Amcor PLC Price To Sales vs. Return On Asset
| AMCR Stock | USD 9.40 0.04 0.42% |
For Amcor PLC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Amcor PLC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Amcor PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Amcor PLC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Amcor PLC over time as well as its relative position and ranking within its peers.
Amcor |
Is Metal, Glass & Plastic Containers 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 Amcor PLC. If investors know Amcor 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 Amcor PLC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Amcor PLC is measured differently than its book value, which is the value of Amcor that is recorded on the company's balance sheet. Investors also form their own opinion of Amcor PLC's value that differs from its market value or its book value, called intrinsic value, which is Amcor PLC's 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 Amcor PLC's market value can be influenced by many factors that don't directly affect Amcor PLC's 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 Amcor PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if Amcor PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Amcor PLC'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.
Amcor PLC Return On Asset vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Amcor PLC's current stock value. Our valuation model uses many indicators to compare Amcor PLC value to that of its competitors to determine the firm's financial worth. Amcor PLC is rated below average in price to sales category among its peers. It is rated below average in return on asset category among its peers reporting about 0.05 of Return On Asset per Price To Sales. The ratio of Price To Sales to Return On Asset for Amcor PLC is roughly 20.26 . Comparative valuation analysis is a catch-all technique that is used if you cannot value Amcor PLC 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.Amcor Return On Asset 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.
Amcor PLC |
| = | 1.00 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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Amcor PLC |
| = | 0.0495 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Amcor Return On Asset Comparison
Amcor PLC is currently under evaluation in return on asset category among its peers.
Amcor PLC Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Amcor PLC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Amcor PLC will eventually generate negative long term returns. The profitability progress is the general direction of Amcor PLC's change in net profit over the period of time. It can combine multiple indicators of Amcor PLC, 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.
Amcor plc develops, produces, and sells packaging products in Europe, North America, Latin America, Africa, and the Asia Pacific regions. Amcor plc was incorporated in 2018 and is headquartered in Zrich, Switzerland. Amcor Plc is traded on New York Stock Exchange in the United States.
Amcor Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Amcor PLC. 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 Amcor PLC 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 Amcor PLC's important profitability drivers and their relationship over time.
Use Amcor PLC 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 Amcor PLC 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 Amcor PLC will appreciate offsetting losses from the drop in the long position's value.Amcor PLC Pair Trading
Amcor PLC Pair Trading Analysis
The ability to find closely correlated positions to Amcor PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Amcor PLC 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 Amcor PLC - 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 Amcor PLC to buy it.
The correlation of Amcor PLC 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 Amcor PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Amcor PLC 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 Amcor PLC 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 Amcor PLC position
In addition to having Amcor PLC 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?
Run Long/short ETFs Thematic Idea Now
Long/short ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Long/short ETFs theme has 24 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 Long/short ETFs Theme or any other thematic opportunities.
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Additional Tools for Amcor Stock Analysis
When running Amcor PLC's price analysis, check to measure Amcor PLC'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 Amcor PLC is operating at the current time. Most of Amcor PLC's value examination focuses on studying past and present price action to predict the probability of Amcor PLC's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Amcor PLC's price. Additionally, you may evaluate how the addition of Amcor PLC to your portfolios can decrease your overall portfolio volatility.