Capgemini EBITDA vs. Net Income
| CGEMY Stock | USD 32.35 0.97 3.09% |
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 ADR 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 ADR over time as well as its relative position and ranking within its peers.
Capgemini |
Capgemini SE ADR Net Income vs. EBITDA 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 ADR is number one stock in ebitda category among its peers. It also is number one stock in net income category among its peers making up about 0.46 of Net Income per EBITDA. The ratio of EBITDA to Net Income for Capgemini SE ADR is roughly 2.19 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Capgemini by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Capgemini's Pink Sheet. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Capgemini Net Income 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.
Capgemini |
| = | 2.53 B |
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.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Capgemini |
| = | 1.16 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Capgemini Net Income Comparison
Capgemini is currently under evaluation in net income 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 ADR 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 ADR 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 ADR 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.Use Investing Themes to Complement your Capgemini position
In addition to having Capgemini 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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Additional Tools for Capgemini Pink Sheet Analysis
When running Capgemini's price analysis, check to measure Capgemini'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 Capgemini is operating at the current time. Most of Capgemini's value examination focuses on studying past and present price action to predict the probability of Capgemini's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Capgemini's price. Additionally, you may evaluate how the addition of Capgemini to your portfolios can decrease your overall portfolio volatility.