KB HOME Net Income vs. EBITDA
| KBH Stock | 78.00 0.50 0.64% |
For KB HOME profitability analysis, we use financial ratios and fundamental drivers that measure the ability of KB HOME to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well KB HOME utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between KB HOME's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of KB HOME over time as well as its relative position and ranking within its peers.
KBH |
KB HOME EBITDA vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining KB HOME's current stock value. Our valuation model uses many indicators to compare KB HOME value to that of its competitors to determine the firm's financial worth. KB HOME is rated second overall in net income category among its peers. It also is rated second overall in ebitda category among its peers totaling about 1.31 of EBITDA per Net Income. 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 KB HOME's earnings, one of the primary drivers of an investment's value.KBH EBITDA vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
KB HOME |
| = | 816.67 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.
KB HOME |
| = | 1.07 B |
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.
KBH EBITDA Comparison
KB HOME is currently under evaluation in ebitda category among its peers.
KBH Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on KB HOME. 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 KB HOME 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 KB HOME's important profitability drivers and their relationship over time.
Use KB HOME 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 KB HOME 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 KB HOME will appreciate offsetting losses from the drop in the long position's value.KB HOME Pair Trading
KB HOME Pair Trading Analysis
The ability to find closely correlated positions to KB HOME could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace KB HOME 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 KB HOME - 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 KB HOME to buy it.
The correlation of KB HOME 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 KB HOME moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if KB HOME 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 KB HOME 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 KB HOME position
In addition to having KB HOME 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?
Run Long Short Funds Thematic Idea Now
Long Short Funds
Funds or Etfs that are designed to hedge away market risk by investing in combination of bonds, stocks, derivative instruments as well as short positions to maximize returns irrespective of market conditions. The Long Short Funds theme has 46 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 Long Short Funds Theme or any other thematic opportunities.
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Additional Tools for KBH Stock Analysis
When running KB HOME's price analysis, check to measure KB HOME'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 KB HOME is operating at the current time. Most of KB HOME's value examination focuses on studying past and present price action to predict the probability of KB HOME's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move KB HOME's price. Additionally, you may evaluate how the addition of KB HOME to your portfolios can decrease your overall portfolio volatility.