AB SKF Current Valuation vs. Cash And Equivalents

SKF-A Stock  SEK 214.50  1.50  0.70%   
Considering the key profitability indicators obtained from AB SKF's historical financial statements, AB SKF 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 AB SKF's ability to earn profits and add value for shareholders.
For AB SKF profitability analysis, we use financial ratios and fundamental drivers that measure the ability of AB SKF to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well AB SKF utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between AB SKF's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of AB SKF over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between AB SKF's value and its price as these two are different measures arrived at by different means. Investors typically determine if AB SKF is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AB SKF'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.

AB SKF Cash And Equivalents vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining AB SKF's current stock value. Our valuation model uses many indicators to compare AB SKF value to that of its competitors to determine the firm's financial worth.
AB SKF is currently regarded number one company in current valuation category among its peers. It also is currently regarded as top stock in cash and equivalents category among its peers creating about  0.16  of Cash And Equivalents per Current Valuation. The ratio of Current Valuation to Cash And Equivalents for AB SKF is roughly  6.26 . 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 AB SKF's earnings, one of the primary drivers of an investment's value.

SKF-A Current Valuation vs. Competition

AB SKF is currently regarded number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Tools & Accessories industry is at this time estimated at about 604.8 Billion. AB SKF retains roughly 82.77 Billion in current valuation claiming about 14% of equities listed under Tools & Accessories industry.

SKF-A Cash And Equivalents vs. Current Valuation

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.

AB SKF

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
82.77 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.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

AB SKF

Cash

 = 

Bank Deposits

+

Liquidities

 = 
13.22 B
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).

SKF-A Cash And Equivalents Comparison

AB SKF is currently under evaluation in cash and equivalents category among its peers.

AB SKF Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in AB SKF, profitability is also one of the essential criteria for including it into their portfolios because, without profit, AB SKF will eventually generate negative long term returns. The profitability progress is the general direction of AB SKF's change in net profit over the period of time. It can combine multiple indicators of AB SKF, 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.
AB SKF provides bearings, seals, condition monitoring, and lubrication systems and services. The company was founded in 1907 and is headquartered in Gothenburg, Sweden. SKF AB operates under Tools Accessories classification in Sweden and is traded on Stockholm Stock Exchange. It employs 41433 people.

SKF-A Profitability Driver Comparison

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

Use AB SKF 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 AB SKF 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 AB SKF will appreciate offsetting losses from the drop in the long position's value.

AB SKF Pair Trading

AB SKF Pair Trading Analysis

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

In addition to having AB SKF 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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Cryptocurrency Theme
Dynamically computed list of top cryptocurrencies sorted bymarket capitalization. The Cryptocurrency theme has 50 constituents at this time.
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Additional Tools for SKF-A Stock Analysis

When running AB SKF's price analysis, check to measure AB SKF'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 AB SKF is operating at the current time. Most of AB SKF's value examination focuses on studying past and present price action to predict the probability of AB SKF's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move AB SKF's price. Additionally, you may evaluate how the addition of AB SKF to your portfolios can decrease your overall portfolio volatility.