Intercontinental Net Income vs. EBITDA
| IC2 Stock | EUR 143.62 0.26 0.18% |
For Intercontinental profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Intercontinental to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Intercontinental Exchange utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Intercontinental's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Intercontinental Exchange over time as well as its relative position and ranking within its peers.
Intercontinental |
Intercontinental Exchange EBITDA vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Intercontinental's current stock value. Our valuation model uses many indicators to compare Intercontinental value to that of its competitors to determine the firm's financial worth. Intercontinental Exchange is rated fourth overall in net income category among its peers. It also is rated fourth overall in ebitda category among its peers totaling about 2.39 of EBITDA per Net Income. 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 Intercontinental's earnings, one of the primary drivers of an investment's value.Intercontinental EBITDA vs. Net Income
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.
Intercontinental |
| = | 1.45 B |
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.
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.
Intercontinental |
| = | 3.46 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.
Intercontinental EBITDA Comparison
Intercontinental is rated third overall in ebitda category among its peers.
Intercontinental Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Intercontinental, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Intercontinental will eventually generate negative long term returns. The profitability progress is the general direction of Intercontinental's change in net profit over the period of time. It can combine multiple indicators of Intercontinental, 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.
Intercontinental Exchange, Inc. operates regulated exchanges, clearing houses, and listings venues for commodity, financial, fixed income, and equity markets in the United States, the United Kingdom, European Union, Asia, Israel, and Canada. Intercontinental Exchange, Inc. was founded in 2000 and is headquartered in Atlanta, Georgia. INTERCONTINENTAL operates under Financial Exchanges classification in Germany and is traded on Frankfurt Stock Exchange. It employs 5090 people.
Intercontinental Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Intercontinental. 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 Intercontinental 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 Intercontinental's important profitability drivers and their relationship over time.
Use Intercontinental 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 Intercontinental 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 Intercontinental will appreciate offsetting losses from the drop in the long position's value.Intercontinental Pair Trading
Intercontinental Exchange Pair Trading Analysis
The ability to find closely correlated positions to Intercontinental could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Intercontinental 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 Intercontinental - 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 Intercontinental Exchange to buy it.
The correlation of Intercontinental 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 Intercontinental moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Intercontinental Exchange 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 Intercontinental 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 Intercontinental position
In addition to having Intercontinental 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 Information and Resources on Investing in Intercontinental Stock
When determining whether Intercontinental Exchange is a strong investment it is important to analyze Intercontinental's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Intercontinental's future performance. For an informed investment choice regarding Intercontinental Stock, refer to the following important reports:Check out Risk vs Return Analysis. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
To fully project Intercontinental's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Intercontinental Exchange 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 Intercontinental's income statement, its balance sheet, and the statement of cash flows.