Essity AB Price To Sales vs. Price To Book

ESSITY-A  SEK 304.50  3.50  1.16%   
Based on the measurements of profitability obtained from Essity AB's financial statements, Essity AB may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in December. Profitability indicators assess Essity AB's ability to earn profits and add value for shareholders.
For Essity AB profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Essity AB to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Essity AB utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Essity AB's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Essity AB 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 Essity AB's value and its price as these two are different measures arrived at by different means. Investors typically determine if Essity AB is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Essity AB'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.

Essity AB Price To Book vs. Price To Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Essity AB's current stock value. Our valuation model uses many indicators to compare Essity AB value to that of its competitors to determine the firm's financial worth.
Essity AB is one of the top stocks in price to sales category among its peers. It also is one of the top stocks in price to book category among its peers fabricating about  2.02  of Price To Book per Price To Sales. Comparative valuation analysis is a catch-all model that can be used if you cannot value Essity AB by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Essity AB'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.

Essity Price To Book vs. Price To Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Essity AB

P/S

 = 

MV Per Share

Revenue Per Share

 = 
1.26 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
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.

Essity AB

P/B

 = 

MV Per Share

BV Per Share

 = 
2.55 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.

Essity Price To Book Comparison

Essity AB is currently under evaluation in price to book category among its peers.

Essity AB Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Essity AB, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Essity AB will eventually generate negative long term returns. The profitability progress is the general direction of Essity AB's change in net profit over the period of time. It can combine multiple indicators of Essity AB, 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.
Essity AB develops, produces, and sells personal care, consumer tissue, and professional hygiene products and solutions worldwide. Essity AB was founded in 1849 and is headquartered in Stockholm, Sweden. Essity AB operates under Household Personal Products classification in Sweden and is traded on Stockholm Stock Exchange. It employs 47000 people.

Essity Profitability Driver Comparison

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

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Our tools can tell you how much better you can do entering a position in Essity AB without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Use Investing Themes to Complement your Essity AB position

In addition to having Essity AB 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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Asset Management Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Asset Management theme has 7 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 Asset Management Theme or any other thematic opportunities.
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Other Information on Investing in Essity Stock

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