Greif EBITDA vs. Price To Earning

GEF-B Stock  USD 75.74  0.58  0.77%   
Considering the key profitability indicators obtained from Greif's historical financial statements, Greif Inc may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in January. Profitability indicators assess Greif's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
948.2 M
Current Value
995.6 M
Quarterly Volatility
252.6 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, Greif's Price To Sales Ratio is projected to increase slightly based on the last few years of reporting. The current year's Sales General And Administrative To Revenue is expected to grow to 0.12, whereas Days Sales Outstanding is forecasted to decline to 51.96. At present, Greif's Operating Income is projected to increase significantly based on the last few years of reporting. The current year's Income Before Tax is expected to grow to about 597.4 M, whereas Accumulated Other Comprehensive Income is forecasted to decline to (299.1 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.220.25
Fairly Down
Slightly volatile
Net Profit Margin0.04950.0792
Way Down
Slightly volatile
Operating Profit Margin0.06380.1
Way Down
Slightly volatile
Pretax Profit Margin0.07160.11
Way Down
Slightly volatile
Return On Assets0.0550.0693
Significantly Down
Slightly volatile
Return On Equity0.0960.17
Way Down
Slightly volatile
For Greif profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Greif to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Greif Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Greif's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Greif Inc 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 Greif's value and its price as these two are different measures arrived at by different means. Investors typically determine if Greif is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Greif'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.

Greif Inc Price To Earning vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Greif's current stock value. Our valuation model uses many indicators to compare Greif value to that of its competitors to determine the firm's financial worth.
Greif Inc is rated below average in ebitda category among its peers. It is rated below average in price to earning category among its peers . The ratio of EBITDA to Price To Earning for Greif Inc is about  59,876,543 . At present, Greif's EBITDA is projected to increase significantly based on the last few years of reporting. 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 Greif's earnings, one of the primary drivers of an investment's value.

Greif Price To Earning vs. EBITDA

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.

Greif

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
824.5 M
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.
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.

Greif

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
13.77 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.

Greif Price To Earning Comparison

Greif is currently under evaluation in price to earning category among its peers.

Greif Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Greif, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Greif will eventually generate negative long term returns. The profitability progress is the general direction of Greif's change in net profit over the period of time. It can combine multiple indicators of Greif, 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-284.9 M-299.1 M
Operating Income696.3 M731.1 M
Income Before Tax568.9 M597.4 M
Total Other Income Expense Net-99.7 M-94.7 M
Net Income436 M457.8 M
Income Tax Expense135.5 M142.2 M
Net Income From Continuing Ops436 M219.2 M
Non Operating Income Net Other-26 M-24.7 M
Net Income Applicable To Common Shares413.1 M212 M
Net Interest Income-86.7 M-91 M
Change To Netincome1.6 M1.5 M
Net Income Per Share 5.59  5.87 
Income Quality 1.97  2.77 
Net Income Per E B T 0.84  0.76 

Greif Profitability Driver Comparison

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

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Other Information on Investing in Greif Stock

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