HCL Technologies Price To Sales vs. Revenue
| HCLTECH Stock | 1,848 7.15 0.39% |
For HCL Technologies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of HCL Technologies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well HCL Technologies Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between HCL Technologies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of HCL Technologies Limited over time as well as its relative position and ranking within its peers.
HCL |
HCL Technologies Revenue vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining HCL Technologies's current stock value. Our valuation model uses many indicators to compare HCL Technologies value to that of its competitors to determine the firm's financial worth. HCL Technologies Limited is one of the top stocks in price to sales category among its peers. It also is rated as one of the top companies in revenue category among its peers totaling about 2,997,995,754 of Revenue per Price To Sales. As of now, HCL Technologies' Total Revenue is increasing as compared to previous years. Comparative valuation analysis is a catch-all model that can be used if you cannot value HCL Technologies by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for HCL Technologies' 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.HCL Revenue vs. Price To Sales
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.
HCL Technologies |
| = | 366.62 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.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
HCL Technologies |
| = | 1.1 T |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
HCL Revenue vs Competition
HCL Technologies Limited is rated as one of the top companies in revenue category among its peers. Market size based on revenue of Information Technology industry is currently estimated at about 1.26 Trillion. HCL Technologies totals roughly 1.1 Trillion in revenue claiming about 87% of equities under Information Technology industry.
HCL Technologies Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in HCL Technologies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, HCL Technologies will eventually generate negative long term returns. The profitability progress is the general direction of HCL Technologies' change in net profit over the period of time. It can combine multiple indicators of HCL Technologies, 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 | 120 B | 126 B | |
| Operating Income | 201.5 B | 211.6 B | |
| Income Before Tax | 209.7 B | 220.2 B | |
| Total Other Income Expense Net | 8.2 B | 8.6 B | |
| Net Income | 158 B | 165.9 B | |
| Income Tax Expense | 52.6 B | 55.2 B | |
| Net Income From Continuing Ops | 157.1 B | 165 B | |
| Net Income Applicable To Common Shares | 170.8 B | 179.3 B | |
| Net Interest Income | -5.5 B | -5.3 B | |
| Interest Income | 4.1 B | 4.3 B | |
| Change To Netincome | 43.7 M | 45.9 M |
HCL Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on HCL Technologies. 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 HCL Technologies 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 HCL Technologies' important profitability drivers and their relationship over time.
Use HCL Technologies 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 HCL Technologies 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 HCL Technologies will appreciate offsetting losses from the drop in the long position's value.HCL Technologies Pair Trading
HCL Technologies Limited Pair Trading Analysis
The ability to find closely correlated positions to HCL Technologies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace HCL Technologies 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 HCL Technologies - 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 HCL Technologies Limited to buy it.
The correlation of HCL Technologies 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 HCL Technologies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if HCL Technologies 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 HCL Technologies 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 HCL Technologies position
In addition to having HCL Technologies 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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Other Information on Investing in HCL Stock
To fully project HCL Technologies' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of HCL Technologies 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 HCL Technologies' income statement, its balance sheet, and the statement of cash flows.