Ligand Pharmaceuticals Price To Book vs. Gross Profit

LGND Stock  USD 116.91  3.40  3.00%   
Based on Ligand Pharmaceuticals' profitability indicators, Ligand Pharmaceuticals' profitability may be sliding down. It has an above-average odds of reporting lower numbers next quarter. Profitability indicators assess Ligand Pharmaceuticals' ability to earn profits and add value for shareholders. At present, Ligand Pharmaceuticals' Sales General And Administrative To Revenue is projected to increase slightly based on the last few years of reporting. The current year's Operating Cash Flow Sales Ratio is expected to grow to 0.40, whereas Days Sales Outstanding is forecasted to decline to 72.74. At present, Ligand Pharmaceuticals' Income Before Tax is projected to increase significantly based on the last few years of reporting. The current year's Total Other Income Expense Net is expected to grow to about 54.3 M, whereas Income Tax Expense is forecasted to decline to about 6.5 M.
For Ligand Pharmaceuticals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ligand Pharmaceuticals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ligand Pharmaceuticals Incorporated utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ligand Pharmaceuticals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ligand Pharmaceuticals Incorporated over time as well as its relative position and ranking within its peers.
  

Ligand Pharmaceuticals' Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
Is Biotechnology 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 Ligand Pharmaceuticals. If investors know Ligand 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 Ligand Pharmaceuticals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.032
Earnings Share
2.49
Revenue Per Share
8.509
Quarterly Revenue Growth
0.576
Return On Assets
0.013
The market value of Ligand Pharmaceuticals is measured differently than its book value, which is the value of Ligand that is recorded on the company's balance sheet. Investors also form their own opinion of Ligand Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Ligand Pharmaceuticals' 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 Ligand Pharmaceuticals' market value can be influenced by many factors that don't directly affect Ligand Pharmaceuticals' 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 Ligand Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Ligand Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ligand Pharmaceuticals' 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.

Ligand Pharmaceuticals Gross Profit vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Ligand Pharmaceuticals's current stock value. Our valuation model uses many indicators to compare Ligand Pharmaceuticals value to that of its competitors to determine the firm's financial worth.
Ligand Pharmaceuticals Incorporated is rated below average in price to book category among its peers. It is rated second overall in gross profit category among its peers fabricating about  40,872,777  of Gross Profit per Price To Book. At present, Ligand Pharmaceuticals' Gross Profit is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Ligand Pharmaceuticals by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Ligand Gross Profit 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.

Ligand Pharmaceuticals

P/B

 = 

MV Per Share

BV Per Share

 = 
2.63 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.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Ligand Pharmaceuticals

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
107.34 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

Ligand Gross Profit Comparison

Ligand Pharmaceuticals is currently under evaluation in gross profit category among its peers.

Ligand Pharmaceuticals Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Ligand Pharmaceuticals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ligand Pharmaceuticals will eventually generate negative long term returns. The profitability progress is the general direction of Ligand Pharmaceuticals' change in net profit over the period of time. It can combine multiple indicators of Ligand Pharmaceuticals, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income-817 K-857.9 K
Operating Income11.9 M12.5 M
Income Before Tax63.7 M66.8 M
Total Other Income Expense Net51.7 M54.3 M
Net Income52.2 M54.8 M
Income Tax Expense9.8 M6.5 M
Net Income From Continuing Ops21.1 M20 M
Non Operating Income Net Other-13.8 M-13.1 M
Net Loss-38.4 M-36.4 M
Interest IncomeM11.2 M
Net Interest Income6.3 M6.6 M
Change To Netincome43.1 M45.3 M
Net Income Per Share 3.02  3.17 
Income Quality 0.95  1.00 
Net Income Per E B T 0.82  0.47 

Ligand Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Ligand Pharmaceuticals. 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 Ligand Pharmaceuticals 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 Ligand Pharmaceuticals' important profitability drivers and their relationship over time.

Use Ligand Pharmaceuticals 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 Ligand Pharmaceuticals 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 Ligand Pharmaceuticals will appreciate offsetting losses from the drop in the long position's value.

Ligand Pharmaceuticals Pair Trading

Ligand Pharmaceuticals Incorporated Pair Trading Analysis

The ability to find closely correlated positions to Ligand Pharmaceuticals could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ligand Pharmaceuticals 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 Ligand Pharmaceuticals - 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 Ligand Pharmaceuticals Incorporated to buy it.
The correlation of Ligand Pharmaceuticals 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 Ligand Pharmaceuticals moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ligand Pharmaceuticals 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 Ligand Pharmaceuticals 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Ligand Pharmaceuticals position

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When determining whether Ligand Pharmaceuticals is a strong investment it is important to analyze Ligand Pharmaceuticals' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Ligand Pharmaceuticals' future performance. For an informed investment choice regarding Ligand Stock, refer to the following important reports:
Check out Correlation Analysis.
You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
To fully project Ligand Pharmaceuticals' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ligand Pharmaceuticals 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 Ligand Pharmaceuticals' income statement, its balance sheet, and the statement of cash flows.
Potential Ligand Pharmaceuticals investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Ligand Pharmaceuticals investors may work on each financial statement separately, they are all related. The changes in Ligand Pharmaceuticals's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Ligand Pharmaceuticals's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.