Henkel AG Price To Earning vs. Current Valuation
| HELKF Stock | USD 76.19 2.19 2.96% |
For Henkel AG profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Henkel AG to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Henkel AG Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Henkel AG's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Henkel AG Co over time as well as its relative position and ranking within its peers.
Henkel |
Henkel AG Current Valuation vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Henkel AG's current stock value. Our valuation model uses many indicators to compare Henkel AG value to that of its competitors to determine the firm's financial worth. Henkel AG Co is one of the top stocks in price to earning category among its peers. It also is rated as one of the top companies in current valuation category among its peers reporting about 1,813,853,499 of Current Valuation per Price To Earning. 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 Henkel AG's earnings, one of the primary drivers of an investment's value.Henkel Current Valuation 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.
Henkel AG |
| = | 17.11 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.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Henkel AG |
| = | 31.04 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Henkel Current Valuation vs Competition
Henkel AG Co is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Household & Personal Products industry is currently estimated at about 44.89 Billion. Henkel AG totals roughly 31.04 Billion in current valuation claiming about 69% of equities under Household & Personal Products industry.
Henkel AG Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Henkel AG, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Henkel AG will eventually generate negative long term returns. The profitability progress is the general direction of Henkel AG's change in net profit over the period of time. It can combine multiple indicators of Henkel AG, 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.
KGaA, together with its subsidiaries, engages in the adhesive technologies, beauty care, and laundry and home care businesses worldwide. KGaA was founded in 1876 and is headquartered in Dsseldorf, Germany. Henkel Ag operates under Household Personal Products classification in the United States and is traded on OTC Exchange. It employs 51800 people.
Henkel Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Henkel 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 Henkel 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 Henkel AG's important profitability drivers and their relationship over time.
Use Henkel 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 Henkel 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 Henkel AG will appreciate offsetting losses from the drop in the long position's value.Henkel AG Pair Trading
Henkel AG Co Pair Trading Analysis
The ability to find closely correlated positions to Henkel 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 Henkel 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 Henkel 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 Henkel AG Co to buy it.
The correlation of Henkel 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 Henkel AG moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Henkel 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 Henkel 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 Henkel AG position
In addition to having Henkel 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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Services
Companies involved in delivering services to business or consumers across different industries and sectors. The Services theme has 30 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 Services Theme or any other thematic opportunities.
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Other Information on Investing in Henkel Pink Sheet
To fully project Henkel AG's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Henkel AG 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 Henkel AG's income statement, its balance sheet, and the statement of cash flows.