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 Military Industrial Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Graphic Stock

When determining whether Graphic Packaging Holding is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Graphic Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Graphic Packaging Holding Stock. Highlighted below are key reports to facilitate an investment decision about Graphic Packaging Holding Stock:
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You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
To fully project Graphic Packaging's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Graphic Packaging Holding 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 Graphic Packaging's income statement, its balance sheet, and the statement of cash flows.
Potential Graphic Packaging investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Graphic Packaging investors may work on each financial statement separately, they are all related. The changes in Graphic Packaging's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Graphic Packaging'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.