Coloplast A/S Price To Earnings To Growth vs. Return On Equity
| CBHD Stock | 118.20 3.20 2.64% |
For Coloplast A/S profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Coloplast A/S to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Coloplast AS utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Coloplast A/S's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Coloplast AS over time as well as its relative position and ranking within its peers.
Coloplast |
Coloplast A/S Return On Equity vs. Price To Earnings To Growth Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Coloplast A/S's current stock value. Our valuation model uses many indicators to compare Coloplast A/S value to that of its competitors to determine the firm's financial worth. Coloplast AS is number one stock in price to earnings to growth category among its peers. It also is number one stock in return on equity category among its peers reporting about 24.79 of Return On Equity per Price To Earnings To Growth. 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 Coloplast A/S's earnings, one of the primary drivers of an investment's value.Coloplast Return On Equity vs. Price To Earnings To Growth
PEG Ratio indicates the potential value of an equity instrument and is calculated by dividing Price to Earnings (P/E) ratio into earnings growth rate. Most analysts and investors prefer this measure to a Price to Earnings (P/E) ratio because it incorporates the future growth of a firm. The low PEG ratio usually implies that an equity instrument is undervalued; whereas PEG of 1 may indicate that an equity is reasonably priced under given expectations of future growth.
Coloplast A/S |
| = | 3.24 X |
Generally speaking, PEG ratio is a 'quick and dirty' way to measure how the current price of a firm's stock relates to its earnings and growth rate. The main benefit of using PEG ratio is that investors can compare the relative valuations of companies within different industries without analyzing their P/E ratios.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Coloplast A/S |
| = | 80.33 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Coloplast Return On Equity Comparison
Coloplast is currently under evaluation in return on equity category among its peers.
Coloplast Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Coloplast A/S. 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 Coloplast A/S 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 Coloplast A/S's important profitability drivers and their relationship over time.
Use Coloplast A/S 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 Coloplast A/S 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 Coloplast A/S will appreciate offsetting losses from the drop in the long position's value.Coloplast A/S Pair Trading
Coloplast AS Pair Trading Analysis
The ability to find closely correlated positions to Coloplast A/S could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Coloplast A/S 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 Coloplast A/S - 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 Coloplast AS to buy it.
The correlation of Coloplast A/S 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 Coloplast A/S moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Coloplast A/S 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 Coloplast A/S 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 Coloplast A/S position
In addition to having Coloplast A/S 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
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.
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Other Information on Investing in Coloplast Stock
To fully project Coloplast A/S's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Coloplast A/S 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 Coloplast A/S's income statement, its balance sheet, and the statement of cash flows.