RWE AG EBITDA vs. Price To Book
Considering the key profitability indicators obtained from RWE AG's historical financial statements, RWE AG may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess RWE AG's ability to earn profits and add value for shareholders.
Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as various price indices.
Please note, there is a significant difference between RWE AG's value and its price as these two are different measures arrived at by different means. Investors typically determine if RWE AG is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, RWE AG's 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.
For RWE AG profitability analysis, we use financial ratios and fundamental drivers that measure the ability of RWE AG to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well RWE AG utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between RWE AG's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of RWE AG over time as well as its relative position and ranking within its peers.
RWE |
RWE AG Price To Book vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining RWE AG's current stock value. Our valuation model uses many indicators to compare RWE AG value to that of its competitors to determine the firm's financial worth. RWE AG is currently regarded as top stock in ebitda category among its peers. It is rated second in price to book category among its peers . The ratio of EBITDA to Price To Book for RWE AG is about 1,259,176,417 . 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 RWE AG's earnings, one of the primary drivers of an investment's value.RWE Price To Book vs. EBITDA
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.
RWE AG |
| = | 4.39 B |
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.
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.
RWE AG |
| = | 3.49 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.
RWE Price To Book Comparison
RWE AG is currently under evaluation in price to book category among its peers.
RWE AG Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in RWE AG, profitability is also one of the essential criteria for including it into their portfolios because, without profit, RWE AG will eventually generate negative long term returns. The profitability progress is the general direction of RWE AG's change in net profit over the period of time. It can combine multiple indicators of RWE AG, 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.
It operates through four segments Lignite Nuclear European Power Supply Trading and Innogy. The company was founded in 1898 and is headquartered in Essen, Germany. RWE AG operates under Utilities - Diversified classification in Germany and is traded on Frankfurt Stock Exchange. It employs 17908 people.
RWE Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on RWE AG. 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 RWE AG 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 RWE AG's important profitability drivers and their relationship over time.
Use RWE AG 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 RWE AG 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 RWE AG will appreciate offsetting losses from the drop in the long position's value.RWE AG Pair Trading
RWE AG Pair Trading Analysis
The ability to find closely correlated positions to RWE AG could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace RWE AG 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 RWE AG - 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 RWE AG to buy it.
The correlation of RWE AG 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 RWE AG moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if RWE AG 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 RWE AG 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 RWE AG position
In addition to having RWE AG 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 Food Products Thematic Idea Now
Food Products
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Food Products 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 Food Products Theme or any other thematic opportunities.
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Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as various price indices. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Tools for RWE Stock
When running RWE AG's price analysis, check to measure RWE AG's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy RWE AG is operating at the current time. Most of RWE AG's value examination focuses on studying past and present price action to predict the probability of RWE AG's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move RWE AG's price. Additionally, you may evaluate how the addition of RWE AG to your portfolios can decrease your overall portfolio volatility.
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