Murata Manufacturing Price To Earning vs. EBITDA

MRAAF Stock  USD 16.18  0.63  4.05%   
Considering the key profitability indicators obtained from Murata Manufacturing's historical financial statements, Murata Manufacturing Co 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 Murata Manufacturing's ability to earn profits and add value for shareholders.
For Murata Manufacturing profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Murata Manufacturing to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Murata Manufacturing Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Murata Manufacturing's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Murata Manufacturing Co over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Please note, there is a significant difference between Murata Manufacturing's value and its price as these two are different measures arrived at by different means. Investors typically determine if Murata Manufacturing is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Murata Manufacturing'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.

Murata Manufacturing EBITDA vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Murata Manufacturing's current stock value. Our valuation model uses many indicators to compare Murata Manufacturing value to that of its competitors to determine the firm's financial worth.
Murata Manufacturing Co is considered to be number one stock in price to earning category among its peers. It also is considered to be number one stock in ebitda category among its peers totaling about  36,333,518,519  of EBITDA per Price To Earning. 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 Murata Manufacturing's earnings, one of the primary drivers of an investment's value.

Murata EBITDA vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Murata Manufacturing

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
16.20 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Murata Manufacturing

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
588.6 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.

Murata EBITDA Comparison

Murata Manufacturing is currently under evaluation in ebitda category among its peers.

Murata Manufacturing Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Murata Manufacturing, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Murata Manufacturing will eventually generate negative long term returns. The profitability progress is the general direction of Murata Manufacturing's change in net profit over the period of time. It can combine multiple indicators of Murata Manufacturing, 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.
Murata Manufacturing Co., Ltd. designs, manufactures, and sells ceramic-based passive electronic components and solutions in Japan and internationally. Murata Manufacturing Co., Ltd. was founded in 1944 and is headquartered in Nagaokakyo, Japan. Murata Manufacturing operates under Electronic Components classification in the United States and is traded on OTC Exchange. It employs 78076 people.

Murata Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Murata Manufacturing. 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 Murata Manufacturing 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 Murata Manufacturing's important profitability drivers and their relationship over time.

Use Murata Manufacturing 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 Murata Manufacturing 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 Murata Manufacturing will appreciate offsetting losses from the drop in the long position's value.

Murata Manufacturing Pair Trading

Murata Manufacturing Co Pair Trading Analysis

The ability to find closely correlated positions to Murata Manufacturing could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Murata Manufacturing 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 Murata Manufacturing - 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 Murata Manufacturing Co to buy it.
The correlation of Murata Manufacturing 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 Murata Manufacturing moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Murata Manufacturing 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 Murata Manufacturing 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Murata Manufacturing position

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Other Information on Investing in Murata Pink Sheet

To fully project Murata Manufacturing's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Murata Manufacturing 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 Murata Manufacturing's income statement, its balance sheet, and the statement of cash flows.
Potential Murata Manufacturing investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Murata Manufacturing investors may work on each financial statement separately, they are all related. The changes in Murata Manufacturing's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Murata Manufacturing's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.