Wolters Kluwer Net Income vs. Price To Earning

WOSB Stock  EUR 161.55  1.60  1.00%   
Considering Wolters Kluwer's profitability and operating efficiency indicators, Wolters Kluwer NV may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Wolters Kluwer's ability to earn profits and add value for shareholders.
For Wolters Kluwer profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Wolters Kluwer to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Wolters Kluwer NV utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Wolters Kluwer's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Wolters Kluwer NV 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 Wolters Kluwer's value and its price as these two are different measures arrived at by different means. Investors typically determine if Wolters Kluwer is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Wolters Kluwer'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.

Wolters Kluwer NV Price To Earning vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Wolters Kluwer's current stock value. Our valuation model uses many indicators to compare Wolters Kluwer value to that of its competitors to determine the firm's financial worth.
Wolters Kluwer NV is rated below average in net income category among its peers. It also is rated below average in price to earning category among its peers . The ratio of Net Income to Price To Earning for Wolters Kluwer NV is about  23,790,850 . 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 Wolters Kluwer's earnings, one of the primary drivers of an investment's value.

Wolters Price To Earning vs. Net Income

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.

Wolters Kluwer

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
728 M
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.
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.

Wolters Kluwer

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
30.60 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.

Wolters Price To Earning Comparison

Wolters Kluwer is rated fifth in price to earning category among its peers.

Wolters Kluwer Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Wolters Kluwer, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Wolters Kluwer will eventually generate negative long term returns. The profitability progress is the general direction of Wolters Kluwer's change in net profit over the period of time. It can combine multiple indicators of Wolters Kluwer, 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.
Wolters Kluwer N.V., together with its subsidiaries, provides professional information, software solutions, and services in Europe, North America, the Asia Pacific, and internationally. Wolters Kluwer N.V. was founded in 1836 and is headquartered in Alphen aan den Rijn, the Netherlands. WOLTERS KLUWER operates under Publishing classification in Germany and is traded on Frankfurt Stock Exchange. It employs 18116 people.

Wolters Profitability Driver Comparison

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

Use Wolters Kluwer 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 Wolters Kluwer 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 Wolters Kluwer will appreciate offsetting losses from the drop in the long position's value.

Wolters Kluwer Pair Trading

Wolters Kluwer NV Pair Trading Analysis

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

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Other Information on Investing in Wolters Stock

To fully project Wolters Kluwer's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Wolters Kluwer NV 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 Wolters Kluwer's income statement, its balance sheet, and the statement of cash flows.
Potential Wolters Kluwer investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Wolters Kluwer investors may work on each financial statement separately, they are all related. The changes in Wolters Kluwer's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Wolters Kluwer'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.