Carlsberg Net Income vs. Current Valuation

CBGA Stock  EUR 115.50  0.50  0.43%   
Considering the key profitability indicators obtained from Carlsberg's historical financial statements, Carlsberg AS 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 Carlsberg's ability to earn profits and add value for shareholders.
For Carlsberg profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Carlsberg to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Carlsberg AS utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Carlsberg's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Carlsberg AS 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 Carlsberg's value and its price as these two are different measures arrived at by different means. Investors typically determine if Carlsberg is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Carlsberg'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.

Carlsberg AS Current Valuation vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Carlsberg's current stock value. Our valuation model uses many indicators to compare Carlsberg value to that of its competitors to determine the firm's financial worth.
Carlsberg AS is number one stock in net income category among its peers. It also is the top company in current valuation category among its peers . 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 Carlsberg's earnings, one of the primary drivers of an investment's value.

Carlsberg Current Valuation vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Carlsberg

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
(1.06 B)
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.

Carlsberg

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
20.83 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.

Carlsberg Current Valuation vs Competition

Carlsberg AS is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Beverages - Brewers industry is currently estimated at about 77.58 Billion. Carlsberg totals roughly 20.83 Billion in current valuation claiming about 27% of stocks in Beverages - Brewers industry.

Carlsberg Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Carlsberg, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Carlsberg will eventually generate negative long term returns. The profitability progress is the general direction of Carlsberg's change in net profit over the period of time. It can combine multiple indicators of Carlsberg, 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.
Carlsberg AS produces and sells beer and other beverage products in Western Europe, Eastern Europe, and Asia. The company was founded in 1847 and is based in Copenhagen, Denmark. CARLSBERG operates under Beverages - Brewers classification in Germany and is traded on Frankfurt Stock Exchange. It employs 40000 people.

Carlsberg Profitability Driver Comparison

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

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

Carlsberg Pair Trading

Carlsberg AS Pair Trading Analysis

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

In addition to having Carlsberg 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.

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Currency Funds
Currency Funds Theme
Funds or Etfs investing in a single currency or combination of currencies from different countries in order to replicate respective foreign exchange markets. The Currency Funds theme has 43 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 Currency Funds Theme or any other thematic opportunities.
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Other Information on Investing in Carlsberg Stock

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