Graphic Packaging EBITDA vs. Current Valuation
4W8 Stock | EUR 28.19 0.38 1.33% |
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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Graphic Packaging Holding Current Valuation vs. EBITDA 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 number one stock in ebitda category among its peers. It also is the top company in current valuation category among its peers reporting about 7.88 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 Graphic Packaging's earnings, one of the primary drivers of an investment's value.Graphic 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.
Graphic Packaging |
| = | 1.47 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.
Graphic Packaging |
| = | 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.
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 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.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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Baby Boomer Prospects
Equities with large market capitalization that account for significant contribution to overall economic growth especially within dividend-paying instruments and stocks from healthcare and financial sectors. The Baby Boomer Prospects theme has 99 constituents at this time.
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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:Check out Trending Equities. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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.