Nestle SA Price To Earning vs. Earnings Per Share
| NSRGF Stock | USD 100.60 1.01 0.99% |
For Nestle SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nestle SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nestle SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nestle SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nestle SA over time as well as its relative position and ranking within its peers.
Nestle |
Nestle SA Earnings Per Share vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Nestle SA's current stock value. Our valuation model uses many indicators to compare Nestle SA value to that of its competitors to determine the firm's financial worth. Nestle SA is considered to be number one stock in price to earning category among related companies. It is considered to be number one stock in earnings per share category among related companies creating about 0.25 of Earnings Per Share per Price To Earning. The ratio of Price To Earning to Earnings Per Share for Nestle SA is roughly 3.98 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Nestle SA by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Nestle SA's Pink Sheet. 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 Nestle SA's earnings, one of the primary drivers of an investment's value.Nestle Earnings Per Share 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.
Nestle SA |
| = | 25.25 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.
Earnings per Share (EPS) denotes the portion of a company's earnings that is allocated to each share of common stock. To calculate Earnings per Share investors will need to take a company's net income, subtract any dividends for preferred stock, and divide it by the number of average outstanding shares. EPS is usually presented in two different ways: basic and diluted. Fully diluted Earnings per Share takes into account effects of warrants, options, and convertible securities and is generally viewed by analysts as a more accurate measure.
Nestle SA |
| = | 6.35 X |
Earnings per Share is one of the most critical measures of the firm's current share price and is used by investors to determine the overall company profitability, especially when compared to the EPS of similar companies.
Nestle Earnings Per Share Comparison
Nestle SA is currently under evaluation in earnings per share category among related companies.
Nestle SA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Nestle SA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nestle SA will eventually generate negative long term returns. The profitability progress is the general direction of Nestle SA's change in net profit over the period of time. It can combine multiple indicators of Nestle 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 Sa is traded on OTC Exchange in the United States.
Nestle Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Nestle 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 Nestle 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 Nestle SA's important profitability drivers and their relationship over time.
Use Nestle 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 Nestle 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 Nestle SA will appreciate offsetting losses from the drop in the long position's value.Nestle SA Pair Trading
Nestle SA Pair Trading Analysis
The ability to find closely correlated positions to Nestle 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 Nestle 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 Nestle 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 Nestle SA to buy it.
The correlation of Nestle 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 Nestle SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nestle 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 Nestle 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 Nestle SA position
In addition to having Nestle 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 Aggressive Funds Thematic Idea Now
Aggressive Funds
Funds or Etfs that attempt to achieve high capital gains by investing in companies with high growth potential and above average risk. The Aggressive Funds theme has 40 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 Aggressive Funds Theme or any other thematic opportunities.
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Check out Correlation Analysis. Note that the Nestle SA information on this page should be used as a complementary analysis to other Nestle SA's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
Complementary Tools for Nestle Pink Sheet analysis
When running Nestle SA's price analysis, check to measure Nestle 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 Nestle SA is operating at the current time. Most of Nestle SA's value examination focuses on studying past and present price action to predict the probability of Nestle 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 Nestle SA's price. Additionally, you may evaluate how the addition of Nestle SA to your portfolios can decrease your overall portfolio volatility.
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To fully project Nestle SA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Nestle 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 Nestle SA's income statement, its balance sheet, and the statement of cash flows.