Cisco Systems Price To Book vs. EBITDA
| CSCO Stock | MXN 1,200 21.00 1.78% |
For Cisco Systems profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cisco Systems to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cisco Systems utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cisco Systems's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cisco Systems over time as well as its relative position and ranking within its peers.
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Cisco Systems EBITDA vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Cisco Systems's current stock value. Our valuation model uses many indicators to compare Cisco Systems value to that of its competitors to determine the firm's financial worth. Cisco Systems is rated below average in price to book category among its peers. It also is rated below average in ebitda category among its peers totaling about 3,335,849,356 of EBITDA per Price To Book. Comparative valuation analysis is a catch-all model that can be used if you cannot value Cisco Systems by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Cisco Systems' Stock. 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.Cisco EBITDA 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.
Cisco Systems |
| = | 5.03 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.
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.
Cisco Systems |
| = | 16.79 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.
Cisco EBITDA Comparison
Cisco Systems is rated below average in ebitda category among its peers.
Cisco Systems Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Cisco Systems, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cisco Systems will eventually generate negative long term returns. The profitability progress is the general direction of Cisco Systems' change in net profit over the period of time. It can combine multiple indicators of Cisco Systems, 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.
Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry worldwide. Cisco Systems, Inc. was founded in 1984 and is headquartered in San Jose, California. CISCO SYSTEMS operates under Communication Equipment classification in Mexico and is traded on Mexico Stock Exchange. It employs 74200 people.
Cisco Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Cisco Systems. 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 Cisco Systems 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 Cisco Systems' important profitability drivers and their relationship over time.
Use Cisco Systems 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 Cisco Systems 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 Cisco Systems will appreciate offsetting losses from the drop in the long position's value.Cisco Systems Pair Trading
Cisco Systems Pair Trading Analysis
The ability to find closely correlated positions to Cisco Systems could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cisco Systems 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 Cisco Systems - 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 Cisco Systems to buy it.
The correlation of Cisco Systems 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 Cisco Systems moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cisco Systems 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 Cisco Systems 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 Cisco Systems position
In addition to having Cisco Systems 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 Emerging Markets Funds Thematic Idea Now
Emerging Markets Funds
Fund or Etfs that invest in markets of developing countries. The Emerging Markets Funds theme has 41 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 Emerging Markets Funds Theme or any other thematic opportunities.
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Additional Tools for Cisco Stock Analysis
When running Cisco Systems' price analysis, check to measure Cisco Systems' 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 Cisco Systems is operating at the current time. Most of Cisco Systems' value examination focuses on studying past and present price action to predict the probability of Cisco Systems' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cisco Systems' price. Additionally, you may evaluate how the addition of Cisco Systems to your portfolios can decrease your overall portfolio volatility.