Telefonaktiebolaget Price To Book vs. Net Income
| ERIBR Stock | EUR 7.87 0.01 0.13% |
For Telefonaktiebolaget profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Telefonaktiebolaget to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Telefonaktiebolaget LM Ericsson utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Telefonaktiebolaget's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Telefonaktiebolaget LM Ericsson over time as well as its relative position and ranking within its peers.
Telefonaktiebolaget |
Telefonaktiebolaget Net Income vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Telefonaktiebolaget's current stock value. Our valuation model uses many indicators to compare Telefonaktiebolaget value to that of its competitors to determine the firm's financial worth. Telefonaktiebolaget LM Ericsson is one of the top stocks in price to book category among its peers. It also is one of the top stocks in net income category among its peers making up about 11,573,742,119 of Net Income per Price To Book. Comparative valuation analysis is a catch-all model that can be used if you cannot value Telefonaktiebolaget by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Telefonaktiebolaget's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Telefonaktiebolaget Net Income vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Telefonaktiebolaget |
| = | 1.62 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
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.
Telefonaktiebolaget |
| = | 18.72 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.
Telefonaktiebolaget Net Income Comparison
Telefonaktiebolaget is currently under evaluation in net income category among its peers.
Telefonaktiebolaget Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Telefonaktiebolaget, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Telefonaktiebolaget will eventually generate negative long term returns. The profitability progress is the general direction of Telefonaktiebolaget's change in net profit over the period of time. It can combine multiple indicators of Telefonaktiebolaget, 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.
Telefonaktiebolaget LM Ericsson provides information and communications technology solutions for service providers. The company was founded in 1876 and is headquartered in Stockholm, Sweden. Ericsson Telefonab operates under Communication Equipment classification in Finland and is traded on Helsinki Exchange. It employs 94756 people.
Telefonaktiebolaget Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Telefonaktiebolaget. 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 Telefonaktiebolaget 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 Telefonaktiebolaget's important profitability drivers and their relationship over time.
Use Telefonaktiebolaget 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 Telefonaktiebolaget 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 Telefonaktiebolaget will appreciate offsetting losses from the drop in the long position's value.Telefonaktiebolaget Pair Trading
Telefonaktiebolaget LM Ericsson Pair Trading Analysis
The ability to find closely correlated positions to Telefonaktiebolaget could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Telefonaktiebolaget 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 Telefonaktiebolaget - 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 Telefonaktiebolaget LM Ericsson to buy it.
The correlation of Telefonaktiebolaget 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 Telefonaktiebolaget moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Telefonaktiebolaget 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 Telefonaktiebolaget 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 Telefonaktiebolaget position
In addition to having Telefonaktiebolaget 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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Additional Information and Resources on Investing in Telefonaktiebolaget Stock
When determining whether Telefonaktiebolaget offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Telefonaktiebolaget's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Telefonaktiebolaget Lm Ericsson Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Telefonaktiebolaget Lm Ericsson Stock:Check out Investing Opportunities. 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 Telefonaktiebolaget's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Telefonaktiebolaget 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 Telefonaktiebolaget's income statement, its balance sheet, and the statement of cash flows.