Paramount Communications EBITDA vs. Profit Margin

PARACABLES   69.92  0.32  0.46%   
Based on Paramount Communications' profitability indicators, Paramount Communications Limited 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 Paramount Communications' ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
972.6 M
Current Value
B
Quarterly Volatility
474 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
For Paramount Communications profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Paramount Communications to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Paramount Communications Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Paramount Communications's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Paramount Communications Limited 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 Paramount Communications' value and its price as these two are different measures arrived at by different means. Investors typically determine if Paramount Communications is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Paramount Communications' 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.

Paramount Communications Profit Margin vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Paramount Communications's current stock value. Our valuation model uses many indicators to compare Paramount Communications value to that of its competitors to determine the firm's financial worth.
Paramount Communications Limited is considered to be number one stock in ebitda category among its peers. It also is considered to be number one stock in profit margin category among its peers . The ratio of EBITDA to Profit Margin for Paramount Communications Limited is about  12,848,454,425 . At present, Paramount Communications' EBITDA is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all model that can be used if you cannot value Paramount Communications by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Paramount Communications' 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.

Paramount Profit Margin 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.

Paramount Communications

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
972.63 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.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Paramount Communications

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.08 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Paramount Profit Margin Comparison

Paramount Communications is currently under evaluation in profit margin category among its peers.

Paramount Communications Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Paramount Communications, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Paramount Communications will eventually generate negative long term returns. The profitability progress is the general direction of Paramount Communications' change in net profit over the period of time. It can combine multiple indicators of Paramount Communications, 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 Income53.8 M56.5 M
Operating Income799.3 M839.2 M
Income Before Tax819.8 M860.8 M
Total Other Income Expense Net20.6 M21.6 M
Net Income819.8 M860.8 M
Income Tax Expense-36.5 M-34.7 M
Net Income From Continuing Ops856.3 M899.1 M
Net Income Applicable To Common Shares549.3 M576.8 M
Interest Income64.6 M61.4 M
Net Interest Income-59.1 M-62 M
Change To Netincome41.7 M39.6 M

Paramount Profitability Driver Comparison

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

Use Paramount Communications 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 Paramount Communications 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 Paramount Communications will appreciate offsetting losses from the drop in the long position's value.

Paramount Communications Pair Trading

Paramount Communications Limited Pair Trading Analysis

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

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Other Information on Investing in Paramount Stock

To fully project Paramount Communications' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Paramount Communications 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 Paramount Communications' income statement, its balance sheet, and the statement of cash flows.
Potential Paramount Communications investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Paramount Communications investors may work on each financial statement separately, they are all related. The changes in Paramount Communications's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Paramount Communications'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.