Fresenius Medical Z Score vs. EBITDA
| FME Stock | EUR 45.02 0.43 0.95% |
For Fresenius Medical profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Fresenius Medical to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Fresenius Medical Care utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Fresenius Medical's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Fresenius Medical Care over time as well as its relative position and ranking within its peers.
Fresenius |
Fresenius Medical Care EBITDA vs. Z Score Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Fresenius Medical's current stock value. Our valuation model uses many indicators to compare Fresenius Medical value to that of its competitors to determine the firm's financial worth. Fresenius Medical Care is rated # 2 in z score category among its peers. It is one of the top stocks in ebitda category among its peers totaling about 2,848,150,833 of EBITDA per Z Score. 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 Fresenius Medical's earnings, one of the primary drivers of an investment's value.Fresenius EBITDA vs. Z Score
Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
Fresenius Medical |
| = | 1.2 |
To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
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.
Fresenius Medical |
| = | 3.42 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.
Fresenius EBITDA Comparison
Fresenius Medical is currently under evaluation in ebitda category among its peers.
Fresenius Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Fresenius Medical. 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 Fresenius Medical 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 Fresenius Medical's important profitability drivers and their relationship over time.
Use Fresenius Medical 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 Fresenius Medical 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 Fresenius Medical will appreciate offsetting losses from the drop in the long position's value.Fresenius Medical Pair Trading
Fresenius Medical Care Pair Trading Analysis
The ability to find closely correlated positions to Fresenius Medical could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Fresenius Medical 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 Fresenius Medical - 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 Fresenius Medical Care to buy it.
The correlation of Fresenius Medical 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 Fresenius Medical moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Fresenius Medical Care 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 Fresenius Medical 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 Fresenius Medical position
In addition to having Fresenius Medical 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 Tools for Fresenius Stock Analysis
When running Fresenius Medical's price analysis, check to measure Fresenius Medical's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Fresenius Medical is operating at the current time. Most of Fresenius Medical's value examination focuses on studying past and present price action to predict the probability of Fresenius Medical's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Fresenius Medical's price. Additionally, you may evaluate how the addition of Fresenius Medical to your portfolios can decrease your overall portfolio volatility.