Airbus SE Price To Book vs. Cash And Equivalents
| AIRA Stock | EUR 38.40 0.80 2.04% |
For Airbus SE profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Airbus SE to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Airbus SE utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Airbus SE's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Airbus SE over time as well as its relative position and ranking within its peers.
Airbus |
Airbus SE Cash And Equivalents vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Airbus SE's current stock value. Our valuation model uses many indicators to compare Airbus SE value to that of its competitors to determine the firm's financial worth. Airbus SE is number one stock in price to book category among its peers. It also is number one stock in cash and equivalents category among its peers creating about 900,134,155 of Cash And Equivalents per Price To Book. 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 Airbus SE's earnings, one of the primary drivers of an investment's value.Airbus Cash And Equivalents vs. Price To Book
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.
Airbus SE |
| = | 13.86 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.
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.
Airbus SE |
| = | 12.48 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).
Airbus Cash And Equivalents Comparison
Airbus SE is currently under evaluation in cash and equivalents category among its peers.
Airbus SE Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Airbus SE, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Airbus SE will eventually generate negative long term returns. The profitability progress is the general direction of Airbus SE's change in net profit over the period of time. It can combine multiple indicators of Airbus SE, 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.
Airbus SE provides aerospace products, services, and solutions in the Netherlands and internationally. Airbus SE was founded in 2000 and is headquartered in Leiden, the Netherlands. Airbus SE is traded on Frankfurt Stock Exchange in Germany.
Airbus Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Airbus SE. 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 Airbus SE 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 Airbus SE's important profitability drivers and their relationship over time.
Use Airbus SE 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 Airbus SE 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 Airbus SE will appreciate offsetting losses from the drop in the long position's value.Airbus SE Pair Trading
Airbus SE Pair Trading Analysis
The ability to find closely correlated positions to Airbus SE could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Airbus SE 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 Airbus SE - 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 Airbus SE to buy it.
The correlation of Airbus SE 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 Airbus SE moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Airbus SE 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 Airbus SE 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 Airbus SE position
In addition to having Airbus SE 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 providing management services to businesses. The Management theme has 39 constituents at this time.
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Other Information on Investing in Airbus Stock
To fully project Airbus SE's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Airbus SE 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 Airbus SE's income statement, its balance sheet, and the statement of cash flows.