Capgemini Return On Asset vs. Price To Book

CAPMF Stock  USD 162.20  0.30  0.18%   
Considering the key profitability indicators obtained from Capgemini's historical financial statements, Capgemini SE may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Capgemini's ability to earn profits and add value for shareholders.
For Capgemini profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Capgemini to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Capgemini SE utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Capgemini's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Capgemini SE over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Capgemini's value and its price as these two are different measures arrived at by different means. Investors typically determine if Capgemini is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Capgemini'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.

Capgemini SE Price To Book vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Capgemini's current stock value. Our valuation model uses many indicators to compare Capgemini value to that of its competitors to determine the firm's financial worth.
Capgemini SE is rated second in return on asset category among its peers. It also is rated second in price to book category among its peers fabricating about  52.47  of Price To Book per Return On Asset. 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 Capgemini's earnings, one of the primary drivers of an investment's value.

Capgemini Price To Book vs. Return On Asset

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.

Capgemini

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0606
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.
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.

Capgemini

P/B

 = 

MV Per Share

BV Per Share

 = 
3.18 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.

Capgemini Price To Book Comparison

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

Capgemini Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Capgemini, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Capgemini will eventually generate negative long term returns. The profitability progress is the general direction of Capgemini's change in net profit over the period of time. It can combine multiple indicators of Capgemini, 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.
Capgemini SE provides consulting, digital transformation, technology, and engineering services primarily in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company was founded in 1967 and is headquartered in Paris, France. Cap Gemini operates under Information Technology Services classification in the United States and is traded on OTC Exchange. It employs 352148 people.

Capgemini Profitability Driver Comparison

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

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

Capgemini Pair Trading

Capgemini SE Pair Trading Analysis

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

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Other Information on Investing in Capgemini Pink Sheet

To fully project Capgemini's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Capgemini 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 Capgemini's income statement, its balance sheet, and the statement of cash flows.
Potential Capgemini investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Capgemini investors may work on each financial statement separately, they are all related. The changes in Capgemini's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Capgemini's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.