Entergy EBITDA vs. Current Valuation
| ETY Stock | EUR 71.50 1.00 1.42% |
For Entergy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Entergy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Entergy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Entergy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Entergy over time as well as its relative position and ranking within its peers.
Entergy |
Entergy Current Valuation vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Entergy's current stock value. Our valuation model uses many indicators to compare Entergy value to that of its competitors to determine the firm's financial worth. Entergy is rated below average in ebitda category among its peers. It is rated below average in current valuation category among its peers reporting about 11.55 of Current Valuation per EBITDA. 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 Entergy's earnings, one of the primary drivers of an investment's value.Entergy Current Valuation vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Entergy |
| = | 4.24 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
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.
Entergy |
| = | 48.95 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.
Entergy Current Valuation vs Competition
Entergy is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Utilities - Diversified industry is currently estimated at about 598.01 Billion. Entergy holds roughly 48.95 Billion in current valuation claiming about 8% of Utilities - Diversified industry.
Entergy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Entergy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Entergy will eventually generate negative long term returns. The profitability progress is the general direction of Entergy's change in net profit over the period of time. It can combine multiple indicators of Entergy, 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.
Entergy Corporation, together with its subsidiaries, engages in the production and distribution of electricity in the United States. Entergy Corporation was founded in 1949 and is based in New Orleans, Louisiana. Entergy operates under Utilities - Diversified classification in Germany and is traded on Frankfurt Stock Exchange. It employs 13700 people.
Entergy Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Entergy. 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 Entergy 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 Entergy's important profitability drivers and their relationship over time.
Use Entergy 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 Entergy 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 Entergy will appreciate offsetting losses from the drop in the long position's value.Entergy Pair Trading
Entergy Pair Trading Analysis
The ability to find closely correlated positions to Entergy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Entergy 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 Entergy - 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 Entergy to buy it.
The correlation of Entergy 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 Entergy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Entergy 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 Entergy 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 Entergy position
In addition to having Entergy 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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Additional Information and Resources on Investing in Entergy Stock
When determining whether Entergy is a strong investment it is important to analyze Entergy's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Entergy's future performance. For an informed investment choice regarding Entergy Stock, refer to the following important reports:Check out Investing Opportunities. For more detail on how to invest in Entergy Stock please use our How to Invest in Entergy guide.You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
To fully project Entergy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Entergy 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 Entergy's income statement, its balance sheet, and the statement of cash flows.