Genmab AS EBITDA vs. Current Valuation

GMAB Stock  DKK 1,528  3.00  0.20%   
Based on Genmab AS's profitability indicators, Genmab AS 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 Genmab AS's ability to earn profits and add value for shareholders.
For Genmab AS profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Genmab AS to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Genmab AS utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Genmab AS's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Genmab AS over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
To learn how to invest in Genmab Stock, please use our How to Invest in Genmab AS guide.
Please note, there is a significant difference between Genmab AS's value and its price as these two are different measures arrived at by different means. Investors typically determine if Genmab AS is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Genmab AS'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.

Genmab AS Current Valuation vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Genmab AS's current stock value. Our valuation model uses many indicators to compare Genmab AS value to that of its competitors to determine the firm's financial worth.
Genmab AS is one of the top stocks in ebitda category among its peers. It also is rated as one of the top companies in current valuation category among its peers reporting about  43.91  of Current Valuation per EBITDA. Comparative valuation analysis is a catch-all model that can be used if you cannot value Genmab AS by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Genmab AS's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Genmab 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.

Genmab AS

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
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.

Genmab AS

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
186.33 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.

Genmab Current Valuation vs Competition

Genmab AS 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 Biotechnology industry is currently estimated at about 545.85 Billion. Genmab AS totals roughly 186.33 Billion in current valuation claiming about 34% of stocks in Biotechnology industry.

Genmab AS Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Genmab AS, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Genmab AS will eventually generate negative long term returns. The profitability progress is the general direction of Genmab AS's change in net profit over the period of time. It can combine multiple indicators of Genmab AS, 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.
Genmab AS develops antibody therapeutics for the treatment of cancer and other diseases primarily in Denmark. Genmab AS was founded in 1999 and is headquartered in Copenhagen, Denmark. Genmab AS is traded on Copenhagen Stock Exchange in Denmark.

Genmab Profitability Driver Comparison

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

Use Genmab AS 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 Genmab AS 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 Genmab AS will appreciate offsetting losses from the drop in the long position's value.

Genmab AS Pair Trading

Genmab AS Pair Trading Analysis

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

In addition to having Genmab AS 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 Small Growth Funds Thematic Idea Now

Small Growth Funds
Small Growth Funds Theme
Funds or Etfs that invest in stocks of small to mid-sized companies with above-average risk and growth rate that usually reinvest their earnings back into business. The Small Growth Funds theme has 37 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 Small Growth Funds Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Genmab Stock

When determining whether Genmab AS offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Genmab AS'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 Genmab As Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Genmab As Stock:
Check out Risk vs Return Analysis.
To learn how to invest in Genmab Stock, please use our How to Invest in Genmab AS guide.
You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
To fully project Genmab AS's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Genmab AS 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 Genmab AS's income statement, its balance sheet, and the statement of cash flows.
Potential Genmab AS investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Genmab AS investors may work on each financial statement separately, they are all related. The changes in Genmab AS's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Genmab AS'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.