Estee Lauder Price to Earning vs. Return On Asset
| EL Stock | USD 147.36 1.62 1.09% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.85 | 0.82 |
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| Net Profit Margin | 0.061 | 0.0569 |
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| Operating Profit Margin | 0.096 | 0.0854 |
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| Pretax Profit Margin | 0.088 | 0.079 |
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| Return On Assets | 0.0367 | 0.0387 |
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| Return On Equity | 0.21 | 0.16 |
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For Estee Lauder profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Estee Lauder to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Estee Lauder Companies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Estee Lauder's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Estee Lauder Companies over time as well as its relative position and ranking within its peers.
Estee |
Is Estee Lauder's 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 Estee Lauder. If investors know Estee 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 Estee Lauder 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 (0.20) | Dividend Share 2.64 | Earnings Share 1.3 | Revenue Per Share 42.303 | Quarterly Revenue Growth (0.07) |
The market value of Estee Lauder Companies is measured differently than its book value, which is the value of Estee that is recorded on the company's balance sheet. Investors also form their own opinion of Estee Lauder's value that differs from its market value or its book value, called intrinsic value, which is Estee Lauder's 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 Estee Lauder's market value can be influenced by many factors that don't directly affect Estee Lauder's 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 Estee Lauder's value and its price as these two are different measures arrived at by different means. Investors typically determine if Estee Lauder is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Estee Lauder'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.
Estee Lauder Companies Return On Asset vs. Price to Earning Fundamental Analysis
Estee Return On Asset vs. Price to Earning
Estee Lauder | = | null |
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Estee Lauder |
| = | 0.0291 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Estee Return On Asset Comparison
Estee Lauder is currently under evaluation in return on asset category among related companies.
Use Estee Lauder 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 Estee Lauder 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 Estee Lauder will appreciate offsetting losses from the drop in the long position's value.Estee Lauder Pair Trading
Estee Lauder Companies Pair Trading Analysis
The ability to find closely correlated positions to Estee Lauder could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Estee Lauder 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 Estee Lauder - 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 Estee Lauder Companies to buy it.
The correlation of Estee Lauder 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 Estee Lauder moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Estee Lauder Companies 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 Estee Lauder 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 Estee Lauder position
In addition to having Estee Lauder 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?
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Companies that are related to providing gambling services across multiple geographical areas by investing, exploring, or producing software, hardware, and related infrastructure for running gambling operations or trading speculative assets. The Gambling theme has 38 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 Gambling Theme or any other thematic opportunities.
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Check out Investing Opportunities. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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When running Estee Lauder's price analysis, check to measure Estee Lauder'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 Estee Lauder is operating at the current time. Most of Estee Lauder's value examination focuses on studying past and present price action to predict the probability of Estee Lauder's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Estee Lauder's price. Additionally, you may evaluate how the addition of Estee Lauder to your portfolios can decrease your overall portfolio volatility.
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To fully project Estee Lauder's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Estee Lauder Companies 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 Estee Lauder's income statement, its balance sheet, and the statement of cash flows.