PPL EBITDA vs. Target Price
| PPL Stock | USD 34.45 0.40 1.15% |
EBITDA | First Reported 2010-12-31 | Previous Quarter 3.1 B | Current Value 2.9 B | Quarterly Volatility 907.9 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.65 | 0.6156 |
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| Net Profit Margin | 0.096 | 0.089 |
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| Operating Profit Margin | 0.21 | 0.1961 |
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| Pretax Profit Margin | 0.14 | 0.1112 |
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| Return On Assets | 0.0239 | 0.0189 |
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| Return On Equity | 0.0505 | 0.0531 |
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For PPL profitability analysis, we use financial ratios and fundamental drivers that measure the ability of PPL to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well PPL Corporation utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between PPL's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of PPL Corporation over time as well as its relative position and ranking within its peers.
PPL |
PPL's Revenue Breakdown by Earning Segment
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Is Electric Utilities 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 PPL. If investors know PPL 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 PPL 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 (0.07) | Dividend Share 1.013 | Earnings Share 1.11 | Revenue Per Share 11.229 | Quarterly Revenue Growth 0.011 |
The market value of PPL Corporation is measured differently than its book value, which is the value of PPL that is recorded on the company's balance sheet. Investors also form their own opinion of PPL's value that differs from its market value or its book value, called intrinsic value, which is PPL's 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 PPL's market value can be influenced by many factors that don't directly affect PPL's 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 PPL's value and its price as these two are different measures arrived at by different means. Investors typically determine if PPL is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PPL'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.
PPL Corporation Target Price vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining PPL's current stock value. Our valuation model uses many indicators to compare PPL value to that of its competitors to determine the firm's financial worth. PPL Corporation is rated below average in ebitda category among its peers. It also is rated below average in target price category among its peers . The ratio of EBITDA to Target Price for PPL Corporation is about 89,901,813 . At this time, PPL's EBITDA is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value PPL 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.PPL Target Price 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.
PPL |
| = | 3.14 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.
PPL | = | 34.88 |
PPL Target Price Comparison
PPL is currently under evaluation in target price category among its peers.
PPL Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in PPL, profitability is also one of the essential criteria for including it into their portfolios because, without profit, PPL will eventually generate negative long term returns. The profitability progress is the general direction of PPL's change in net profit over the period of time. It can combine multiple indicators of PPL, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -163 M | -171.2 M | |
| Operating Income | 1.6 B | 2.2 B | |
| Net Income | 740 M | 1 B | |
| Income Tax Expense | 184 M | 195.8 M | |
| Income Before Tax | 924 M | 1.4 B | |
| Total Other Income Expense Net | -706 M | -670.7 M | |
| Net Income Applicable To Common Shares | 869.4 M | 1 B | |
| Net Income From Continuing Ops | 775 M | 999.9 M | |
| Non Operating Income Net Other | 48.6 M | 46.2 M | |
| Interest Income | 32 M | 30.4 M | |
| Net Interest Income | -618 M | -648.9 M | |
| Change To Netincome | 349.6 M | 500.1 M | |
| Net Income Per Share | 1.00 | 1.21 | |
| Income Quality | 2.38 | 2.26 | |
| Net Income Per E B T | 0.80 | 0.50 |
PPL Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on PPL. 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 PPL 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 PPL's important profitability drivers and their relationship over time.
Use PPL 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 PPL 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 PPL will appreciate offsetting losses from the drop in the long position's value.PPL Pair Trading
PPL Corporation Pair Trading Analysis
The ability to find closely correlated positions to PPL could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PPL 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 PPL - 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 PPL Corporation to buy it.
The correlation of PPL 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 PPL moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PPL Corporation 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 PPL 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 PPL position
In addition to having PPL 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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To fully project PPL's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of PPL Corporation 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 PPL's income statement, its balance sheet, and the statement of cash flows.