Pentair Plc Current Valuation vs. Return On Equity
| PNT Stock | EUR 100.30 0.80 0.79% |
For Pentair Plc profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Pentair Plc to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Pentair plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Pentair Plc's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Pentair plc over time as well as its relative position and ranking within its peers.
Pentair |
Pentair plc Return On Equity vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Pentair Plc's current stock value. Our valuation model uses many indicators to compare Pentair Plc value to that of its competitors to determine the firm's financial worth. Pentair plc is rated top company in current valuation category among its peers. It also is considered to be number one stock in return on equity category among its peers . The ratio of Current Valuation to Return On Equity for Pentair plc is about 50,121,510,143 . 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 Pentair Plc's earnings, one of the primary drivers of an investment's value.Pentair Current Valuation vs. Competition
Pentair plc is rated top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Diversified Industrials industry is at this time estimated at about 321.3 Billion. Pentair Plc holds roughly 9.44 Billion in current valuation claiming about 2.94% of equities under Diversified Industrials industry.
Pentair Return On Equity 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.
Pentair Plc |
| = | 9.44 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.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Pentair Plc |
| = | 0.19 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Pentair Return On Equity Comparison
Pentair Plc is currently under evaluation in return on equity category among its peers.
Pentair Plc Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Pentair Plc, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Pentair Plc will eventually generate negative long term returns. The profitability progress is the general direction of Pentair Plc's change in net profit over the period of time. It can combine multiple indicators of Pentair Plc, 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.
Pentair plc provides various smart water solutions worldwide. Pentair plc was founded in 1966 and is headquartered in London, the United Kingdom. PENTAIR PLC operates under Diversified Industrials classification in Germany and is traded on Frankfurt Stock Exchange. It employs 10000 people.
Pentair Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Pentair Plc. 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 Pentair Plc 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 Pentair Plc's important profitability drivers and their relationship over time.
Use Pentair Plc 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 Pentair Plc 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 Pentair Plc will appreciate offsetting losses from the drop in the long position's value.Pentair Plc Pair Trading
Pentair plc Pair Trading Analysis
The ability to find closely correlated positions to Pentair Plc could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Pentair Plc 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 Pentair Plc - 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 Pentair plc to buy it.
The correlation of Pentair Plc 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 Pentair Plc moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Pentair plc 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 Pentair Plc 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 Pentair Plc position
In addition to having Pentair Plc 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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Drugs
Companies involved in medical and pharmaceutical drug research, manufacturing, and delivery. The Drugs theme has 38 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 Drugs Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Pentair Stock
When determining whether Pentair plc is a strong investment it is important to analyze Pentair Plc's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Pentair Plc's future performance. For an informed investment choice regarding Pentair Stock, refer to the following important reports:Check out Your Equity Center. For more detail on how to invest in Pentair Stock please use our How to Invest in Pentair Plc guide.You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
To fully project Pentair Plc's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Pentair plc 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 Pentair Plc's income statement, its balance sheet, and the statement of cash flows.