Telefnica Current Valuation vs. Net Income
| TEFN Stock | MXN 88.60 0.05 0.06% |
For Telefnica profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Telefnica to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Telefnica SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Telefnica's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Telefnica SA over time as well as its relative position and ranking within its peers.
Telefnica |
Telefnica SA Net Income vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Telefnica's current stock value. Our valuation model uses many indicators to compare Telefnica value to that of its competitors to determine the firm's financial worth. Telefnica SA is rated fourth in current valuation category among its peers. It is rated second in net income category among its peers making up about 0.01 of Net Income per Current Valuation. The ratio of Current Valuation to Net Income for Telefnica SA is roughly 149.02 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Telefnica by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Telefnica'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.Telefnica Current Valuation vs. Competition
Telefnica SA is rated fourth in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Telecom Services industry is at this time estimated at about 9.82 Trillion. Telefnica retains roughly 1.21 Trillion in current valuation claiming about 12% of equities listed under Telecom Services industry.
Telefnica Net Income 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.
Telefnica |
| = | 1.21 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.
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.
Telefnica |
| = | 8.14 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.
Telefnica Net Income Comparison
Telefnica is currently regarded as top stock in net income category among its peers.
Telefnica Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Telefnica, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Telefnica will eventually generate negative long term returns. The profitability progress is the general direction of Telefnica's change in net profit over the period of time. It can combine multiple indicators of Telefnica, 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.
Telefnica, S.A., together with its subsidiaries, provides telecommunications services in Europe and Latin America. Telefnica, S.A. was founded in 1924 and is headquartered in Madrid, Spain. TELEFONICA operates under Telecom Services classification in Mexico and is traded on Mexico Stock Exchange. It employs 111490 people.
Telefnica Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Telefnica. 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 Telefnica 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 Telefnica's important profitability drivers and their relationship over time.
Use Telefnica 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 Telefnica 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 Telefnica will appreciate offsetting losses from the drop in the long position's value.Telefnica Pair Trading
Telefnica SA Pair Trading Analysis
The ability to find closely correlated positions to Telefnica could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Telefnica 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 Telefnica - 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 Telefnica SA to buy it.
The correlation of Telefnica 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 Telefnica moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Telefnica SA 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 Telefnica 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 Telefnica position
In addition to having Telefnica 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 Communication Thematic Idea Now
Communication
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Communication 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 Communication Theme or any other thematic opportunities.
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Additional Tools for Telefnica Stock Analysis
When running Telefnica's price analysis, check to measure Telefnica'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 Telefnica is operating at the current time. Most of Telefnica's value examination focuses on studying past and present price action to predict the probability of Telefnica's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Telefnica's price. Additionally, you may evaluate how the addition of Telefnica to your portfolios can decrease your overall portfolio volatility.