Telefonaktiebolaget Price To Earning vs. Cash Per Share
| ERIC-B Stock | SEK 88.68 0.64 0.72% |
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 Cash Per Share vs. Price To Earning 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 earning category among its peers. It also is one of the top stocks in cash per share category among its peers fabricating about 0.74 of Cash Per Share per Price To Earning. The ratio of Price To Earning to Cash Per Share for Telefonaktiebolaget LM Ericsson is roughly 1.35 . 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 Cash Per Share vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Telefonaktiebolaget |
| = | 18.33 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
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.
Telefonaktiebolaget |
| = | 13.56 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.
Telefonaktiebolaget Cash Per Share Comparison
Telefonaktiebolaget is currently under evaluation in cash per share 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 , together with its subsidiaries, provides communication infrastructure, services, and software solutions to the telecom and other sectors. Telefonaktiebolaget LM Ericsson was founded in 1876 and is headquartered in Stockholm, Sweden. Ericsson Telefonab operates under Communication Equipment classification in Sweden and is traded on Stockholm Stock Exchange. It employs 101113 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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Companies producing and distributing toys and different gaming products for kids. The Toys theme has 38 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 Toys Theme or any other thematic opportunities.
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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.