BASF SE Cash Per Share vs. Cash And Equivalents
| BAS Stock | EUR 42.10 0.50 1.17% |
For BASF SE profitability analysis, we use financial ratios and fundamental drivers that measure the ability of BASF SE to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well BASF SE utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between BASF SE's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of BASF SE over time as well as its relative position and ranking within its peers.
BASF |
BASF SE Cash And Equivalents vs. Cash Per Share Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining BASF SE's current stock value. Our valuation model uses many indicators to compare BASF SE value to that of its competitors to determine the firm's financial worth. BASF SE is number one stock in cash per share category among its peers. It also is number one stock in cash and equivalents category among its peers creating about 915,254,237 of Cash And Equivalents per Cash Per Share. 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 BASF SE's earnings, one of the primary drivers of an investment's value.BASF Cash And Equivalents vs. Cash Per Share
Cash per Share is a ratio of current cash on hands or in the banks of the company to a total number of shares outstanding. It is used to determine a firm's liquidity and is a good indicator of the overall financial health of a company. Value investors often compare this ratio to the current stock quote, and if it exceeds the stock price they would invest in it.
BASF SE |
| = | 2.36 X |
Companies with high Cash per Share ratio will be considered as an attractive investment by most investors. In most industries if you can single out an equity instrument trading below its cash per share value, you have a bargain and should consider buying it. Finding the stocks traded below their cash value, therefore, can be a good starting point for investors using strategies based on fundamentals.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
BASF SE |
| = | 2.16 B |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
BASF Cash And Equivalents Comparison
BASF SE is currently under evaluation in cash and equivalents category among its peers.
BASF SE Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in BASF SE, profitability is also one of the essential criteria for including it into their portfolios because, without profit, BASF SE will eventually generate negative long term returns. The profitability progress is the general direction of BASF SE's change in net profit over the period of time. It can combine multiple indicators of BASF SE, 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.
It operates through six segments Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition Care, and Agricultural Solutions. BASF SE was founded in 1865 and is headquartered in Ludwigshafen am Rhein, Germany. BASF SE is traded on Frankfurt Stock Exchange in Germany.
BASF Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on BASF SE. 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 BASF SE 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 BASF SE's important profitability drivers and their relationship over time.
Use BASF SE 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 BASF SE 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 BASF SE will appreciate offsetting losses from the drop in the long position's value.BASF SE Pair Trading
BASF SE Pair Trading Analysis
The ability to find closely correlated positions to BASF SE could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace BASF SE 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 BASF SE - 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 BASF SE to buy it.
The correlation of BASF SE 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 BASF SE moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if BASF SE 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 BASF SE 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 BASF SE position
In addition to having BASF SE 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 Adviser Favorites Thematic Idea Now
Adviser Favorites
Financial advisors frequently recommend that individuals diversify their investment portfolios with a mix of different types of stocks. These can include blue-chip stocks, growth stocks, and dividend stocks. The Adviser Favorites theme has 17 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 Adviser Favorites Theme or any other thematic opportunities.
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Other Information on Investing in BASF Stock
To fully project BASF SE's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of BASF SE 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 BASF SE's income statement, its balance sheet, and the statement of cash flows.