Gudang Garam Current Valuation vs. Net Income

GGRM Stock  IDR 13,500  100.00  0.74%   
Taking into consideration Gudang Garam's profitability measurements, Gudang Garam Tbk 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 Gudang Garam's ability to earn profits and add value for shareholders.
For Gudang Garam profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Gudang Garam to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Gudang Garam Tbk utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Gudang Garam's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Gudang Garam Tbk over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Please note, there is a significant difference between Gudang Garam's value and its price as these two are different measures arrived at by different means. Investors typically determine if Gudang Garam is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Gudang Garam'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.

Gudang Garam Tbk Net Income vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Gudang Garam's current stock value. Our valuation model uses many indicators to compare Gudang Garam value to that of its competitors to determine the firm's financial worth.
Gudang Garam Tbk is rated below average in current valuation category among its peers. It is rated # 5 in net income category among its peers making up about  0.16  of Net Income per Current Valuation. The ratio of Current Valuation to Net Income for Gudang Garam Tbk is roughly  6.20 . 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 Gudang Garam's earnings, one of the primary drivers of an investment's value.

Gudang Current Valuation vs. Competition

Gudang Garam Tbk is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Consumer Staples industry is currently estimated at about 719.44 Trillion. Gudang Garam holds roughly 34.76 Trillion in current valuation claiming about 5% of stocks in Consumer Staples industry.

Gudang 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.

Gudang Garam

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
34.76 T
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.

Gudang Garam

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
5.61 T
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.

Gudang Net Income Comparison

Gudang Garam is currently under evaluation in net income category among its peers.

Gudang Garam Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Gudang Garam, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Gudang Garam will eventually generate negative long term returns. The profitability progress is the general direction of Gudang Garam's change in net profit over the period of time. It can combine multiple indicators of Gudang Garam, 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.
PT Gudang Garam Tbk produces and sells cigarettes in Indonesia and internationally. PT Gudang Garam Tbk is a subsidiary of PT Suryaduta Investama. Gudang Garam operates under Tobacco classification in Indonesia and is traded on Jakarta Stock Exchange. It employs 34974 people.

Gudang Profitability Driver Comparison

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

Use Gudang Garam 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 Gudang Garam 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 Gudang Garam will appreciate offsetting losses from the drop in the long position's value.

Gudang Garam Pair Trading

Gudang Garam Tbk Pair Trading Analysis

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

In addition to having Gudang Garam 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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Run Real Estate Thematic Idea Now

Real Estate
Real Estate Theme
Publicly traded companies that are involved in real estate development, property maintenance and management of real estate investment trusts (REIT) funds. The Real Estate theme has 41 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 Real Estate Theme or any other thematic opportunities.
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Other Information on Investing in Gudang Stock

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