Deutsche Telekom Return On Equity vs. Current Valuation

DTEGF Stock  USD 31.69  0.45  1.40%   
Taking into consideration Deutsche Telekom's profitability measurements, Deutsche Telekom AG 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 Deutsche Telekom's ability to earn profits and add value for shareholders.
For Deutsche Telekom profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Deutsche Telekom to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Deutsche Telekom AG utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Deutsche Telekom's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Deutsche Telekom AG 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 Deutsche Telekom's value and its price as these two are different measures arrived at by different means. Investors typically determine if Deutsche Telekom is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Deutsche Telekom'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.

Deutsche Telekom Current Valuation vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Deutsche Telekom's current stock value. Our valuation model uses many indicators to compare Deutsche Telekom value to that of its competitors to determine the firm's financial worth.
Deutsche Telekom AG is one of the top stocks in return on equity category among its peers. It also is rated as one of the top companies in current valuation category among its peers reporting about  2,657,787,542,334  of Current Valuation per Return On Equity. 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 Deutsche Telekom's earnings, one of the primary drivers of an investment's value.

Deutsche Current Valuation vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Deutsche Telekom

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0964
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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.

Deutsche Telekom

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
256.21 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.

Deutsche Current Valuation vs Competition

Deutsche Telekom AG 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 Telecom Services industry is currently estimated at about 772.37 Billion. Deutsche Telekom totals roughly 256.21 Billion in current valuation claiming about 33% of equities listed under Telecom Services industry.

Deutsche Telekom Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Deutsche Telekom, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Deutsche Telekom will eventually generate negative long term returns. The profitability progress is the general direction of Deutsche Telekom's change in net profit over the period of time. It can combine multiple indicators of Deutsche Telekom, 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.
Deutsche Telekom AG, together with its subsidiaries, provides integrated telecommunication services. The company was founded in 1995 and is headquartered in Bonn, Germany. DEUTSCHE TELEKOM operates under Telecom Services classification in the United States and is traded on OTC Exchange. It employs 210595 people.

Deutsche Profitability Driver Comparison

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

Use Deutsche Telekom 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 Deutsche Telekom 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 Deutsche Telekom will appreciate offsetting losses from the drop in the long position's value.

Deutsche Telekom Pair Trading

Deutsche Telekom AG Pair Trading Analysis

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

Use Investing Themes to Complement your Deutsche Telekom position

In addition to having Deutsche Telekom 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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Robots And Drones
Robots And Drones Theme
Large technology companies that are involved in development and manufacturing of drones, robots, or robotic equipment across mechanical engineering, electrical engineering, mathematics and computer science fields. Drones and robotics are projected to significantly grow in demand in the next 5 years. The Robots And Drones theme has 42 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 Robots And Drones Theme or any other thematic opportunities.
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Other Information on Investing in Deutsche OTC Stock

To fully project Deutsche Telekom's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Deutsche Telekom 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 Deutsche Telekom's income statement, its balance sheet, and the statement of cash flows.
Potential Deutsche Telekom investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Deutsche Telekom investors may work on each financial statement separately, they are all related. The changes in Deutsche Telekom's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Deutsche Telekom'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.