Metso Outotec Current Valuation vs. EBITDA
| M6Q Stock | EUR 8.86 0.13 1.45% |
For Metso Outotec profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Metso Outotec to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Metso Outotec Oyj utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Metso Outotec's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Metso Outotec Oyj over time as well as its relative position and ranking within its peers.
Metso |
Metso Outotec Oyj EBITDA vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Metso Outotec's current stock value. Our valuation model uses many indicators to compare Metso Outotec value to that of its competitors to determine the firm's financial worth. Metso Outotec Oyj is rated below average in current valuation category among its peers. It is rated below average in ebitda category among its peers totaling about 0.07 of EBITDA per Current Valuation. The ratio of Current Valuation to EBITDA for Metso Outotec Oyj is roughly 14.26 . 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 Metso Outotec's earnings, one of the primary drivers of an investment's value.Metso Current Valuation vs. Competition
Metso Outotec Oyj is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Farm & Heavy Construction Machinery industry is now estimated at about 592.69 Billion. Metso Outotec claims roughly 8.44 Billion in current valuation contributing just under 2% to equities under Farm & Heavy Construction Machinery industry.
Metso EBITDA 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.
Metso Outotec |
| = | 8.44 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.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Metso Outotec |
| = | 592 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Metso EBITDA Comparison
Metso Outotec is rated below average in ebitda category among its peers.
Metso Outotec Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Metso Outotec, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Metso Outotec will eventually generate negative long term returns. The profitability progress is the general direction of Metso Outotec's change in net profit over the period of time. It can combine multiple indicators of Metso Outotec, 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.
Metso Outotec Oyj provides sustainable technologies, end-to-end solutions, and services for minerals processing, aggregates, and metals refining industries in Finland, Europe, North and Central America, South America, the Asia Pacific, Africa, the Middle East, and India. Metso Outotec Oyj was incorporated in 1990 and is headquartered in Helsinki, Finland. METSO OUTOTEC operates under Farm Heavy Construction Machinery classification in Germany and is traded on Frankfurt Stock Exchange. It employs 15681 people.
Metso Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Metso Outotec. 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 Metso Outotec 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 Metso Outotec's important profitability drivers and their relationship over time.
Use Metso Outotec 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 Metso Outotec 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 Metso Outotec will appreciate offsetting losses from the drop in the long position's value.Metso Outotec Pair Trading
Metso Outotec Oyj Pair Trading Analysis
The ability to find closely correlated positions to Metso Outotec could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Metso Outotec 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 Metso Outotec - 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 Metso Outotec Oyj to buy it.
The correlation of Metso Outotec 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 Metso Outotec moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Metso Outotec Oyj 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 Metso Outotec 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 Metso Outotec position
In addition to having Metso Outotec 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 Metso Stock
To fully project Metso Outotec's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Metso Outotec Oyj 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 Metso Outotec's income statement, its balance sheet, and the statement of cash flows.