Ramsay Health Price To Earning vs. Profit Margin
| RMY Stock | EUR 24.40 0.20 0.83% |
For Ramsay Health profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ramsay Health to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ramsay Health Care utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ramsay Health's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ramsay Health Care over time as well as its relative position and ranking within its peers.
Ramsay |
Ramsay Health Care Profit Margin vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Ramsay Health's current stock value. Our valuation model uses many indicators to compare Ramsay Health value to that of its competitors to determine the firm's financial worth. Ramsay Health Care is currently regarded as top stock in price to earning category among its peers. It also is currently regarded as top stock in profit margin category among its peers . The ratio of Price To Earning to Profit Margin for Ramsay Health Care is about 1,474 . 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 Ramsay Health's earnings, one of the primary drivers of an investment's value.Ramsay Profit Margin 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.
Ramsay Health |
| = | 32.73 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.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Ramsay Health |
| = | 0.02 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Ramsay Profit Margin Comparison
Ramsay Health is currently under evaluation in profit margin category among its peers.
Ramsay Health Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Ramsay Health, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ramsay Health will eventually generate negative long term returns. The profitability progress is the general direction of Ramsay Health's change in net profit over the period of time. It can combine multiple indicators of Ramsay Health, 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.
Ramsay Health Care Limited provides health care services to public and private patients. The company was founded in 1964 and is based in Sydney, Australia. RAMSAY HEALTH operates under Medical Care classification in Germany and is traded on Frankfurt Stock Exchange. It employs 60000 people.
Ramsay Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Ramsay Health. 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 Ramsay Health 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 Ramsay Health's important profitability drivers and their relationship over time.
Use Ramsay Health 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 Ramsay Health 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 Ramsay Health will appreciate offsetting losses from the drop in the long position's value.Ramsay Health Pair Trading
Ramsay Health Care Pair Trading Analysis
The ability to find closely correlated positions to Ramsay Health could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ramsay Health 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 Ramsay Health - 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 Ramsay Health Care to buy it.
The correlation of Ramsay Health 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 Ramsay Health moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ramsay Health Care 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 Ramsay Health 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 Ramsay Health position
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Other Information on Investing in Ramsay Stock
To fully project Ramsay Health's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ramsay Health Care 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 Ramsay Health's income statement, its balance sheet, and the statement of cash flows.