Diageo Plc Price To Earning vs. Cash Per Share
| GUI Stock | EUR 30.20 0.07 0.23% |
For Diageo Plc profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Diageo Plc to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Diageo plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Diageo Plc's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Diageo plc over time as well as its relative position and ranking within its peers.
Diageo |
Diageo plc Cash Per Share vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Diageo Plc's current stock value. Our valuation model uses many indicators to compare Diageo Plc value to that of its competitors to determine the firm's financial worth. Diageo plc is rated # 3 in price to earning category among its peers. It is rated # 4 in cash per share category among its peers fabricating about 0.02 of Cash Per Share per Price To Earning. The ratio of Price To Earning to Cash Per Share for Diageo plc is roughly 63.46 . 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 Diageo Plc's earnings, one of the primary drivers of an investment's value.Diageo Cash Per Share 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.
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| = | 77.42 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 per Share is a ratio of current cash on hands or in the banks of the company to a total number of shares outstanding. It is used to determine a firm's liquidity and is a good indicator of the overall financial health of a company. Value investors often compare this ratio to the current stock quote, and if it exceeds the stock price they would invest in it.
Diageo Plc |
| = | 1.22 X |
Companies with high Cash per Share ratio will be considered as an attractive investment by most investors. In most industries if you can single out an equity instrument trading below its cash per share value, you have a bargain and should consider buying it. Finding the stocks traded below their cash value, therefore, can be a good starting point for investors using strategies based on fundamentals.
Diageo Cash Per Share Comparison
Diageo Plc is rated # 3 in cash per share category among its peers.
Diageo Plc Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Diageo Plc, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Diageo Plc will eventually generate negative long term returns. The profitability progress is the general direction of Diageo Plc's change in net profit over the period of time. It can combine multiple indicators of Diageo Plc, 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.
Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages. The company was incorporated in 1886 and is headquartered in London, the United Kingdom. DIAGEO PLC operates under BeveragesWineries Distilleries classification in Germany and is traded on Frankfurt Stock Exchange. It employs 27788 people.
Diageo Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Diageo Plc. 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 Diageo Plc 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 Diageo Plc's important profitability drivers and their relationship over time.
Use Diageo Plc 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 Diageo Plc 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 Diageo Plc will appreciate offsetting losses from the drop in the long position's value.Diageo Plc Pair Trading
Diageo plc Pair Trading Analysis
The ability to find closely correlated positions to Diageo Plc could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Diageo Plc 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 Diageo Plc - 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 Diageo plc to buy it.
The correlation of Diageo Plc 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 Diageo Plc moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Diageo plc 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 Diageo Plc 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 Diageo Plc position
In addition to having Diageo Plc 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 Diageo Stock
To fully project Diageo Plc's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Diageo plc 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 Diageo Plc's income statement, its balance sheet, and the statement of cash flows.