NetSol Technologies EBITDA vs. Gross Profit

NTWK Stock  USD 2.70  0.07  2.66%   
Based on NetSol Technologies' profitability indicators, NetSol Technologies is performing exceptionally good at the present time. It has a great chance to showcase excellent profitability results in March. Profitability indicators assess NetSol Technologies' ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
M
Current Value
5.7 M
Quarterly Volatility
5.6 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, NetSol Technologies' Sales General And Administrative To Revenue is quite stable compared to the past year. Operating Cash Flow Sales Ratio is expected to rise to 0.04 this year, although the value of Price To Sales Ratio will most likely fall to 0.54. At this time, NetSol Technologies' Change To Netincome is quite stable compared to the past year. Net Income Per Share is expected to rise to 0.06 this year, although the value of Income Tax Expense will most likely fall to about 614.8 K.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.520.55
Notably Down
Slightly volatile
For NetSol Technologies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NetSol Technologies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NetSol Technologies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NetSol Technologies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NetSol Technologies over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
For more information on how to buy NetSol Stock please use our How to buy in NetSol Stock guide.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NetSol Technologies. If investors know NetSol will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about NetSol Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.87)
Earnings Share
0.06
Revenue Per Share
5.395
Quarterly Revenue Growth
0.193
Return On Assets
0.0356
The market value of NetSol Technologies is measured differently than its book value, which is the value of NetSol that is recorded on the company's balance sheet. Investors also form their own opinion of NetSol Technologies' value that differs from its market value or its book value, called intrinsic value, which is NetSol Technologies' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because NetSol Technologies' market value can be influenced by many factors that don't directly affect NetSol Technologies' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between NetSol Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if NetSol Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NetSol Technologies' 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.

NetSol Technologies Gross Profit vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining NetSol Technologies's current stock value. Our valuation model uses many indicators to compare NetSol Technologies value to that of its competitors to determine the firm's financial worth.
NetSol Technologies is rated below average in ebitda category among its peers. It is rated below average in gross profit category among its peers fabricating about  4.81  of Gross Profit per EBITDA. At this time, NetSol Technologies' EBITDA is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value NetSol Technologies 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.

NetSol Gross Profit vs. EBITDA

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.

NetSol Technologies

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
6.09 M
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.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

NetSol Technologies

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
29.28 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

NetSol Gross Profit Comparison

NetSol Technologies is currently under evaluation in gross profit category among its peers.

NetSol Technologies Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in NetSol Technologies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NetSol Technologies will eventually generate negative long term returns. The profitability progress is the general direction of NetSol Technologies' change in net profit over the period of time. It can combine multiple indicators of NetSol Technologies, 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-41.3 M-39.3 M
Operating IncomeM4.2 M
Net Income2.4 M2.5 M
Income Before Tax3.7 M3.9 M
Total Other Income Expense Net-310.6 K-295.1 K
Income Tax ExpenseM614.8 K
Net Loss-4.7 M-4.5 M
Net Income From Continuing Ops2.4 M2.5 M
Non Operating Income Net Other1.9 M2.1 M
Interest Income2.2 M1.1 M
Net Interest Income884.5 K603 K
Change To NetincomeM6.3 M
Net Income Per Share 0.05  0.06 
Income Quality 1.26  0.82 
Net Income Per E B T 0.19  0.18 

NetSol Profitability Driver Comparison

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

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When determining whether NetSol Technologies is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if NetSol Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Netsol Technologies Stock. Highlighted below are key reports to facilitate an investment decision about Netsol Technologies Stock:
Check out Correlation Analysis.
For more information on how to buy NetSol Stock please use our How to buy in NetSol Stock guide.
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To fully project NetSol Technologies' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of NetSol Technologies 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 NetSol Technologies' income statement, its balance sheet, and the statement of cash flows.
Potential NetSol Technologies investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although NetSol Technologies investors may work on each financial statement separately, they are all related. The changes in NetSol Technologies's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on NetSol Technologies'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.