DTE Energy Net Income vs. EBITDA
| DTB Stock | USD 19.51 0.09 0.46% |
For DTE Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of DTE Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well DTE Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between DTE Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of DTE Energy over time as well as its relative position and ranking within its peers.
DTE |
Is Utilities 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 DTE Energy. If investors know DTE 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 DTE Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of DTE Energy is measured differently than its book value, which is the value of DTE that is recorded on the company's balance sheet. Investors also form their own opinion of DTE Energy's value that differs from its market value or its book value, called intrinsic value, which is DTE Energy's 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 DTE Energy's market value can be influenced by many factors that don't directly affect DTE Energy's 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 DTE Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if DTE Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DTE Energy'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.
DTE Energy EBITDA vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining DTE Energy's current stock value. Our valuation model uses many indicators to compare DTE Energy value to that of its competitors to determine the firm's financial worth. DTE Energy is rated # 4 in net income category among its peers. It is rated # 5 in ebitda category among its peers totaling about 2.42 of EBITDA per Net Income. 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 DTE Energy's earnings, one of the primary drivers of an investment's value.DTE EBITDA 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.
DTE Energy |
| = | 1.4 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.
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.
DTE Energy |
| = | 3.38 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.
DTE EBITDA Comparison
DTE Energy is currently under evaluation in ebitda category among its peers.
DTE Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on DTE Energy. 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 DTE Energy 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 DTE Energy's important profitability drivers and their relationship over time.
Use DTE Energy 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 DTE Energy 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 DTE Energy will appreciate offsetting losses from the drop in the long position's value.DTE Energy Pair Trading
DTE Energy Pair Trading Analysis
The ability to find closely correlated positions to DTE Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace DTE Energy 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 DTE Energy - 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 DTE Energy to buy it.
The correlation of DTE Energy 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 DTE Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if DTE Energy 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 DTE Energy 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 DTE Energy position
In addition to having DTE Energy 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 Large Cap ETFs Thematic Idea Now
Large Cap ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Large Cap ETFs theme has 678 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 Large Cap ETFs Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Investing Opportunities. For information on how to trade DTE Stock refer to our How to Trade DTE Stock guide.You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
To fully project DTE Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of DTE Energy 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 DTE Energy's income statement, its balance sheet, and the statement of cash flows.