UL Solutions Price To Sales vs. Price To Book

ULS Stock   54.04  0.92  1.73%   
Based on UL Solutions' profitability indicators, UL Solutions' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess UL Solutions' ability to earn profits and add value for shareholders.

UL Solutions Price To Sales Ratio

3.12

At this time, UL Solutions' Price To Sales Ratio is comparatively stable compared to the past year. Days Sales Outstanding is likely to gain to 90.81 in 2024, whereas EV To Sales is likely to drop 2.15 in 2024. At this time, UL Solutions' Operating Income is comparatively stable compared to the past year. Income Before Tax is likely to gain to about 367.4 M in 2024, whereas Total Other Income Expense Net is likely to drop (23.1 M) in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.370.4724
Significantly Down
Very volatile
Net Profit Margin0.110.0971
Moderately Up
Pretty Stable
Operating Profit Margin0.110.1374
Significantly Down
Very volatile
Pretax Profit Margin0.140.1292
Significantly Up
Very volatile
Return On Assets0.06580.095
Way Down
Slightly volatile
Return On Equity0.420.3976
Notably Up
Slightly volatile
For UL Solutions profitability analysis, we use financial ratios and fundamental drivers that measure the ability of UL Solutions to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well UL Solutions utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between UL Solutions's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of UL Solutions over time as well as its relative position and ranking within its peers.
  
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For more information on how to buy ULS Stock please use our How to Invest in UL Solutions guide.
Is Research & Consulting Services 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 UL Solutions. If investors know ULS 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 UL Solutions 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
0.064
Dividend Share
0.125
Earnings Share
1.34
Revenue Per Share
13.8
Quarterly Revenue Growth
0.06
The market value of UL Solutions is measured differently than its book value, which is the value of ULS that is recorded on the company's balance sheet. Investors also form their own opinion of UL Solutions' value that differs from its market value or its book value, called intrinsic value, which is UL Solutions' 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 UL Solutions' market value can be influenced by many factors that don't directly affect UL Solutions' 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 UL Solutions' value and its price as these two are different measures arrived at by different means. Investors typically determine if UL Solutions is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, UL Solutions' 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.

UL Solutions Price To Book vs. Price To Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining UL Solutions's current stock value. Our valuation model uses many indicators to compare UL Solutions value to that of its competitors to determine the firm's financial worth.
UL Solutions is rated first in price to sales category among its peers. It is rated first in price to book category among its peers fabricating about  3.59  of Price To Book per Price To Sales. At this time, UL Solutions' Price To Sales Ratio is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value UL Solutions 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.

ULS Price To Book vs. Price To Sales

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.

UL Solutions

P/S

 = 

MV Per Share

Revenue Per Share

 = 
3.54 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.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

UL Solutions

P/B

 = 

MV Per Share

BV Per Share

 = 
12.70 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.

ULS Price To Book Comparison

UL Solutions is currently under evaluation in price to book category among its peers.

UL Solutions Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in UL Solutions, profitability is also one of the essential criteria for including it into their portfolios because, without profit, UL Solutions will eventually generate negative long term returns. The profitability progress is the general direction of UL Solutions' change in net profit over the period of time. It can combine multiple indicators of UL Solutions, 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 Income-146 M-153.3 M
Operating Income368 M393.2 M
Income Before Tax346 M367.4 M
Total Other Income Expense Net-22 M-23.1 M
Net Income260 M277.2 M
Income Tax Expense70 M54 M
Net Interest Income-23 M-21.9 M
Interest Income12 M7.3 M
Net Income From Continuing Ops276 M301.8 M
Net Income Per Share 1.30  1.00 
Income Quality 1.80  1.89 
Net Income Per E B T 0.75  0.61 

ULS Profitability Driver Comparison

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

Use UL Solutions 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 UL Solutions 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 UL Solutions will appreciate offsetting losses from the drop in the long position's value.

UL Solutions Pair Trading

UL Solutions Pair Trading Analysis

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

In addition to having UL Solutions 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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Commodities Funds
Commodities Funds Theme
Funds or Etfs investing in commodities such as oil, gold, corn, soy, and agricultural goods. The Commodities Funds theme has 46 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 Commodities Funds Theme or any other thematic opportunities.
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Additional Tools for ULS Stock Analysis

When running UL Solutions' price analysis, check to measure UL Solutions' 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 UL Solutions is operating at the current time. Most of UL Solutions' value examination focuses on studying past and present price action to predict the probability of UL Solutions' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move UL Solutions' price. Additionally, you may evaluate how the addition of UL Solutions to your portfolios can decrease your overall portfolio volatility.