Graham Holdings Price To Earning vs. Profit Margin
| WPOB Stock | EUR 835.00 10.00 1.21% |
For Graham Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Graham Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Graham Holdings Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Graham Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Graham Holdings Co over time as well as its relative position and ranking within its peers.
Graham |
Graham Holdings Profit Margin vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Graham Holdings's current stock value. Our valuation model uses many indicators to compare Graham Holdings value to that of its competitors to determine the firm's financial worth. Graham Holdings Co is rated below average in price to earning category among its peers. It is rated below average in profit margin category among its peers . The ratio of Price To Earning to Profit Margin for Graham Holdings Co is about 642.69 . 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 Graham Holdings' earnings, one of the primary drivers of an investment's value.Graham Profit Margin vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Graham Holdings |
| = | 10.99 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Graham Holdings |
| = | 0.02 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Graham Profit Margin Comparison
Graham Holdings is rated below average in profit margin category among its peers.
Graham Holdings Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Graham Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Graham Holdings will eventually generate negative long term returns. The profitability progress is the general direction of Graham Holdings' change in net profit over the period of time. It can combine multiple indicators of Graham Holdings, 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.
Graham Holdings Company, through its subsidiaries, operates as a diversified education and media company worldwide. Graham Holdings Company was founded in 1877 and is based in Arlington, Virginia. GRAHAM HLDGS operates under Education Training Services classification in Germany and is traded on Frankfurt Stock Exchange. It employs 11047 people.
Graham Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Graham Holdings. 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 Graham Holdings 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 Graham Holdings' important profitability drivers and their relationship over time.
Use Graham Holdings 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 Graham Holdings 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 Graham Holdings will appreciate offsetting losses from the drop in the long position's value.Graham Holdings Pair Trading
Graham Holdings Co Pair Trading Analysis
The ability to find closely correlated positions to Graham Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Graham Holdings 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 Graham Holdings - 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 Graham Holdings Co to buy it.
The correlation of Graham Holdings 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 Graham Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Graham Holdings 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 Graham Holdings 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 Graham Holdings position
In addition to having Graham Holdings 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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Additional Information and Resources on Investing in Graham Stock
When determining whether Graham Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Graham Holdings' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Graham Holdings Co Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Graham Holdings Co Stock:Check out Your Current Watchlist. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
To fully project Graham Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Graham Holdings 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 Graham Holdings' income statement, its balance sheet, and the statement of cash flows.