Pernod Ricard Price To Earning vs. Price To Sales
| PER Stock | EUR 112.50 0.45 0.40% |
For Pernod Ricard profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Pernod Ricard to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Pernod Ricard SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Pernod Ricard's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Pernod Ricard SA over time as well as its relative position and ranking within its peers.
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Pernod Ricard SA Price To Sales vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Pernod Ricard's current stock value. Our valuation model uses many indicators to compare Pernod Ricard value to that of its competitors to determine the firm's financial worth. Pernod Ricard SA 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 price to sales category among its peers fabricating about 0.15 of Price To Sales per Price To Earning. The ratio of Price To Earning to Price To Sales for Pernod Ricard SA is roughly 6.52 . 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 Pernod Ricard's earnings, one of the primary drivers of an investment's value.Pernod Price To Sales 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.
Pernod Ricard |
| = | 28.90 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.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Pernod Ricard |
| = | 4.43 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Pernod Price To Sales Comparison
Pernod Ricard is currently under evaluation in price to sales category among its peers.
Pernod Ricard Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Pernod Ricard, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Pernod Ricard will eventually generate negative long term returns. The profitability progress is the general direction of Pernod Ricard's change in net profit over the period of time. It can combine multiple indicators of Pernod Ricard, 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.
Pernod Ricard SA produces and sells beers, wines, and spirits in the Americas, Europe, Asia, and internationally. The company was founded in 1805 and is headquartered in Paris, France. PERNOD RICARD operates under Beverages - Wineries Distilleries classification in Germany and is traded on Frankfurt Stock Exchange. It employs 18900 people.
Pernod Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Pernod Ricard. 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 Pernod Ricard 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 Pernod Ricard's important profitability drivers and their relationship over time.
Use Pernod Ricard 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 Pernod Ricard 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 Pernod Ricard will appreciate offsetting losses from the drop in the long position's value.Pernod Ricard Pair Trading
Pernod Ricard SA Pair Trading Analysis
The ability to find closely correlated positions to Pernod Ricard could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Pernod Ricard 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 Pernod Ricard - 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 Pernod Ricard SA to buy it.
The correlation of Pernod Ricard 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 Pernod Ricard moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Pernod Ricard SA 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 Pernod Ricard 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 Pernod Ricard position
In addition to having Pernod Ricard 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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Toys
Companies producing and distributing toys and different gaming products for kids. The Toys theme has 45 constituents at this time.
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 Toys Theme or any other thematic opportunities.
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Other Information on Investing in Pernod Stock
To fully project Pernod Ricard's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Pernod Ricard SA 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 Pernod Ricard's income statement, its balance sheet, and the statement of cash flows.