Legg Mason Price To Sales vs. Revenue
Considering Legg Mason's profitability and operating efficiency indicators, Legg Mason may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Legg Mason's ability to earn profits and add value for shareholders.
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.
Please note, there is a significant difference between Legg Mason's value and its price as these two are different measures arrived at by different means. Investors typically determine if Legg Mason is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Legg Mason'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.
For Legg Mason profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Legg Mason to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Legg Mason utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Legg Mason's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Legg Mason over time as well as its relative position and ranking within its peers.
Legg |
Legg Mason Revenue vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Legg Mason's current stock value. Our valuation model uses many indicators to compare Legg Mason value to that of its competitors to determine the firm's financial worth. Legg Mason is currently regarded as number one stock in price to sales category among its peers. It also is considered the number one company in revenue category among its peers totaling about 1,870,129,870 of Revenue per Price To Sales. Comparative valuation analysis is a catch-all technique that is used if you cannot value Legg Mason 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.Legg Revenue 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.
Legg Mason |
| = | 1.54 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.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Legg Mason |
| = | 2.88 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Legg Revenue vs Competition
Legg Mason is considered the number one company in revenue category among its peers. Market size based on revenue of Asset Management industry is now estimated at about 65.63 Billion. Legg Mason holds roughly 2.88 Billion in revenue claiming about 4% of stocks in Asset Management industry.
Legg Mason Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Legg Mason, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Legg Mason will eventually generate negative long term returns. The profitability progress is the general direction of Legg Mason's change in net profit over the period of time. It can combine multiple indicators of Legg Mason, 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.
Legg Mason, Inc. is a publicly owned asset management holding company. As of July 31, 2020, Legg Mason, Inc. operates as a subsidiary of Franklin Resources, Inc. Legg Mason operates under Asset Management classification in the United States and is traded on NYQ Exchange. It employs 3059 people.
Legg Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Legg Mason. 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 Legg Mason 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 Legg Mason's important profitability drivers and their relationship over time.
Use Legg Mason 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 Legg Mason 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 Legg Mason will appreciate offsetting losses from the drop in the long position's value.Legg Mason Pair Trading
Legg Mason Pair Trading Analysis
The ability to find closely correlated positions to Honeywell International could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Honeywell International 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 Honeywell International - 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 Honeywell International to buy it.
The correlation of Honeywell International 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 Honeywell International moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Honeywell International 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 Honeywell International 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 Legg Mason position
In addition to having Legg Mason 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 Moderate Funds Thematic Idea Now
Moderate Funds
Funds or Etfs that combine stocks, bonds and money market instruments to get modest capital appreciation over time. The Moderate Funds theme has 40 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 Moderate Funds Theme or any other thematic opportunities.
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Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Consideration for investing in Legg Stock
If you are still planning to invest in Legg Mason check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Legg Mason's history and understand the potential risks before investing.
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