Galapagos Beta vs. Price to Book

GLPG Stock  USD 32.95  0.24  0.73%   
Based on Galapagos' profitability indicators, Galapagos' profitability may be sliding down. It has an above-average odds of reporting lower numbers next quarter. Profitability indicators assess Galapagos' ability to earn profits and add value for shareholders. The current Price To Sales Ratio is estimated to decrease to 8.65. The current Price Sales Ratio is estimated to decrease to 8.65. At this time, Galapagos' Net Income is most likely to increase significantly in the upcoming years. The Galapagos' current Income Tax Expense is estimated to increase to about 10.1 M, while Operating Income is forecasted to increase to (128.8 M).
For Galapagos profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Galapagos to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Galapagos NV ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Galapagos's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Galapagos NV ADR over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Is Galapagos' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Galapagos. If investors know Galapagos will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Galapagos listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.19
Earnings Share
(2.54)
Revenue Per Share
0.1818
Quarterly Revenue Growth
(0.12)
Return On Assets
(0.01)
The market value of Galapagos NV ADR is measured differently than its book value, which is the value of Galapagos that is recorded on the company's balance sheet. Investors also form their own opinion of Galapagos' value that differs from its market value or its book value, called intrinsic value, which is Galapagos' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Galapagos' market value can be influenced by many factors that don't directly affect Galapagos' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Galapagos' value and its price as these two are different measures arrived at by different means. Investors typically determine if Galapagos is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Galapagos' 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.

Galapagos NV ADR Price to Book vs. Beta Fundamental Analysis

Galapagos Price to Book vs. Beta

Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.

Galapagos

Beta

 = 

Covariance

Variance

 = 
0.027
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.

Galapagos

 = 
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Use Galapagos 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 Galapagos 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 Galapagos will appreciate offsetting losses from the drop in the long position's value.

Galapagos Pair Trading

Galapagos NV ADR Pair Trading Analysis

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

In addition to having Galapagos 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 Preferred Stock ETFs Thematic Idea Now

Preferred Stock ETFs
Preferred Stock ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Preferred Stock ETFs theme has 15 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 Preferred Stock ETFs Theme or any other thematic opportunities.
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When determining whether Galapagos NV ADR is a strong investment it is important to analyze Galapagos' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Galapagos' future performance. For an informed investment choice regarding Galapagos Stock, refer to the following important reports:

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When running Galapagos' price analysis, check to measure Galapagos' 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 Galapagos is operating at the current time. Most of Galapagos' value examination focuses on studying past and present price action to predict the probability of Galapagos' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Galapagos' price. Additionally, you may evaluate how the addition of Galapagos to your portfolios can decrease your overall portfolio volatility.
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To fully project Galapagos' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Galapagos NV ADR 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 Galapagos' income statement, its balance sheet, and the statement of cash flows.
Potential Galapagos investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Galapagos investors may work on each financial statement separately, they are all related. The changes in Galapagos's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Galapagos'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.