Liquidity Services Current Valuation vs. Price To Earning

LQDT Stock  USD 35.54  1.88  5.59%   
Based on Liquidity Services' profitability indicators, Liquidity Services is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Liquidity Services' ability to earn profits and add value for shareholders. At this time, Liquidity Services' Price To Sales Ratio is comparatively stable compared to the past year. EV To Sales is likely to gain to 1.79 in 2024, whereas Days Of Sales Outstanding is likely to drop 9.80 in 2024. At this time, Liquidity Services' Net Income Per Share is comparatively stable compared to the past year. Income Quality is likely to gain to 3.69 in 2024, despite the fact that Change To Netincome is likely to grow to (8.2 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.720.5097
Significantly Up
Slightly volatile
For Liquidity Services profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Liquidity Services to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Liquidity Services utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Liquidity Services's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Liquidity Services over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
For more information on how to buy Liquidity Stock please use our How to Invest in Liquidity Services guide.
Is Commercial Services & Supplies 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 Liquidity Services. If investors know Liquidity 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 Liquidity Services listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.1)
Earnings Share
0.63
Revenue Per Share
11.022
Quarterly Revenue Growth
0.159
Return On Assets
0.0524
The market value of Liquidity Services is measured differently than its book value, which is the value of Liquidity that is recorded on the company's balance sheet. Investors also form their own opinion of Liquidity Services' value that differs from its market value or its book value, called intrinsic value, which is Liquidity Services' 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 Liquidity Services' market value can be influenced by many factors that don't directly affect Liquidity Services' 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 Liquidity Services' value and its price as these two are different measures arrived at by different means. Investors typically determine if Liquidity Services is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Liquidity Services' 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.

Liquidity Services Price To Earning vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Liquidity Services's current stock value. Our valuation model uses many indicators to compare Liquidity Services value to that of its competitors to determine the firm's financial worth.
Liquidity Services is considered the number one company in current valuation category among its peers. It also is currently regarded as number one stock in price to earning category among its peers . The ratio of Current Valuation to Price To Earning for Liquidity Services is about  10,259,403 . Comparative valuation analysis is a catch-all technique that is used if you cannot value Liquidity Services by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Liquidity Current Valuation vs. Competition

Liquidity Services is considered the number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is now estimated at about 64.58 Billion. Liquidity Services claims roughly 951.25 Million in current valuation contributing just under 2% to equities under Industrials industry.

Liquidity Price To Earning 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.

Liquidity Services

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
951.25 M
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.
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.

Liquidity Services

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
92.72 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.

Liquidity Price To Earning Comparison

Liquidity Services is currently under evaluation in price to earning category among its peers.

Liquidity Services Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Liquidity Services, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Liquidity Services will eventually generate negative long term returns. The profitability progress is the general direction of Liquidity Services' change in net profit over the period of time. It can combine multiple indicators of Liquidity Services, 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-9.4 M-9 M
Operating Income23.4 M24.6 M
Income Before Tax27.3 M28.6 M
Total Other Income Expense Net3.9 MM
Net Income20 M21 M
Income Tax Expense7.3 M4.2 M
Net Income Applicable To Common Shares36.3 M38.1 M
Net Income From Continuing Ops24.1 M25.3 M
Interest Income3.3 M3.5 M
Net Interest Income3.3 M3.5 M
Change To Netincome-8.7 M-8.2 M
Net Income Per Share 0.66  0.69 
Income Quality 3.51  3.69 
Net Income Per E B T 0.73  0.65 

Liquidity Profitability Driver Comparison

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

Use Liquidity Services 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 Liquidity Services 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 Liquidity Services will appreciate offsetting losses from the drop in the long position's value.

Liquidity Services Pair Trading

Liquidity Services Pair Trading Analysis

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

In addition to having Liquidity Services 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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Size And Style ETFs
Size And Style ETFs Theme
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Additional Tools for Liquidity Stock Analysis

When running Liquidity Services' price analysis, check to measure Liquidity Services' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Liquidity Services is operating at the current time. Most of Liquidity Services' value examination focuses on studying past and present price action to predict the probability of Liquidity Services' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Liquidity Services' price. Additionally, you may evaluate how the addition of Liquidity Services to your portfolios can decrease your overall portfolio volatility.