Guess Price To Sales vs. Return On Equity
| GES Stock | USD 16.46 0.07 0.43% |
For Guess profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Guess to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Guess Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Guess's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Guess Inc over time as well as its relative position and ranking within its peers.
Guess |
Is Specialty Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Guess. If investors know Guess will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Guess listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Guess Inc is measured differently than its book value, which is the value of Guess that is recorded on the company's balance sheet. Investors also form their own opinion of Guess' value that differs from its market value or its book value, called intrinsic value, which is Guess' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Guess' market value can be influenced by many factors that don't directly affect Guess' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Guess' value and its price as these two are different measures arrived at by different means. Investors typically determine if Guess is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Guess' 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.
Guess Inc Return On Equity vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Guess's current stock value. Our valuation model uses many indicators to compare Guess value to that of its competitors to determine the firm's financial worth. Guess Inc is rated below average in price to sales category among its peers. It is rated # 5 in return on equity category among its peers reporting about 1.19 of Return On Equity per Price To Sales. Comparative valuation analysis is a catch-all technique that is used if you cannot value Guess by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Guess Return On Equity 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.
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| = | 0.29 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.
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.
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| = | 0.35 |
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.
Guess Return On Equity Comparison
Guess is currently under evaluation in return on equity category among its peers.
Guess Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Guess, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Guess will eventually generate negative long term returns. The profitability progress is the general direction of Guess' change in net profit over the period of time. It can combine multiple indicators of Guess, 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.
, Inc. designs, markets, distributes, and licenses lifestyle collections of apparel and accessories for men, women, and children. , Inc. was founded in 1981 and is headquartered in Los Angeles, California. Guess operates under Apparel Retail classification in the United States and is traded on New York Stock Exchange. It employs 12500 people.
Guess Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Guess. 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 Guess 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 Guess' important profitability drivers and their relationship over time.
Use Guess 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 Guess 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 Guess will appreciate offsetting losses from the drop in the long position's value.Guess Pair Trading
Guess Inc Pair Trading Analysis
The ability to find closely correlated positions to Guess could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Guess 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 Guess - 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 Guess Inc to buy it.
The correlation of Guess 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 Guess moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Guess Inc 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 Guess 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 Guess position
In addition to having Guess 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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Cash Cows
Entities with stable and reliable earnings or profits, which allows them to pay consistent dividends to their shareholders. The Cash Cows theme has 25 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 Cash Cows Theme or any other thematic opportunities.
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Additional Tools for Guess Stock Analysis
When running Guess' price analysis, check to measure Guess' 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 Guess is operating at the current time. Most of Guess' value examination focuses on studying past and present price action to predict the probability of Guess' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Guess' price. Additionally, you may evaluate how the addition of Guess to your portfolios can decrease your overall portfolio volatility.