Geberit AG Return On Equity vs. Price To Sales
| GEBN Stock | 526.80 10.20 1.97% |
For Geberit AG profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Geberit AG to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Geberit AG utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Geberit AG's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Geberit AG over time as well as its relative position and ranking within its peers.
Geberit |
Geberit AG Price To Sales vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Geberit AG's current stock value. Our valuation model uses many indicators to compare Geberit AG value to that of its competitors to determine the firm's financial worth. Geberit AG is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in price to sales category among its peers fabricating about 10.80 of Price To Sales per Return On Equity. 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 Geberit AG's earnings, one of the primary drivers of an investment's value.Geberit Price To Sales vs. Return On Equity
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.
Geberit AG |
| = | 0.4 |
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.
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.
Geberit AG |
| = | 4.37 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.
Geberit Price To Sales Comparison
Geberit AG is currently under evaluation in price to sales category among its peers.
Geberit Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Geberit AG. 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 Geberit AG 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 Geberit AG's important profitability drivers and their relationship over time.
Use Geberit AG 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 Geberit AG 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 Geberit AG will appreciate offsetting losses from the drop in the long position's value.Geberit AG Pair Trading
Geberit AG Pair Trading Analysis
The ability to find closely correlated positions to Geberit AG could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Geberit AG 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 Geberit AG - 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 Geberit AG to buy it.
The correlation of Geberit AG 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 Geberit AG moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Geberit AG 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 Geberit AG 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 Geberit AG position
In addition to having Geberit AG 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 Tools for Geberit Stock Analysis
When running Geberit AG's price analysis, check to measure Geberit AG's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Geberit AG is operating at the current time. Most of Geberit AG's value examination focuses on studying past and present price action to predict the probability of Geberit AG's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Geberit AG's price. Additionally, you may evaluate how the addition of Geberit AG to your portfolios can decrease your overall portfolio volatility.