Playa Hotels Price To Sales vs. Price To Earning

PLYA Stock  USD 10.20  0.11  1.09%   
Based on Playa Hotels' profitability indicators, Playa Hotels Resorts is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Playa Hotels' ability to earn profits and add value for shareholders.

Playa Hotels Price To Sales Ratio

1.94

At present, Playa Hotels' Price To Sales Ratio is projected to slightly decrease based on the last few years of reporting. The current year's Days Sales Outstanding is expected to grow to 43.86, whereas Sales General And Administrative To Revenue is forecasted to decline to 0.14. At present, Playa Hotels' Accumulated Other Comprehensive Income is projected to decrease significantly based on the last few years of reporting. The current year's Operating Income is expected to grow to about 183.7 M, whereas Total Other Income Expense Net is projected to grow to (104 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.310.4717
Way Down
Pretty Stable
For Playa Hotels profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Playa Hotels to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Playa Hotels Resorts utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Playa Hotels's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Playa Hotels Resorts over time as well as its relative position and ranking within its peers.
  

Playa Hotels' Revenue Breakdown by Earning Segment

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Is Hotels, Resorts & Cruise Lines 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 Playa Hotels. If investors know Playa 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 Playa Hotels 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
(0.23)
Earnings Share
0.5
Revenue Per Share
7.105
Quarterly Revenue Growth
(0.14)
Return On Assets
0.0517
The market value of Playa Hotels Resorts is measured differently than its book value, which is the value of Playa that is recorded on the company's balance sheet. Investors also form their own opinion of Playa Hotels' value that differs from its market value or its book value, called intrinsic value, which is Playa Hotels' 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 Playa Hotels' market value can be influenced by many factors that don't directly affect Playa Hotels' 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 Playa Hotels' value and its price as these two are different measures arrived at by different means. Investors typically determine if Playa Hotels is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Playa Hotels' 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.

Playa Hotels Resorts Price To Earning vs. Price To Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Playa Hotels's current stock value. Our valuation model uses many indicators to compare Playa Hotels value to that of its competitors to determine the firm's financial worth.
Playa Hotels Resorts is regarded fifth in price to sales category among its peers. It is rated below average in price to earning category among its peers reporting about  12.45  of Price To Earning per Price To Sales. At present, Playa Hotels' Price To Sales Ratio is projected to slightly decrease based on the last few years of reporting. 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 Playa Hotels' earnings, one of the primary drivers of an investment's value.

Playa Price To Earning 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.

Playa Hotels

P/S

 = 

MV Per Share

Revenue Per Share

 = 
1.29 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.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Playa Hotels

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
16.08 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Playa Price To Earning Comparison

Playa Hotels is currently under evaluation in price to earning category among its peers.

Playa Hotels Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Playa Hotels, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Playa Hotels will eventually generate negative long term returns. The profitability progress is the general direction of Playa Hotels' change in net profit over the period of time. It can combine multiple indicators of Playa Hotels, 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 Income1.1 M1.2 M
Operating Income175 M183.7 M
Income Before Tax65.6 M68.8 M
Total Other Income Expense Net-109.4 M-104 M
Net Income53.9 M56.5 M
Income Tax Expense11.7 M12.3 M
Net Income From Continuing Ops53.9 M56.5 M
Net Income Applicable To Common Shares51 M53.6 M
Interest Income50.7 M46.4 M
Net Interest Income-108.2 M-102.8 M
Non Operating Income Net Other-13 M-12.4 M
Change To Netincome9.8 M13.2 M
Net Income Per Share 0.36  0.38 
Income Quality 2.53  2.66 
Net Income Per E B T 0.82  0.78 

Playa Profitability Driver Comparison

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

Use Playa Hotels 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 Playa Hotels 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 Playa Hotels will appreciate offsetting losses from the drop in the long position's value.

Playa Hotels Pair Trading

Playa Hotels Resorts Pair Trading Analysis

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

In addition to having Playa Hotels 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.

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When determining whether Playa Hotels Resorts offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Playa Hotels' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Playa Hotels Resorts Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Playa Hotels Resorts Stock:
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You can also try the CEOs Directory module to screen CEOs from public companies around the world.
To fully project Playa Hotels' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Playa Hotels Resorts 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 Playa Hotels' income statement, its balance sheet, and the statement of cash flows.
Potential Playa Hotels investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Playa Hotels investors may work on each financial statement separately, they are all related. The changes in Playa Hotels's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Playa Hotels'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.