Essentra Plc Current Valuation vs. Return On Equity
| HOF Stock | EUR 1.53 0.08 4.97% |
For Essentra Plc profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Essentra Plc to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Essentra plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Essentra Plc's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Essentra plc over time as well as its relative position and ranking within its peers.
Essentra |
Essentra plc Return On Equity vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Essentra Plc's current stock value. Our valuation model uses many indicators to compare Essentra Plc value to that of its competitors to determine the firm's financial worth. Essentra plc is rated below average in current valuation category among its peers. It also is rated below average in return on equity category among its peers . The ratio of Current Valuation to Return On Equity for Essentra plc is about 53,261,237,748 . 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 Essentra Plc's earnings, one of the primary drivers of an investment's value.Essentra Current Valuation vs. Competition
Essentra plc is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Rubber & Plastics industry is currently estimated at about 55.18 Billion. Essentra Plc holds roughly 1.18 Billion in current valuation claiming about 2.14% of equities listed under Rubber & Plastics industry.
Essentra 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.
Essentra Plc |
| = | 1.18 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.
Essentra Plc |
| = | 0.0222 |
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.
Essentra Return On Equity Comparison
Essentra Plc is rated below average in return on equity category among its peers.
Essentra Plc Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Essentra Plc, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Essentra Plc will eventually generate negative long term returns. The profitability progress is the general direction of Essentra Plc's change in net profit over the period of time. It can combine multiple indicators of Essentra Plc, 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.
Essentra plc manufactures and sells specialist plastic, fiber, foam, and packaging products worldwide. Essentra plc was founded in 2005 and is headquartered in Milton Keynes, the United Kingdom. Essentra plc operates under Rubber Plastics classification in Germany and is traded on Frankfurt Stock Exchange. It employs 9270 people.
Essentra Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Essentra 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 Essentra 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 Essentra Plc's important profitability drivers and their relationship over time.
Use Essentra 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 Essentra 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 Essentra Plc will appreciate offsetting losses from the drop in the long position's value.Essentra Plc Pair Trading
Essentra plc Pair Trading Analysis
The ability to find closely correlated positions to Essentra 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 Essentra 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 Essentra 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 Essentra plc to buy it.
The correlation of Essentra 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 Essentra Plc moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Essentra 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 Essentra 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 Essentra Plc position
In addition to having Essentra 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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Other Information on Investing in Essentra Stock
To fully project Essentra Plc's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Essentra 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 Essentra Plc's income statement, its balance sheet, and the statement of cash flows.