Sandvik AB EBITDA vs. Cash And Equivalents

SDVKY Stock  USD 22.14  0.29  1.33%   
Based on the measurements of profitability obtained from Sandvik AB's financial statements, Sandvik AB ADR may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in March. Profitability indicators assess Sandvik AB's ability to earn profits and add value for shareholders.
For Sandvik AB profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sandvik AB to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sandvik AB ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sandvik AB's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sandvik AB ADR 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 Sandvik AB's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sandvik AB is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sandvik AB'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.

Sandvik AB ADR Cash And Equivalents vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Sandvik AB's current stock value. Our valuation model uses many indicators to compare Sandvik AB value to that of its competitors to determine the firm's financial worth.
Sandvik AB ADR is rated below average in ebitda category among its peers. It is rated below average in cash and equivalents category among its peers creating about  0.06  of Cash And Equivalents per EBITDA. The ratio of EBITDA to Cash And Equivalents for Sandvik AB ADR is roughly  16.47 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Sandvik AB by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Sandvik AB's Pink Sheet. 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.

Sandvik Cash And Equivalents 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.

Sandvik AB

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
25.37 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.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

Sandvik AB

Cash

 = 

Bank Deposits

+

Liquidities

 = 
1.54 B
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).

Sandvik Cash And Equivalents Comparison

Sandvik AB is currently under evaluation in cash and equivalents category among its peers.

Sandvik AB Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Sandvik AB, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Sandvik AB will eventually generate negative long term returns. The profitability progress is the general direction of Sandvik AB's change in net profit over the period of time. It can combine multiple indicators of Sandvik AB, 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.
Sandvik AB operates as an engineering company in the areas of mining and rock excavation, rock processing, manufacturing and machining, and materials technology in Sweden and internationally. The company was founded in 1862 and is headquartered in Stockholm, Sweden. Sandvik Ab operates under Specialty Industrial Machinery classification in the United States and is traded on OTC Exchange. It employs 571 people.

Sandvik Profitability Driver Comparison

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

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Additional Tools for Sandvik Pink Sheet Analysis

When running Sandvik AB's price analysis, check to measure Sandvik AB's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Sandvik AB is operating at the current time. Most of Sandvik AB's value examination focuses on studying past and present price action to predict the probability of Sandvik AB's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sandvik AB's price. Additionally, you may evaluate how the addition of Sandvik AB to your portfolios can decrease your overall portfolio volatility.