Merck KGaA Current Valuation vs. Price To Book
| MKKGY Stock | USD 29.90 0.04 0.13% |
For Merck KGaA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Merck KGaA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Merck KGaA ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Merck KGaA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Merck KGaA ADR over time as well as its relative position and ranking within its peers.
Merck |
Merck KGaA ADR Price To Book vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Merck KGaA's current stock value. Our valuation model uses many indicators to compare Merck KGaA value to that of its competitors to determine the firm's financial worth. Merck KGaA ADR is rated top company in current valuation category among its peers. It also is considered to be number one stock in price to book category among its peers . The ratio of Current Valuation to Price To Book for Merck KGaA ADR is about 33,563,176,204 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Merck KGaA by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Merck KGaA'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.Merck Current Valuation vs. Competition
Merck KGaA ADR is rated top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Drug Manufacturers—Specialty & Generic industry is now estimated at about 96.76 Billion. Merck KGaA totals roughly 92.22 Billion in current valuation claiming about 95% of equities under Drug Manufacturers—Specialty & Generic industry.
Merck Price To Book 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.
Merck KGaA |
| = | 92.22 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.
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.
Merck KGaA |
| = | 2.75 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.
Merck Price To Book Comparison
Merck KGaA is currently under evaluation in price to book category among its peers.
Merck KGaA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Merck KGaA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Merck KGaA will eventually generate negative long term returns. The profitability progress is the general direction of Merck KGaA's change in net profit over the period of time. It can combine multiple indicators of Merck KGaA, 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.
MERCK Kommanditgesellschaft auf Aktien operates in the healthcare, life science, and electronics sectors worldwide. MERCK Kommanditgesellschaft auf Aktien is a subsidiary of E. Merck Kgaa operates under Drug ManufacturersSpecialty Generic classification in the United States and is traded on OTC Exchange. It employs 62770 people.
Merck Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Merck KGaA. 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 Merck KGaA 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 Merck KGaA's important profitability drivers and their relationship over time.
Use Merck KGaA 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 Merck KGaA 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 Merck KGaA will appreciate offsetting losses from the drop in the long position's value.Merck KGaA Pair Trading
Merck KGaA ADR Pair Trading Analysis
The ability to find closely correlated positions to Merck KGaA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Merck KGaA 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 Merck KGaA - 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 Merck KGaA ADR to buy it.
The correlation of Merck KGaA 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 Merck KGaA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Merck KGaA ADR 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 Merck KGaA 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 Merck KGaA position
In addition to having Merck KGaA 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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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 Gold ETFs Theme or any other thematic opportunities.
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Additional Tools for Merck Pink Sheet Analysis
When running Merck KGaA's price analysis, check to measure Merck KGaA'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 Merck KGaA is operating at the current time. Most of Merck KGaA's value examination focuses on studying past and present price action to predict the probability of Merck KGaA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Merck KGaA's price. Additionally, you may evaluate how the addition of Merck KGaA to your portfolios can decrease your overall portfolio volatility.