Nestl SA Current Valuation vs. Net Income
| NESN Stock | CHF 76.60 0.12 0.16% |
For Nestl SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nestl SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nestl SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nestl SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nestl SA over time as well as its relative position and ranking within its peers.
Nestl |
Nestl SA Net Income vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Nestl SA's current stock value. Our valuation model uses many indicators to compare Nestl SA value to that of its competitors to determine the firm's financial worth. Nestl SA is rated top company in current valuation category among its peers. It also is considered to be number one stock in net income category among its peers making up about 0.05 of Net Income per Current Valuation. The ratio of Current Valuation to Net Income for Nestl SA is roughly 20.63 . 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 Nestl SA's earnings, one of the primary drivers of an investment's value.Nestl Current Valuation vs. Competition
Nestl SA is rated top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Packaged Foods industry is now estimated at about 959.84 Billion. Nestl SA totals roughly 348.69 Billion in current valuation claiming about 36% of equities listed under Packaged Foods industry.
Nestl Net Income 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.
Nestl SA |
| = | 348.69 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.
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.
Nestl SA |
| = | 16.91 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.
Nestl Net Income Comparison
Nestl SA is currently under evaluation in net income category among its peers.
Nestl SA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Nestl SA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nestl SA will eventually generate negative long term returns. The profitability progress is the general direction of Nestl SA's change in net profit over the period of time. It can combine multiple indicators of Nestl SA, 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.
Nestl S.A., together with its subsidiaries, operates as a food and beverage company. The company was founded in 1866 and is headquartered in Vevey, Switzerland. NESTLE N is traded on Switzerland Exchange in Switzerland.
Nestl Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Nestl SA. 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 Nestl SA 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 Nestl SA's important profitability drivers and their relationship over time.
Use Nestl SA 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 Nestl SA 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 Nestl SA will appreciate offsetting losses from the drop in the long position's value.Nestl SA Pair Trading
Nestl SA Pair Trading Analysis
The ability to find closely correlated positions to Nestl SA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nestl SA 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 Nestl SA - 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 Nestl SA to buy it.
The correlation of Nestl SA 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 Nestl SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nestl SA 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 Nestl SA 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 Nestl SA position
In addition to having Nestl SA 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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Treasury ETFs
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Additional Tools for Nestl Stock Analysis
When running Nestl SA's price analysis, check to measure Nestl SA's 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 Nestl SA is operating at the current time. Most of Nestl SA's value examination focuses on studying past and present price action to predict the probability of Nestl SA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Nestl SA's price. Additionally, you may evaluate how the addition of Nestl SA to your portfolios can decrease your overall portfolio volatility.