Legrand SA Net Income vs. Current Valuation
| LR Stock | EUR 94.88 0.32 0.34% |
For Legrand SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Legrand SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Legrand SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Legrand SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Legrand SA over time as well as its relative position and ranking within its peers.
Legrand |
Legrand SA Current Valuation vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Legrand SA's current stock value. Our valuation model uses many indicators to compare Legrand SA value to that of its competitors to determine the firm's financial worth. Legrand SA is currently regarded as number one stock in net income category among its peers. It also is considered the number one company in current valuation category among its peers reporting about 26.46 of Current Valuation per Net Income. Comparative valuation analysis is a catch-all model that can be used if you cannot value Legrand SA by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Legrand SA's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Legrand Current Valuation 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.
Legrand SA |
| = | 904.5 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.
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.
Legrand SA |
| = | 23.93 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.
Legrand Current Valuation vs Competition
Legrand SA is considered the number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Diversified Industrials industry is now estimated at about 239.46 Billion. Legrand SA holds roughly 23.93 Billion in current valuation claiming about 10% of equities under Diversified Industrials industry.
Legrand SA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Legrand SA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Legrand SA will eventually generate negative long term returns. The profitability progress is the general direction of Legrand SA's change in net profit over the period of time. It can combine multiple indicators of Legrand SA, 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.
Legrand SA, together with its subsidiaries, provides electrical and digital building infrastructures worldwide. The company was founded in 1865 and is headquartered in Limoges, France. LEGRAND operates under Diversified Industrials classification in France and is traded on Paris Stock Exchange. It employs 38377 people.
Legrand Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Legrand SA. 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 Legrand SA 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 Legrand SA's important profitability drivers and their relationship over time.
Use Legrand SA 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 Legrand SA 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 Legrand SA will appreciate offsetting losses from the drop in the long position's value.Legrand SA Pair Trading
Legrand SA Pair Trading Analysis
The ability to find closely correlated positions to Legrand SA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Legrand SA 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 Legrand SA - 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 Legrand SA to buy it.
The correlation of Legrand SA 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 Legrand SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Legrand SA 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 Legrand SA 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 Legrand SA position
In addition to having Legrand SA 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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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Healthcare theme has 61 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 Healthcare Theme or any other thematic opportunities.
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Other Information on Investing in Legrand Stock
To fully project Legrand SA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Legrand SA 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 Legrand SA's income statement, its balance sheet, and the statement of cash flows.