Reckitt Benckiser Revenue vs. Current Valuation

RBGPF Stock  USD 60.50  0.50  0.82%   
Considering Reckitt Benckiser's profitability and operating efficiency indicators, Reckitt Benckiser Group may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Reckitt Benckiser's ability to earn profits and add value for shareholders.
For Reckitt Benckiser profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Reckitt Benckiser to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Reckitt Benckiser Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Reckitt Benckiser's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Reckitt Benckiser Group over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Reckitt Benckiser's value and its price as these two are different measures arrived at by different means. Investors typically determine if Reckitt Benckiser is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Reckitt Benckiser's 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.

Reckitt Benckiser Current Valuation vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Reckitt Benckiser's current stock value. Our valuation model uses many indicators to compare Reckitt Benckiser value to that of its competitors to determine the firm's financial worth.
Reckitt Benckiser Group is rated below average in revenue category among its peers. It also is rated below average in current valuation category among its peers reporting about  4.66  of Current Valuation per Revenue. 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 Reckitt Benckiser's earnings, one of the primary drivers of an investment's value.

Reckitt Revenue vs. Competition

Reckitt Benckiser Group is rated below average in revenue category among its peers. Market size based on revenue of Household & Personal Products industry is at this time estimated at about 1.45 Trillion. Reckitt Benckiser maintains roughly 13.23 Billion in revenue contributing less than 1% to equities under Household & Personal Products industry.

Reckitt Current Valuation vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Reckitt Benckiser

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
13.23 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
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.

Reckitt Benckiser

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
61.62 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.

Reckitt Current Valuation vs Competition

Reckitt Benckiser Group is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Household & Personal Products industry is at this time estimated at about 1.55 Trillion. Reckitt Benckiser holds roughly 61.62 Billion in current valuation claiming about 4% of equities under Household & Personal Products industry.

Reckitt Benckiser Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Reckitt Benckiser, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Reckitt Benckiser will eventually generate negative long term returns. The profitability progress is the general direction of Reckitt Benckiser's change in net profit over the period of time. It can combine multiple indicators of Reckitt Benckiser, 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.
Reckitt Benckiser Group plc manufactures and sells health, hygiene, and nutrition products in the United Kingdom, the United States, China, India, and internationally. The company was founded in 1819 and is headquartered in Slough, the United Kingdom. Reckitt Benckiser operates under Household Personal Products classification in the United States and is traded on OTC Exchange. It employs 40000 people.

Reckitt Profitability Driver Comparison

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

Use Reckitt Benckiser 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 Reckitt Benckiser 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 Reckitt Benckiser will appreciate offsetting losses from the drop in the long position's value.

Reckitt Benckiser Pair Trading

Reckitt Benckiser Group Pair Trading Analysis

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

In addition to having Reckitt Benckiser 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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Other Information on Investing in Reckitt Pink Sheet

To fully project Reckitt Benckiser's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Reckitt Benckiser 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 Reckitt Benckiser's income statement, its balance sheet, and the statement of cash flows.
Potential Reckitt Benckiser investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Reckitt Benckiser investors may work on each financial statement separately, they are all related. The changes in Reckitt Benckiser's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Reckitt Benckiser's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.