Agilent Technologies EBITDA vs. Price To Earning

A Stock  USD 133.84  1.78  1.35%   
Based on Agilent Technologies' profitability indicators, Agilent Technologies' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Agilent Technologies' ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
1.9 B
Current Value
981.5 M
Quarterly Volatility
376.4 M
 
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Covid
At present, Agilent Technologies' Sales General And Administrative To Revenue is projected to increase slightly based on the last few years of reporting. The current year's Operating Cash Flow Sales Ratio is expected to grow to 0.25, whereas Price To Sales Ratio is forecasted to decline to 2.12. At present, Agilent Technologies' Operating Income is projected to increase significantly based on the last few years of reporting. The current year's Income Before Tax is expected to grow to about 1.6 B, whereas Accumulated Other Comprehensive Income is forecasted to decline to (309 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.40.46
Fairly Down
Slightly volatile
Net Profit Margin0.170.16
Notably Up
Slightly volatile
Operating Profit Margin0.190.18
Notably Up
Slightly volatile
Pretax Profit Margin0.190.18
Notably Up
Slightly volatile
Return On Assets0.0520.1
Way Down
Slightly volatile
Return On Equity0.10.19
Way Down
Slightly volatile
For Agilent Technologies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Agilent Technologies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Agilent Technologies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Agilent Technologies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Agilent Technologies over time as well as its relative position and ranking within its peers.
  

Agilent Technologies' Revenue Breakdown by Earning Segment

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Is Life Sciences Tools & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Agilent Technologies. If investors know Agilent will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Agilent Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.569
Dividend Share
0.933
Earnings Share
4.81
Revenue Per Share
22.269
Quarterly Revenue Growth
(0.06)
The market value of Agilent Technologies is measured differently than its book value, which is the value of Agilent that is recorded on the company's balance sheet. Investors also form their own opinion of Agilent Technologies' value that differs from its market value or its book value, called intrinsic value, which is Agilent Technologies' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Agilent Technologies' market value can be influenced by many factors that don't directly affect Agilent Technologies' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Agilent Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if Agilent Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Agilent Technologies' 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.

Agilent Technologies Price To Earning vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Agilent Technologies's current stock value. Our valuation model uses many indicators to compare Agilent Technologies value to that of its competitors to determine the firm's financial worth.
Agilent Technologies is rated third in ebitda category among its peers. It is rated fifth in price to earning category among its peers . The ratio of EBITDA to Price To Earning for Agilent Technologies is about  44,660,453 . At present, Agilent Technologies' EBITDA is projected to increase significantly based on the last few years of reporting. 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 Agilent Technologies' earnings, one of the primary drivers of an investment's value.

Agilent Technologies' Earnings Breakdown by Geography

Agilent Price To Earning 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.

Agilent Technologies

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
1.68 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.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Agilent Technologies

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
37.55 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Agilent Price To Earning Comparison

Agilent Technologies is currently under evaluation in price to earning category among its peers.

Agilent Technologies Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Agilent Technologies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Agilent Technologies will eventually generate negative long term returns. The profitability progress is the general direction of Agilent Technologies' change in net profit over the period of time. It can combine multiple indicators of Agilent 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-294.3 M-309 M
Operating Income1.6 B1.6 B
Income Before Tax1.5 B1.6 B
Total Other Income Expense Net-9.9 M-9.4 M
Net Income1.4 B1.5 B
Income Tax Expense89.1 M106.6 M
Net Income Applicable To Common Shares1.4 B807.6 M
Net Income From Continuing Ops1.4 B838.9 M
Non Operating Income Net Other-27 M-25.6 M
Interest Income45.9 M41.2 M
Net Interest Income-39.6 M-41.6 M
Change To Netincome433.6 M455.2 M
Net Income Per Share 3.80  3.99 
Income Quality 1.29  1.35 
Net Income Per E B T 1.06  0.94 

Agilent Profitability Driver Comparison

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

Use Agilent 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 Agilent 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 Agilent Technologies will appreciate offsetting losses from the drop in the long position's value.

Agilent Technologies Pair Trading

Agilent Technologies Pair Trading Analysis

The ability to find closely correlated positions to Agilent 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 Agilent 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 Agilent 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 Agilent Technologies to buy it.
The correlation of Agilent 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 Agilent Technologies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Agilent 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 Agilent 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Agilent Technologies position

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To fully project Agilent Technologies' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Agilent 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 Agilent Technologies' income statement, its balance sheet, and the statement of cash flows.
Potential Agilent Technologies investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Agilent Technologies investors may work on each financial statement separately, they are all related. The changes in Agilent Technologies's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Agilent Technologies'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.