Toromont Industries Price To Sales vs. Price To Earning
| 14T Stock | EUR 75.50 0.00 0.00% |
For Toromont Industries profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Toromont Industries to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Toromont Industries utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Toromont Industries's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Toromont Industries over time as well as its relative position and ranking within its peers.
Toromont |
Toromont Industries Price To Earning vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Toromont Industries's current stock value. Our valuation model uses many indicators to compare Toromont Industries value to that of its competitors to determine the firm's financial worth. Toromont Industries is rated below average in price to sales category among its peers. It is rated fifth in price to earning category among its peers reporting about 15.26 of Price To Earning per Price To Sales. 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 Toromont Industries' earnings, one of the primary drivers of an investment's value.Toromont Price To Earning 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.
Toromont Industries |
| = | 1.42 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 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.
Toromont Industries |
| = | 21.67 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.
Toromont Price To Earning Comparison
Toromont Industries is rated fourth in price to earning category among its peers.
Toromont Industries Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Toromont Industries, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Toromont Industries will eventually generate negative long term returns. The profitability progress is the general direction of Toromont Industries' change in net profit over the period of time. It can combine multiple indicators of Toromont Industries, 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.
Toromont Industries Ltd. provides specialized capital equipment in Canada, the United States, and internationally. Toromont Industries Ltd. was founded in 1961 and is based in Concord, Canada. Toromont Industries operates under Industrial Distribution classification in Germany and is traded on Frankfurt Stock Exchange. It employs 6000 people.
Toromont Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Toromont Industries. 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 Toromont Industries 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 Toromont Industries' important profitability drivers and their relationship over time.
Use Toromont Industries 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 Toromont Industries 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 Toromont Industries will appreciate offsetting losses from the drop in the long position's value.Toromont Industries Pair Trading
Toromont Industries Pair Trading Analysis
The ability to find closely correlated positions to Toromont Industries could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Toromont Industries 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 Toromont Industries - 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 Toromont Industries to buy it.
The correlation of Toromont Industries 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 Toromont Industries moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Toromont Industries 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 Toromont Industries 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 Toromont Industries position
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Other Information on Investing in Toromont Stock
To fully project Toromont Industries' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Toromont Industries 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 Toromont Industries' income statement, its balance sheet, and the statement of cash flows.