SAP SE Return On Asset vs. Current Valuation
| SAPN Stock | MXN 5,000 0.00 0.00% |
For SAP SE profitability analysis, we use financial ratios and fundamental drivers that measure the ability of SAP SE to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well SAP SE utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between SAP SE's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of SAP SE over time as well as its relative position and ranking within its peers.
SAP |
SAP SE Current Valuation vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining SAP SE's current stock value. Our valuation model uses many indicators to compare SAP SE value to that of its competitors to determine the firm's financial worth. SAP SE is rated second in return on asset category among its peers. It is currently regarded number one company in current valuation category among its peers reporting about Huge of Current Valuation per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value SAP SE by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for SAP SE's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.SAP Current Valuation vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
SAP SE |
| = | 0.0458 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
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.
SAP SE |
| = | 2.74 T |
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.
SAP Current Valuation vs Competition
SAP SE is currently regarded number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Software - Application industry is at this time estimated at about 5.78 Trillion. SAP SE totals roughly 2.74 Trillion in current valuation claiming about 47% of equities listed under Software - Application industry.
SAP SE Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in SAP SE, profitability is also one of the essential criteria for including it into their portfolios because, without profit, SAP SE will eventually generate negative long term returns. The profitability progress is the general direction of SAP SE's change in net profit over the period of time. It can combine multiple indicators of SAP SE, 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.
SAP SE operates as an enterprise application software, and analytics and business intelligence company worldwide. SAP SE was founded in 1972 and is headquartered in Walldorf, Germany. SAP SE operates under Software - Application classification in Mexico and is traded on Mexico Stock Exchange. It employs 98332 people.
SAP Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on SAP SE. 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 SAP SE 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 SAP SE's important profitability drivers and their relationship over time.
Use SAP SE 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 SAP SE 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 SAP SE will appreciate offsetting losses from the drop in the long position's value.SAP SE Pair Trading
SAP SE Pair Trading Analysis
The ability to find closely correlated positions to SAP SE could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace SAP SE 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 SAP SE - 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 SAP SE to buy it.
The correlation of SAP SE 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 SAP SE moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if SAP SE 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 SAP SE 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 SAP SE position
In addition to having SAP SE 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 Munis Funds Thematic Idea Now
Munis Funds
Funds or Etfs that invest in fixed income securities issued by states, cities, and towns as well as other public entities. The Munis Funds theme has 38 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 Munis Funds Theme or any other thematic opportunities.
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Additional Tools for SAP Stock Analysis
When running SAP SE's price analysis, check to measure SAP SE'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 SAP SE is operating at the current time. Most of SAP SE's value examination focuses on studying past and present price action to predict the probability of SAP SE's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move SAP SE's price. Additionally, you may evaluate how the addition of SAP SE to your portfolios can decrease your overall portfolio volatility.