STMICROELECTRONICS EBITDA vs. Current Valuation
| SGM Stock | EUR 23.44 0.53 2.21% |
For STMICROELECTRONICS profitability analysis, we use financial ratios and fundamental drivers that measure the ability of STMICROELECTRONICS to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well STMICROELECTRONICS utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between STMICROELECTRONICS's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of STMICROELECTRONICS over time as well as its relative position and ranking within its peers.
STMICROELECTRONICS |
STMICROELECTRONICS Current Valuation vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining STMICROELECTRONICS's current stock value. Our valuation model uses many indicators to compare STMICROELECTRONICS value to that of its competitors to determine the firm's financial worth. STMICROELECTRONICS is rated below average in ebitda category among its peers. It also is rated below average in current valuation category among its peers reporting about 5.62 of Current Valuation per EBITDA. 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 STMICROELECTRONICS's earnings, one of the primary drivers of an investment's value.STMICROELECTRONICS Current Valuation 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.
STMICROELECTRONICS |
| = | 5.71 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.
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.
STMICROELECTRONICS |
| = | 32.1 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.
STMICROELECTRONICS Current Valuation vs Competition
STMICROELECTRONICS is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Other industry is at this time estimated at about 16.9 Trillion. STMICROELECTRONICS adds roughly 32.1 Billion in current valuation claiming only tiny portion of all equities under Other industry.
STMICROELECTRONICS Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on STMICROELECTRONICS. 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 STMICROELECTRONICS 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 STMICROELECTRONICS's important profitability drivers and their relationship over time.
Use STMICROELECTRONICS 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 STMICROELECTRONICS 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 STMICROELECTRONICS will appreciate offsetting losses from the drop in the long position's value.STMICROELECTRONICS Pair Trading
STMICROELECTRONICS Pair Trading Analysis
The ability to find closely correlated positions to STMICROELECTRONICS could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace STMICROELECTRONICS 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 STMICROELECTRONICS - 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 STMICROELECTRONICS to buy it.
The correlation of STMICROELECTRONICS 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 STMICROELECTRONICS moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if STMICROELECTRONICS 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 STMICROELECTRONICS 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 STMICROELECTRONICS position
In addition to having STMICROELECTRONICS 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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Companies that are related to providing casino-type services across multiple geographical areas. The Casinos theme has 51 constituents at this time.
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Other Information on Investing in STMICROELECTRONICS Stock
To fully project STMICROELECTRONICS's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of STMICROELECTRONICS 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 STMICROELECTRONICS's income statement, its balance sheet, and the statement of cash flows.