Limbach Holdings Price To Earning vs. Price To Sales
| LMB Stock | USD 99.49 0.73 0.74% |
For Limbach Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Limbach Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Limbach Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Limbach Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Limbach Holdings over time as well as its relative position and ranking within its peers.
Limbach |
Is Construction space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Limbach Holdings. If investors know Limbach will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Limbach Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Limbach Holdings is measured differently than its book value, which is the value of Limbach that is recorded on the company's balance sheet. Investors also form their own opinion of Limbach Holdings' value that differs from its market value or its book value, called intrinsic value, which is Limbach Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Limbach Holdings' market value can be influenced by many factors that don't directly affect Limbach Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Limbach Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Limbach Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Limbach Holdings' 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.
Limbach Holdings Price To Sales vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Limbach Holdings's current stock value. Our valuation model uses many indicators to compare Limbach Holdings value to that of its competitors to determine the firm's financial worth. Limbach Holdings is rated below average in price to earning category among its peers. It is rated fourth overall in price to sales category among its peers fabricating about 0.14 of Price To Sales per Price To Earning. The ratio of Price To Earning to Price To Sales for Limbach Holdings is roughly 7.03 . 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 Limbach Holdings' earnings, one of the primary drivers of an investment's value.Limbach Price To Sales 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.
Limbach Holdings |
| = | 15.22 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.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Limbach Holdings |
| = | 2.17 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Limbach Price To Sales Comparison
Limbach Holdings is currently under evaluation in price to sales category among its peers.
Limbach Holdings Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Limbach Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Limbach Holdings will eventually generate negative long term returns. The profitability progress is the general direction of Limbach Holdings' change in net profit over the period of time. It can combine multiple indicators of Limbach Holdings, 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.
Limbach Holdings, Inc. operates as an integrated building systems solutions company in the United States. The company was founded in 1901 and is headquartered in Pittsburgh, Pennsylvania. Limbach Holdings operates under Engineering Construction classification in the United States and is traded on NASDAQ Exchange. It employs 1650 people.
Limbach Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Limbach Holdings. 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 Limbach Holdings 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 Limbach Holdings' important profitability drivers and their relationship over time.
Use Limbach Holdings 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 Limbach Holdings 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 Limbach Holdings will appreciate offsetting losses from the drop in the long position's value.Limbach Holdings Pair Trading
Limbach Holdings Pair Trading Analysis
The ability to find closely correlated positions to Limbach Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Limbach Holdings 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 Limbach Holdings - 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 Limbach Holdings to buy it.
The correlation of Limbach Holdings 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 Limbach Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Limbach Holdings 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 Limbach Holdings 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 Limbach Holdings position
In addition to having Limbach Holdings 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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Check out Correlation Analysis. For information on how to trade Limbach Stock refer to our How to Trade Limbach Stock guide.You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
To fully project Limbach Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Limbach Holdings 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 Limbach Holdings' income statement, its balance sheet, and the statement of cash flows.