L’Oreal Co Cash And Equivalents vs. Price To Book

LRLCY Stock  USD 69.70  0.50  0.71%   
Considering L’Oreal Co's profitability and operating efficiency indicators, LOreal Co ADR may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess L’Oreal Co's ability to earn profits and add value for shareholders.
For L’Oreal Co profitability analysis, we use financial ratios and fundamental drivers that measure the ability of L’Oreal Co to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well LOreal Co ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between L’Oreal Co's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of LOreal Co ADR over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between L’Oreal Co's value and its price as these two are different measures arrived at by different means. Investors typically determine if L’Oreal Co is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, L’Oreal Co'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.

LOreal Co ADR Price To Book vs. Cash And Equivalents Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining L’Oreal Co's current stock value. Our valuation model uses many indicators to compare L’Oreal Co value to that of its competitors to determine the firm's financial worth.
LOreal Co ADR is currently regarded as number one stock in cash and equivalents category among its peers. It is rated below average in price to book category among its peers . The ratio of Cash And Equivalents to Price To Book for LOreal Co ADR is about  410,607,122 . Comparative valuation analysis is a catch-all model that can be used if you cannot value L’Oreal Co by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for L’Oreal Co's Pink Sheet. 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.

L’Oreal Price To Book vs. Cash And Equivalents

Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

L’Oreal Co

Cash

 = 

Bank Deposits

+

Liquidities

 = 
2.99 B
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

L’Oreal Co

P/B

 = 

MV Per Share

BV Per Share

 = 
7.28 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.

L’Oreal Price To Book Comparison

LOreal Co is currently under evaluation in price to book category among its peers.

L’Oreal Co Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in L’Oreal Co, profitability is also one of the essential criteria for including it into their portfolios because, without profit, L’Oreal Co will eventually generate negative long term returns. The profitability progress is the general direction of L’Oreal Co's change in net profit over the period of time. It can combine multiple indicators of L’Oreal Co, 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.
LOral S.A., through its subsidiaries, manufactures and sells cosmetic products for women and men worldwide. LOral S.A. was founded in 1909 and is headquartered in Clichy, France. LOreal ADR is traded on OTC Exchange in the United States.

L’Oreal Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on L’Oreal Co. 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 L’Oreal Co 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 L’Oreal Co's important profitability drivers and their relationship over time.

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Additional Tools for L’Oreal Pink Sheet Analysis

When running L’Oreal Co's price analysis, check to measure L’Oreal Co'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 L’Oreal Co is operating at the current time. Most of L’Oreal Co's value examination focuses on studying past and present price action to predict the probability of L’Oreal Co's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move L’Oreal Co's price. Additionally, you may evaluate how the addition of L’Oreal Co to your portfolios can decrease your overall portfolio volatility.