Cargotec Oyj Current Valuation vs. Price To Book

CGCBV Stock  EUR 53.86  0.33  0.61%   
Taking into consideration Cargotec Oyj's profitability measurements, Cargotec Oyj 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 Cargotec Oyj's ability to earn profits and add value for shareholders.
For Cargotec Oyj profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cargotec Oyj to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cargotec Oyj utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cargotec Oyj's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cargotec Oyj 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 Cargotec Oyj's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cargotec Oyj is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cargotec Oyj'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.

Cargotec Oyj Price To Book vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Cargotec Oyj's current stock value. Our valuation model uses many indicators to compare Cargotec Oyj value to that of its competitors to determine the firm's financial worth.
Cargotec Oyj is rated second in current valuation category among its peers. It also is rated second in price to book category among its peers . The ratio of Current Valuation to Price To Book for Cargotec Oyj is about  1,882,859,676 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Cargotec Oyj by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Cargotec Oyj'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.

Cargotec Current Valuation vs. Competition

Cargotec Oyj is rated second in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is currently estimated at about 298.16 Billion. Cargotec Oyj claims roughly 3.16 Billion in current valuation contributing just under 2% to equities under Industrials industry.

Cargotec Price To Book 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.

Cargotec Oyj

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
3.16 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.
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.

Cargotec Oyj

P/B

 = 

MV Per Share

BV Per Share

 = 
1.68 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.

Cargotec Price To Book Comparison

Cargotec Oyj is currently under evaluation in price to book category among its peers.

Cargotec Oyj Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Cargotec Oyj, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cargotec Oyj will eventually generate negative long term returns. The profitability progress is the general direction of Cargotec Oyj's change in net profit over the period of time. It can combine multiple indicators of Cargotec Oyj, 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.
Cargotec Corporation provides cargo and load handling solutions worldwide. The company serves ports, terminals, distribution centers, fleet operators, single truck owners, and small fleet owners. Cargotec Oyj operates under Power Nuclear And Heavy Engineering classification in Finland and is traded on Helsinki Exchange. It employs 12335 people.

Cargotec Profitability Driver Comparison

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

Use Cargotec Oyj 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 Cargotec Oyj 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 Cargotec Oyj will appreciate offsetting losses from the drop in the long position's value.

Cargotec Oyj Pair Trading

Cargotec Oyj Pair Trading Analysis

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

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In addition to having Cargotec Oyj 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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Casinos Theme
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Other Information on Investing in Cargotec Stock

To fully project Cargotec Oyj's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Cargotec Oyj 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 Cargotec Oyj's income statement, its balance sheet, and the statement of cash flows.
Potential Cargotec Oyj investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Cargotec Oyj investors may work on each financial statement separately, they are all related. The changes in Cargotec Oyj's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Cargotec Oyj's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.