Darden Restaurants Current Valuation vs. Revenue
| DDN Stock | EUR 175.35 21.80 14.20% |
For Darden Restaurants profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Darden Restaurants to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Darden Restaurants utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Darden Restaurants's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Darden Restaurants over time as well as its relative position and ranking within its peers.
Darden |
Darden Restaurants Revenue vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Darden Restaurants's current stock value. Our valuation model uses many indicators to compare Darden Restaurants value to that of its competitors to determine the firm's financial worth. Darden Restaurants is rated as one of the top companies in current valuation category among its peers. It also is rated as one of the top companies in revenue category among its peers totaling about 0.46 of Revenue per Current Valuation. The ratio of Current Valuation to Revenue for Darden Restaurants is roughly 2.16 . 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 Darden Restaurants' earnings, one of the primary drivers of an investment's value.Darden Current Valuation vs. Competition
Darden Restaurants is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Restaurants industry is currently estimated at about 64.7 Billion. Darden Restaurants totals roughly 20.76 Billion in current valuation claiming about 32% of equities listed under Restaurants industry.
Darden Revenue 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.
Darden Restaurants |
| = | 20.76 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.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Darden Restaurants |
| = | 9.63 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Darden Revenue vs Competition
Darden Restaurants is rated as one of the top companies in revenue category among its peers. Market size based on revenue of Restaurants industry is currently estimated at about 756.25 Billion. Darden Restaurants claims roughly 9.63 Billion in revenue contributing just under 2% to equities listed under Restaurants industry.
Darden Restaurants Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Darden Restaurants, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Darden Restaurants will eventually generate negative long term returns. The profitability progress is the general direction of Darden Restaurants' change in net profit over the period of time. It can combine multiple indicators of Darden Restaurants, 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.
Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada. The company was founded in 1968 and is based in Orlando, Florida. Darden Restaurants operates under Restaurants classification in Germany and is traded on Frankfurt Stock Exchange. It employs 185000 people.
Darden Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Darden Restaurants. 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 Darden Restaurants 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 Darden Restaurants' important profitability drivers and their relationship over time.
Use Darden Restaurants 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 Darden Restaurants 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 Darden Restaurants will appreciate offsetting losses from the drop in the long position's value.Darden Restaurants Pair Trading
Darden Restaurants Pair Trading Analysis
The ability to find closely correlated positions to Darden Restaurants could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Darden Restaurants 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 Darden Restaurants - 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 Darden Restaurants to buy it.
The correlation of Darden Restaurants 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 Darden Restaurants moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Darden Restaurants 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 Darden Restaurants 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 Darden Restaurants position
In addition to having Darden Restaurants 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 Asset Allocation ETFs Thematic Idea Now
Asset Allocation ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Asset Allocation ETFs theme has 145 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 Asset Allocation ETFs Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Darden Stock
When determining whether Darden Restaurants offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Darden Restaurants' 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 Darden Restaurants Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Darden Restaurants Stock:Check out Investing Opportunities. For more detail on how to invest in Darden Stock please use our How to Invest in Darden Restaurants guide.You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
To fully project Darden Restaurants' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Darden Restaurants 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 Darden Restaurants' income statement, its balance sheet, and the statement of cash flows.