Diageo Plc Book Value Per Share vs. Price To Sales
| GUI Stock | 30.25 0.26 0.85% |
For Diageo Plc profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Diageo Plc to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Diageo plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Diageo Plc's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Diageo plc over time as well as its relative position and ranking within its peers.
Diageo |
Diageo plc Price To Sales vs. Book Value Per Share Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Diageo Plc's current stock value. Our valuation model uses many indicators to compare Diageo Plc value to that of its competitors to determine the firm's financial worth. Diageo plc is rated below average in book value per share category among its peers. It is rated # 2 in price to sales category among its peers fabricating about 1.76 of Price To Sales per Book Value Per Share. 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 Diageo Plc's earnings, one of the primary drivers of an investment's value.Diageo Price To Sales vs. Book Value Per Share
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.
Diageo Plc |
| = | 3.58 X |
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Diageo Plc |
| = | 6.29 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Diageo Price To Sales Comparison
Diageo Plc is one of the top stocks in price to sales category among its peers.
Diageo Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Diageo Plc. 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 Diageo Plc 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 Diageo Plc's important profitability drivers and their relationship over time.
Use Diageo Plc 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 Diageo Plc 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 Diageo Plc will appreciate offsetting losses from the drop in the long position's value.Diageo Plc Pair Trading
Diageo plc Pair Trading Analysis
The ability to find closely correlated positions to Diageo Plc could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Diageo Plc 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 Diageo Plc - 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 Diageo plc to buy it.
The correlation of Diageo Plc 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 Diageo Plc moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Diageo plc 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 Diageo Plc 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 Diageo Plc position
In addition to having Diageo Plc 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 Diageo Stock Analysis
When running Diageo Plc's price analysis, check to measure Diageo Plc'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 Diageo Plc is operating at the current time. Most of Diageo Plc's value examination focuses on studying past and present price action to predict the probability of Diageo Plc's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Diageo Plc's price. Additionally, you may evaluate how the addition of Diageo Plc to your portfolios can decrease your overall portfolio volatility.