Cogent Communications Price To Book vs. Cash And Equivalents
| CCOI Stock | USD 76.71 0.14 0.18% |
For Cogent Communications profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cogent Communications to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cogent Communications Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cogent Communications's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cogent Communications Group over time as well as its relative position and ranking within its peers.
Cogent |
Is Diversified Telecommunication Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cogent Communications. If investors know Cogent will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cogent Communications listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 228.092 | Dividend Share 3.88 | Earnings Share 0.69 | Revenue Per Share 20.531 | Quarterly Revenue Growth (0.09) |
The market value of Cogent Communications is measured differently than its book value, which is the value of Cogent that is recorded on the company's balance sheet. Investors also form their own opinion of Cogent Communications' value that differs from its market value or its book value, called intrinsic value, which is Cogent Communications' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cogent Communications' market value can be influenced by many factors that don't directly affect Cogent Communications' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cogent Communications' value and its price as these two are different measures arrived at by different means. Investors typically determine if Cogent Communications is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cogent Communications' 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.
Cogent Communications Cash And Equivalents vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Cogent Communications's current stock value. Our valuation model uses many indicators to compare Cogent Communications value to that of its competitors to determine the firm's financial worth. Cogent Communications Group is number one stock in price to book category among its peers. It is rated below average in cash and equivalents category among its peers creating about 26,896,688 of Cash And Equivalents per Price To Book. 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 Cogent Communications' earnings, one of the primary drivers of an investment's value.Cogent Communications' Earnings Breakdown by Geography
Cogent Cash And Equivalents vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Cogent Communications |
| = | 11.60 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
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.
Cogent Communications |
| = | 312.05 M |
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).
Cogent Cash And Equivalents Comparison
Cogent Communications is currently under evaluation in cash and equivalents category among its peers.
Cogent Communications Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Cogent Communications, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cogent Communications will eventually generate negative long term returns. The profitability progress is the general direction of Cogent Communications' change in net profit over the period of time. It can combine multiple indicators of Cogent Communications, 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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -14.4 M | -13.7 M | |
| Operating Income | -129.3 M | -122.9 M | |
| Income Before Tax | 1.2 B | 1.3 B | |
| Total Other Income Expense Net | 1.3 B | 1.4 B | |
| Net Income | 1.3 B | 1.3 B | |
| Income Tax Expense | -54 M | -51.3 M | |
| Net Income Applicable To Common Shares | 4.6 M | 4.4 M | |
| Net Income From Continuing Ops | 1.3 B | 1.3 B | |
| Non Operating Income Net Other | -35.7 M | -33.9 M | |
| Interest Income | 35.7 M | 37.5 M | |
| Net Interest Income | -71.1 M | -74.6 M | |
| Change To Netincome | 60.8 M | 63.9 M | |
| Net Income Per Share | 26.88 | 28.22 | |
| Income Quality | 0.01 | 0.01 | |
| Net Income Per E B T | 1.04 | 0.58 |
Cogent Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Cogent Communications. 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 Cogent Communications 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 Cogent Communications' important profitability drivers and their relationship over time.
Use Cogent Communications 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 Cogent Communications 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 Cogent Communications will appreciate offsetting losses from the drop in the long position's value.Cogent Communications Pair Trading
Cogent Communications Group Pair Trading Analysis
The ability to find closely correlated positions to Cogent Communications could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cogent Communications 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 Cogent Communications - 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 Cogent Communications Group to buy it.
The correlation of Cogent Communications 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 Cogent Communications moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cogent Communications 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 Cogent Communications 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 Cogent Communications position
In addition to having Cogent Communications 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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To fully project Cogent Communications' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Cogent Communications 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 Cogent Communications' income statement, its balance sheet, and the statement of cash flows.