Littelfuse Current Valuation vs. Return On Equity
| LFS Stock | EUR 232.00 2.00 0.85% |
For Littelfuse profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Littelfuse to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Littelfuse utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Littelfuse's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Littelfuse over time as well as its relative position and ranking within its peers.
Littelfuse |
Littelfuse Return On Equity vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Littelfuse's current stock value. Our valuation model uses many indicators to compare Littelfuse value to that of its competitors to determine the firm's financial worth. Littelfuse is rated second overall in current valuation category among its peers. It is rated third overall in return on equity category among its peers . The ratio of Current Valuation to Return On Equity for Littelfuse is about 32,964,461,880 . 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 Littelfuse's earnings, one of the primary drivers of an investment's value.Littelfuse Current Valuation vs. Competition
Littelfuse is rated second overall in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Electronics Distribution industry is now estimated at about 18.34 Billion. Littelfuse totals roughly 6 Billion in current valuation claiming about 33% of equities under Electronics Distribution industry.
Littelfuse Return On Equity 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.
Littelfuse |
| = | 6 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.
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.
Littelfuse |
| = | 0.18 |
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.
Littelfuse Return On Equity Comparison
Littelfuse is currently under evaluation in return on equity category among its peers.
Littelfuse Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Littelfuse, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Littelfuse will eventually generate negative long term returns. The profitability progress is the general direction of Littelfuse's change in net profit over the period of time. It can combine multiple indicators of Littelfuse, 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.
Littelfuse, Inc. designs, manufactures, and sells circuit protection, power control, and sensing products worldwide. The company was founded in 1927 and is headquartered in Chicago, Illinois. LITTELFUSE INC operates under Electronics Distribution classification in Germany and is traded on Frankfurt Stock Exchange. It employs 12000 people.
Littelfuse Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Littelfuse. 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 Littelfuse 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 Littelfuse's important profitability drivers and their relationship over time.
Use Littelfuse 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 Littelfuse 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 Littelfuse will appreciate offsetting losses from the drop in the long position's value.Littelfuse Pair Trading
Littelfuse Pair Trading Analysis
The ability to find closely correlated positions to Littelfuse could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Littelfuse 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 Littelfuse - 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 Littelfuse to buy it.
The correlation of Littelfuse 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 Littelfuse moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Littelfuse 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 Littelfuse 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 Littelfuse position
In addition to having Littelfuse 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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Additional Information and Resources on Investing in Littelfuse Stock
When determining whether Littelfuse is a strong investment it is important to analyze Littelfuse's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Littelfuse's future performance. For an informed investment choice regarding Littelfuse Stock, refer to the following important reports:Check out Correlation Analysis. For more detail on how to invest in Littelfuse Stock please use our How to Invest in Littelfuse guide.You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
To fully project Littelfuse's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Littelfuse 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 Littelfuse's income statement, its balance sheet, and the statement of cash flows.