Liberty Global Price To Earning vs. Return On Asset

LBTYA Stock  USD 18.68  0.01  0.05%   
Taking into consideration Liberty Global's profitability measurements, Liberty Global PLC may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in August. Profitability indicators assess Liberty Global's ability to earn profits and add value for shareholders. At present, Liberty Global's Days Sales Outstanding is projected to drop slightly based on the last few years of reporting. The current year's Operating Cash Flow Sales Ratio is expected to grow to 0.50, whereas Price To Sales Ratio is forecasted to decline to 0.96. At present, Liberty Global's Accumulated Other Comprehensive Income is projected to decrease significantly based on the last few years of reporting. The current year's Income Tax Expense is expected to grow to about 246.7 M, whereas Operating Income is projected to grow to (232.3 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.490.6817
Way Down
Pretty Stable
For Liberty Global profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Liberty Global to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Liberty Global PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Liberty Global's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Liberty Global PLC over time as well as its relative position and ranking within its peers.
  

Liberty Global's Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
Is Diversified Telecommunication Services space 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 Liberty Global. If investors know Liberty 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 Liberty Global 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
(0.68)
Earnings Share
(6.61)
Revenue Per Share
18.617
Quarterly Revenue Growth
0.041
Return On Assets
(0)
The market value of Liberty Global PLC is measured differently than its book value, which is the value of Liberty that is recorded on the company's balance sheet. Investors also form their own opinion of Liberty Global's value that differs from its market value or its book value, called intrinsic value, which is Liberty Global'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 Liberty Global's market value can be influenced by many factors that don't directly affect Liberty Global'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 Liberty Global's value and its price as these two are different measures arrived at by different means. Investors typically determine if Liberty Global is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Liberty Global'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.

Liberty Global PLC Return On Asset vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Liberty Global's current stock value. Our valuation model uses many indicators to compare Liberty Global value to that of its competitors to determine the firm's financial worth.
Liberty Global PLC is rated below average in price to earning category among its peers. It is rated below average in return on asset category among its peers . The current year's Return On Assets is expected to grow to -0.09. 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 Liberty Global's earnings, one of the primary drivers of an investment's value.

Liberty Global's Earnings Breakdown by Geography

Liberty Return On Asset 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.

Liberty Global

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
1.74 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.
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.

Liberty Global

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.0023
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.

Liberty Return On Asset Comparison

Liberty Global is currently under evaluation in return on asset category among its peers.

Liberty Global Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Liberty Global, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Liberty Global will eventually generate negative long term returns. The profitability progress is the general direction of Liberty Global's change in net profit over the period of time. It can combine multiple indicators of Liberty Global, 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income2.2 B2.3 B
Operating Income-244.5 M-232.3 M
Net Loss-3.9 B-3.7 B
Income Tax Expense149.6 M246.7 M
Income Before Tax-3.7 B-3.5 B
Total Other Income Expense Net-2.9 B-2.7 B
Net Loss-5.1 B-4.8 B
Non Operating Income Net Other2.1 B1.3 B
Net Income Applicable To Common Shares1.7 B2.4 B
Interest Income175.6 M166.8 M
Net Interest Income-652.9 M-685.5 M
Change To Netincome-731.2 M-694.6 M
Net Loss(9.52)(9.04)
Income Quality(0.56)(0.59)
Net Income Per E B T 1.09  1.14 

Liberty Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Liberty Global. 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 Liberty Global 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 Liberty Global's important profitability drivers and their relationship over time.

Use Liberty Global 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 Liberty Global 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 Liberty Global will appreciate offsetting losses from the drop in the long position's value.

Liberty Global Pair Trading

Liberty Global PLC Pair Trading Analysis

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

In addition to having Liberty Global 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.

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Video Games
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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 Video Games Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Liberty Stock

When determining whether Liberty Global PLC is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Liberty Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Liberty Global Plc Stock. Highlighted below are key reports to facilitate an investment decision about Liberty Global Plc Stock:
Check out Correlation Analysis.
You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
To fully project Liberty Global's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Liberty Global PLC 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 Liberty Global's income statement, its balance sheet, and the statement of cash flows.
Potential Liberty Global investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Liberty Global investors may work on each financial statement separately, they are all related. The changes in Liberty Global's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Liberty Global'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.