Herbalife Nutrition Current Valuation vs. Market Capitalization
| HLF Stock | USD 8.99 0.17 1.93% |
For Herbalife Nutrition profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Herbalife Nutrition to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Herbalife Nutrition utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Herbalife Nutrition's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Herbalife Nutrition over time as well as its relative position and ranking within its peers.
Herbalife |
Is Wholesale 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 Herbalife Nutrition. If investors know Herbalife 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 Herbalife Nutrition 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 Herbalife Nutrition is measured differently than its book value, which is the value of Herbalife that is recorded on the company's balance sheet. Investors also form their own opinion of Herbalife Nutrition's value that differs from its market value or its book value, called intrinsic value, which is Herbalife Nutrition's 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 Herbalife Nutrition's market value can be influenced by many factors that don't directly affect Herbalife Nutrition's 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 Herbalife Nutrition's value and its price as these two are different measures arrived at by different means. Investors typically determine if Herbalife Nutrition is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Herbalife Nutrition'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.
Herbalife Nutrition Market Capitalization vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Herbalife Nutrition's current stock value. Our valuation model uses many indicators to compare Herbalife Nutrition value to that of its competitors to determine the firm's financial worth. Herbalife Nutrition is rated below average in current valuation category among its peers. It is rated below average in market capitalization category among its peers creating about 0.30 of Market Capitalization per Current Valuation. The ratio of Current Valuation to Market Capitalization for Herbalife Nutrition is roughly 3.28 . Comparative valuation analysis is a catch-all technique that is used if you cannot value Herbalife Nutrition 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.Herbalife Current Valuation vs. Competition
Herbalife Nutrition is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Consumer Staples industry is currently estimated at about 171.84 Billion. Herbalife Nutrition claims roughly 2.93 Billion in current valuation contributing just under 2% to stocks in Consumer Staples industry.
Herbalife Market Capitalization vs. Current Valuation
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.
Herbalife Nutrition |
| = | 2.93 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.
Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.
Herbalife Nutrition |
| = | 892.56 M |
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.
Herbalife Market Capitalization vs Competition
Herbalife Nutrition is rated below average in market capitalization category among its peers. Market capitalization of Consumer Staples industry is currently estimated at about 131.61 Billion. Herbalife Nutrition maintains roughly 892.56 Million in market capitalization contributing less than 1% to stocks in Consumer Staples industry.
Herbalife Nutrition Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Herbalife Nutrition, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Herbalife Nutrition will eventually generate negative long term returns. The profitability progress is the general direction of Herbalife Nutrition's change in net profit over the period of time. It can combine multiple indicators of Herbalife Nutrition, 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.
Herbalife Nutrition Ltd. offers nutrition solutions in North America, Mexico, South and Central America, Europe, the Middle East, Africa, China, and rest of Asia Pacific. Herbalife Nutrition Ltd. was founded in 1980 and is headquartered in Los Angeles, California. Herbalife operates under Packaged Foods classification in the United States and is traded on New York Stock Exchange. It employs 10800 people.
Herbalife Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Herbalife Nutrition. 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 Herbalife Nutrition 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 Herbalife Nutrition's important profitability drivers and their relationship over time.
Use Herbalife Nutrition 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 Herbalife Nutrition 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 Herbalife Nutrition will appreciate offsetting losses from the drop in the long position's value.Herbalife Nutrition Pair Trading
Herbalife Nutrition Pair Trading Analysis
The ability to find closely correlated positions to Herbalife Nutrition could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Herbalife Nutrition 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 Herbalife Nutrition - 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 Herbalife Nutrition to buy it.
The correlation of Herbalife Nutrition 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 Herbalife Nutrition moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Herbalife Nutrition 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 Herbalife Nutrition 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 Herbalife Nutrition position
In addition to having Herbalife Nutrition 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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Large and mid-size companies, ETFs and funds that are either investing or directly involved in providing energy derived from sources not connected to fossil fuels, do not consume natural resources, and do not harm the environment. This includes wind power, nuclear and solar energy, biofuel, ethanol, hydrogen and others alternative sources of energy. The Alternative Energy theme has 28 constituents at this time.
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Check out Risk vs Return Analysis. For more detail on how to invest in Herbalife Stock please use our How to Invest in Herbalife Nutrition guide.You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
To fully project Herbalife Nutrition's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Herbalife Nutrition 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 Herbalife Nutrition's income statement, its balance sheet, and the statement of cash flows.