Compass Group Price To Earning vs. EBITDA

CMPGF Stock  USD 34.20  0.74  2.12%   
Considering Compass Group's profitability and operating efficiency indicators, Compass Group PLC 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 Compass Group's ability to earn profits and add value for shareholders.
For Compass Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Compass Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Compass Group PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Compass Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Compass Group PLC 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 Compass Group's value and its price as these two are different measures arrived at by different means. Investors typically determine if Compass Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Compass Group'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.

Compass Group PLC EBITDA vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Compass Group's current stock value. Our valuation model uses many indicators to compare Compass Group value to that of its competitors to determine the firm's financial worth.
Compass Group PLC is number one stock in price to earning category among its peers. It also is number one stock in ebitda category among its peers totaling about  10,455,430  of EBITDA per Price To Earning. 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 Compass Group's earnings, one of the primary drivers of an investment's value.

Compass EBITDA vs. Price To Earning

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.

Compass Group

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
200.47 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.
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.

Compass Group

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
2.1 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.

Compass EBITDA Comparison

Compass Group is currently under evaluation in ebitda category among its peers.

Compass Group Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Compass Group, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Compass Group will eventually generate negative long term returns. The profitability progress is the general direction of Compass Group's change in net profit over the period of time. It can combine multiple indicators of Compass Group, 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.
Compass Group PLC operates as a food and support services company in North America, Europe, and internationally. Compass Group PLC was founded in 1941 and is based in Chertsey, the United Kingdom. COMPASS GROUP operates under Restaurants classification in the United States and is traded on OTC Exchange. It employs 480000 people.

Compass Profitability Driver Comparison

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

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Use Investing Themes to Complement your Compass Group position

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Other Information on Investing in Compass Pink Sheet

To fully project Compass Group's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Compass Group PLC 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 Compass Group's income statement, its balance sheet, and the statement of cash flows.
Potential Compass Group investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Compass Group investors may work on each financial statement separately, they are all related. The changes in Compass Group's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Compass Group'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.