Geberit AG Price To Earning vs. Cash And Equivalents
| GBRF Stock | EUR 54.00 1.00 1.82% |
For Geberit AG profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Geberit AG to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Geberit AG utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Geberit AG's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Geberit AG over time as well as its relative position and ranking within its peers.
Geberit |
Geberit AG Cash And Equivalents vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Geberit AG's current stock value. Our valuation model uses many indicators to compare Geberit AG value to that of its competitors to determine the firm's financial worth. Geberit AG is rated # 3 in price to earning category among its peers. It is rated below average in cash and equivalents category among its peers creating about 12,973,422 of Cash And Equivalents per Price To Earning. 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 Geberit AG's earnings, one of the primary drivers of an investment's value.Geberit Cash And Equivalents vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Geberit AG |
| = | 36.12 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Geberit AG |
| = | 468.6 M |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Geberit Cash And Equivalents Comparison
Geberit AG is rated # 5 in cash and equivalents category among its peers.
Geberit AG Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Geberit AG, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Geberit AG will eventually generate negative long term returns. The profitability progress is the general direction of Geberit AG's change in net profit over the period of time. It can combine multiple indicators of Geberit AG, 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.
Geberit AG develops, produces, and distributes sanitary products and systems for the residential and commercial construction industry worldwide. Geberit AG was founded in 1874 and is headquartered in Rapperswil-Jona, Switzerland. GEBERIT AG operates under Building Products Equipment classification in Germany and is traded on Frankfurt Stock Exchange. It employs 11745 people.
Geberit Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Geberit AG. 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 Geberit AG 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 Geberit AG's important profitability drivers and their relationship over time.
Use Geberit AG 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 Geberit AG 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 Geberit AG will appreciate offsetting losses from the drop in the long position's value.Geberit AG Pair Trading
Geberit AG Pair Trading Analysis
The ability to find closely correlated positions to Geberit AG could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Geberit AG 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 Geberit AG - 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 Geberit AG to buy it.
The correlation of Geberit AG 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 Geberit AG moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Geberit AG 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 Geberit AG 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 Geberit AG position
In addition to having Geberit AG 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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Other Information on Investing in Geberit Stock
To fully project Geberit AG's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Geberit AG 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 Geberit AG's income statement, its balance sheet, and the statement of cash flows.