Equifax Current Valuation vs. Net Income
| EFX Stock | EUR 258.00 4.00 1.57% |
For Equifax profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Equifax to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Equifax utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Equifax's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Equifax over time as well as its relative position and ranking within its peers.
Equifax |
Equifax Net Income vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Equifax's current stock value. Our valuation model uses many indicators to compare Equifax value to that of its competitors to determine the firm's financial worth. Equifax is rated as one of the top companies in current valuation category among its peers. It also is one of the top stocks in net income category among its peers making up about 0.02 of Net Income per Current Valuation. The ratio of Current Valuation to Net Income for Equifax is roughly 40.57 . 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 Equifax's earnings, one of the primary drivers of an investment's value.Equifax Current Valuation vs. Competition
Equifax 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 Business Services industry is currently estimated at about 58.33 Billion. Equifax totals roughly 28.24 Billion in current valuation claiming about 48% of stocks in Business Services industry.
Equifax Net Income 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.
Equifax |
| = | 28.24 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.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Equifax |
| = | 696.2 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Equifax Net Income Comparison
Equifax is currently under evaluation in net income category among its peers.
Equifax Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Equifax, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Equifax will eventually generate negative long term returns. The profitability progress is the general direction of Equifax's change in net profit over the period of time. It can combine multiple indicators of Equifax, 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.
Equifax Inc. provides information solutions and human resources business process outsourcing services for businesses, governments, and consumers. Equifax Inc. was founded in 1899 and is headquartered in Atlanta, Georgia. EQUIFAX INC operates under Business Services classification in Germany and is traded on Frankfurt Stock Exchange. It employs 11000 people.
Equifax Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Equifax. 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 Equifax 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 Equifax's important profitability drivers and their relationship over time.
Use Equifax 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 Equifax 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 Equifax will appreciate offsetting losses from the drop in the long position's value.Equifax Pair Trading
Equifax Pair Trading Analysis
The ability to find closely correlated positions to Equifax could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Equifax 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 Equifax - 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 Equifax to buy it.
The correlation of Equifax 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 Equifax moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Equifax 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 Equifax 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 Equifax position
In addition to having Equifax 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 Millennials Best Thematic Idea Now
Millennials Best
Companies or funds that provide products or services that appeal to the generation of millennials and that are expected to experience growth in the next 5 years. The millennial generation usually refers to the demographic population that were born between 1980 to 2000. The Millennials Best theme has 77 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 Millennials Best Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Information and Resources on Investing in Equifax Stock
When determining whether Equifax offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Equifax's 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 Equifax Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Equifax Stock:Check out Investing Opportunities. For more detail on how to invest in Equifax Stock please use our How to Invest in Equifax guide.You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
To fully project Equifax's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Equifax 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 Equifax's income statement, its balance sheet, and the statement of cash flows.