LOreal SA Price To Earning vs. Current Valuation
| OR Stock | EUR 453.40 5.85 1.31% |
For LOreal SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of LOreal SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well LOreal SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between LOreal SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of LOreal SA over time as well as its relative position and ranking within its peers.
LOreal |
LOreal SA Current Valuation vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining LOreal SA's current stock value. Our valuation model uses many indicators to compare LOreal SA value to that of its competitors to determine the firm's financial worth. LOreal SA is considered to be number one stock in price to earning category among related companies. It is rated top company in current valuation category among related companies reporting about 3,585,862,966 of Current Valuation per Price To Earning. Comparative valuation analysis is a catch-all model that can be used if you cannot value LOreal SA by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for LOreal SA's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. 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 LOreal SA's earnings, one of the primary drivers of an investment's value.LOreal Current Valuation 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.
LOreal SA |
| = | 54.38 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.
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.
LOreal SA |
| = | 195 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.
LOreal Current Valuation vs Competition
LOreal SA is rated top company in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Household & Personal Products industry is now estimated at about 918.63 Billion. LOreal SA totals roughly 195 Billion in current valuation claiming about 21% of equities under Household & Personal Products industry.
LOreal SA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in LOreal SA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, LOreal SA will eventually generate negative long term returns. The profitability progress is the general direction of LOreal SA's change in net profit over the period of time. It can combine multiple indicators of LOreal 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.
LOral S.A., through its subsidiaries, manufactures and sells cosmetic products for women and men worldwide. LOral S.A. was founded in 1909 and is headquartered in Clichy, France. LOREAL operates under Cosmetics Jewellery And Luxury Products classification in France and is traded on Paris Stock Exchange. It employs 85412 people.
LOreal Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on LOreal 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 LOreal 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 LOreal SA's important profitability drivers and their relationship over time.
Use LOreal 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 LOreal 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 LOreal SA will appreciate offsetting losses from the drop in the long position's value.LOreal SA Pair Trading
LOreal SA Pair Trading Analysis
The ability to find closely correlated positions to LOreal 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 LOreal 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 LOreal 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 LOreal SA to buy it.
The correlation of LOreal 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 LOreal SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if LOreal 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 LOreal 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 LOreal SA position
In addition to having LOreal 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?
Run Management Thematic Idea Now
Management
Companies providing management services to businesses. The Management theme has 46 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Management Theme or any other thematic opportunities.
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Check out Your Equity Center. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Complementary Tools for LOreal Stock analysis
When running LOreal SA's price analysis, check to measure LOreal 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 LOreal SA is operating at the current time. Most of LOreal SA's value examination focuses on studying past and present price action to predict the probability of LOreal 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 LOreal SA's price. Additionally, you may evaluate how the addition of LOreal SA to your portfolios can decrease your overall portfolio volatility.
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To fully project LOreal SA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of LOreal SA 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 LOreal SA's income statement, its balance sheet, and the statement of cash flows.