Pershing Square Net Income vs. Current Valuation
| PSHZF Stock | USD 49.71 0.40 0.81% |
For Pershing Square profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Pershing Square to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Pershing Square Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Pershing Square's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Pershing Square Holdings over time as well as its relative position and ranking within its peers.
Pershing |
Pershing Square Holdings Current Valuation vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Pershing Square's current stock value. Our valuation model uses many indicators to compare Pershing Square value to that of its competitors to determine the firm's financial worth. Pershing Square Holdings is considered to be number one stock in net income category among its peers. It is regarded fourth in current valuation category among its peers . 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 Pershing Square's earnings, one of the primary drivers of an investment's value.Pershing Current Valuation vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Pershing Square |
| = | 2.44 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.
Pershing Square |
| = | (1.69 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.
Pershing Square Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Pershing Square, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Pershing Square will eventually generate negative long term returns. The profitability progress is the general direction of Pershing Square's change in net profit over the period of time. It can combine multiple indicators of Pershing Square, 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.
Pershing Square Holdings, Ltd. is a closed-ended balanced hedge fund launched and managed by Pershing Square Capital Management, L.P. Pershing Square Holdings, Ltd. was formed on February 2, 2012 and is domiciled in Guernsey. Pershing Square is traded on OTC Exchange in the United States.
Pershing Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Pershing Square. 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 Pershing Square 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 Pershing Square's important profitability drivers and their relationship over time.
Use Pershing Square 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 Pershing Square 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 Pershing Square will appreciate offsetting losses from the drop in the long position's value.Pershing Square Pair Trading
Pershing Square Holdings Pair Trading Analysis
The ability to find closely correlated positions to Pershing Square could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Pershing Square 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 Pershing Square - 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 Pershing Square Holdings to buy it.
The correlation of Pershing Square 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 Pershing Square moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Pershing Square Holdings 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 Pershing Square 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 Pershing Square position
In addition to having Pershing Square 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?
Run Automobiles and Trucks Thematic Idea Now
Automobiles and Trucks
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Automobiles and Trucks theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Automobiles and Trucks Theme or any other thematic opportunities.
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Other Information on Investing in Pershing Pink Sheet
To fully project Pershing Square's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Pershing Square Holdings 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 Pershing Square's income statement, its balance sheet, and the statement of cash flows.