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United Technologies Price to Sales vs. Beta

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UTX -- USA Stock  

Fiscal Quarter End: March 31, 2020  

The Drivers Module shows relationships between United Technologies's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of United Technologies Corporation over time as well as its relative position and ranking within its peers. Also please take a look at World Market Map

United Technologies Beta vs. Price to Sales Fundamental Analysis

United Price Drivers Relationships

United Technologies Corporation is rated fifth in price to sales category among related companies. It is rated fifth in beta category among related companies totaling about  0.71  of Beta per Price to Sales. The ratio of Price to Sales to Beta for United Technologies Corporation is roughly  1.41 
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
United Technologies 
P/S 
 = 
MV Per Share 
Revenue Per Share 
=
1.75 
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
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 will be 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.
United Technologies 
Beta 
 = 
Covariance 
Variance 
=
1.24
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.

United Beta Comparison

  Beta 
    
  United Technologies Comparables 
United Technologies is rated fourth in beta category among related companies.

Beta Analysis

As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, United Technologies will likely underperform.

United Fundamental Comparison