Elanco Animal EBITDA vs. Price To Earning
| 5EA Stock | EUR 11.95 0.19 1.62% |
For Elanco Animal profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Elanco Animal to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Elanco Animal Health utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Elanco Animal's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Elanco Animal Health over time as well as its relative position and ranking within its peers.
Elanco |
Elanco Animal Health Price To Earning vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Elanco Animal's current stock value. Our valuation model uses many indicators to compare Elanco Animal value to that of its competitors to determine the firm's financial worth. Elanco Animal Health is number one stock in ebitda category among its peers. It also is number one stock in price to earning category among its peers . The ratio of EBITDA to Price To Earning for Elanco Animal Health is about 7,149,395 . 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 Elanco Animal's earnings, one of the primary drivers of an investment's value.Elanco Price To Earning 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.
Elanco Animal |
| = | 703 M |
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.
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.
Elanco Animal |
| = | 98.33 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.
Elanco Price To Earning Comparison
Elanco Animal is currently under evaluation in price to earning category among its peers.
Elanco Animal Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Elanco Animal, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Elanco Animal will eventually generate negative long term returns. The profitability progress is the general direction of Elanco Animal's change in net profit over the period of time. It can combine multiple indicators of Elanco Animal, 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.
Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals. Elanco Animal Health Incorporated was founded in 1954 and is headquartered in Greenfield, Indiana. ELANCO ANIMAL operates under Drug ManufacturersSpecialty Generic classification in Germany and is traded on Frankfurt Stock Exchange. It employs 10200 people.
Elanco Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Elanco Animal. 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 Elanco Animal 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 Elanco Animal's important profitability drivers and their relationship over time.
Use Elanco Animal 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 Elanco Animal 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 Elanco Animal will appreciate offsetting losses from the drop in the long position's value.Elanco Animal Pair Trading
Elanco Animal Health Pair Trading Analysis
The ability to find closely correlated positions to Elanco Animal could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Elanco Animal 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 Elanco Animal - 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 Elanco Animal Health to buy it.
The correlation of Elanco Animal 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 Elanco Animal moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Elanco Animal Health 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 Elanco Animal 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 Elanco Animal position
In addition to having Elanco Animal 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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Companies involved in mining, production, and distribution of various industrial metals and minerals. The Heavy Metals theme has 37 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 Heavy Metals Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Elanco Stock
When determining whether Elanco Animal Health offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Elanco Animal's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Elanco Animal Health Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Elanco Animal Health Stock:Check out Trending Equities. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
To fully project Elanco Animal's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Elanco Animal Health 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 Elanco Animal's income statement, its balance sheet, and the statement of cash flows.