Guardant Health Current Valuation vs. Return On Equity
| GH Stock | USD 34.76 0.18 0.52% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.43 | 0.5974 |
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For Guardant Health profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Guardant Health to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Guardant Health utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Guardant Health's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Guardant Health over time as well as its relative position and ranking within its peers.
Guardant |
Is Health Care Providers & Services 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 Guardant Health. If investors know Guardant 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 Guardant Health listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (4.26) | Revenue Per Share 5.7 | Quarterly Revenue Growth 0.339 | Return On Assets (0.16) | Return On Equity (6.09) |
The market value of Guardant Health is measured differently than its book value, which is the value of Guardant that is recorded on the company's balance sheet. Investors also form their own opinion of Guardant Health's value that differs from its market value or its book value, called intrinsic value, which is Guardant Health'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 Guardant Health's market value can be influenced by many factors that don't directly affect Guardant Health'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 Guardant Health's value and its price as these two are different measures arrived at by different means. Investors typically determine if Guardant Health is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Guardant Health'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.
Guardant Health Return On Equity vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Guardant Health's current stock value. Our valuation model uses many indicators to compare Guardant Health value to that of its competitors to determine the firm's financial worth. Guardant Health is rated as one of the top companies in current valuation category among its peers. It is rated # 3 in return on equity category among its peers . As of now, Guardant Health's Return On Equity is decreasing as compared to previous years. 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 Guardant Health's earnings, one of the primary drivers of an investment's value.Guardant Health's Earnings Breakdown by Geography
Guardant Current Valuation vs. Competition
Guardant Health is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Health Care industry is currently estimated at about 16.67 Billion. Guardant Health totals roughly 4.64 Billion in current valuation claiming about 28% of equities under Health Care industry.
Guardant Return On Equity vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Guardant Health |
| = | 4.64 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Guardant Health |
| = | -6.09 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Guardant Return On Equity Comparison
Guardant Health is currently under evaluation in return on equity category among its peers.
Guardant Health Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Guardant Health, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Guardant Health will eventually generate negative long term returns. The profitability progress is the general direction of Guardant Health's change in net profit over the period of time. It can combine multiple indicators of Guardant Health, 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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -3.7 M | -3.9 M | |
| Net Interest Income | 32.8 M | 34.4 M | |
| Interest Income | 35.4 M | 37.1 M | |
| Operating Income | -564.7 M | -536.5 M | |
| Net Loss | -479.4 M | -455.5 M | |
| Income Before Tax | -478.8 M | -454.8 M | |
| Total Other Income Expense Net | 86 M | 90.3 M | |
| Net Loss | -589.1 M | -559.7 M | |
| Net Loss | -479.4 M | -455.5 M | |
| Income Tax Expense | 685 K | 719.2 K | |
| Non Operating Income Net Other | -95.8 M | -91.1 M | |
| Change To Netincome | 119.9 M | 70.3 M | |
| Net Loss | (4.28) | (4.50) | |
| Income Quality | 0.68 | 0.74 | |
| Net Income Per E B T | 1.00 | 0.80 |
Guardant Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Guardant Health. 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 Guardant Health 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 Guardant Health's important profitability drivers and their relationship over time.
Use Guardant Health 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 Guardant Health 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 Guardant Health will appreciate offsetting losses from the drop in the long position's value.Guardant Health Pair Trading
Guardant Health Pair Trading Analysis
The ability to find closely correlated positions to Guardant Health could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Guardant Health 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 Guardant Health - 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 Guardant Health to buy it.
The correlation of Guardant Health 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 Guardant Health moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Guardant Health 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 Guardant Health 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 Guardant Health position
In addition to having Guardant Health 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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Check out Risk vs Return Analysis. For more detail on how to invest in Guardant Stock please use our How to Invest in Guardant Health guide.You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
To fully project Guardant Health's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Guardant Health 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 Guardant Health's income statement, its balance sheet, and the statement of cash flows.