Sohu Inc Price to Book vs. Cash Flow from Operations

SOHU
 Stock
  

USD 17.14  0.36  2.06%   

For Sohu Inc profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sohu Inc to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sohu Inc ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sohu Inc's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sohu Inc ADR over time as well as its relative position and ranking within its peers. Additionally, take a look at World Market Map.
  
Is Sohu Inc'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 Sohu Inc. If investors know Sohu Inc 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 Sohu Inc listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Sohu Inc ADR is measured differently than its book value, which is the value of Sohu Inc that is recorded on the company's balance sheet. Investors also form their own opinion of Sohu Inc's value that differs from its market value or its book value, called intrinsic value, which is Sohu Inc'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 Sohu Inc's market value can be influenced by many factors that don't directly affect Sohu Inc'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 Sohu Inc's value and its price as these two are different measures arrived at by different means. Investors typically determine Sohu Inc value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sohu Inc'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.

Sohu Inc ADR Cash Flow from Operations vs. Price to Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Sohu Inc's current stock value. Our valuation model uses many indicators to compare Sohu Inc value to that of its competitors to determine the firm's financial worth.
Sohu Inc ADR is currently regarded as top stock in price to book category among related companies. It is currently regarded as top stock in cash flow from operations category among related companies . . Comparative valuation analysis is a catch-all model that can be used if you cannot value Sohu Inc by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Sohu Inc's Stock . 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 Sohu Inc's earnings, one of the primary drivers of an investment's value.

Sohu Inc Cash Flow from Operations vs. Price to Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Sohu Inc 
P/B 
 = 
MV Per Share 
BV Per Share 
1.94 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes, and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investors or analysts to check on the quality of a company's earnings.
Sohu Inc 
Operating Cash Flow 
 = 
EBITDA 
-  
Taxes 
(62.28 M)
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about the company having enough liquid resources to meet current and long term debt obligations.

Sohu Inc Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Sohu Inc, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Sohu Inc will eventually generate negative long term returns. The profitability progress is the general direction of Sohu Inc's change in net profit over the period of time. It can combine multiple indicators of Sohu Inc, 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.
Sohu.com Limited provides online media, video, and game products and services on PCs and mobile devices in China. Sohu.com Limited was incorporated in 1996 and is headquartered in Beijing, China. Sohu Inc operates under Electronic Gaming Multimedia classification in the United States and is traded on NASDAQ Exchange. It employs 4900 people.

Sohu Inc Profitability Driver Comparison

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

Use Sohu Inc 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 Sohu Inc 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 Sohu Inc will appreciate offsetting losses from the drop in the long position's value.

Sohu Inc Pair Trading

Sohu Inc ADR Pair Trading Analysis

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

In addition to having Sohu Inc 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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Real Estate Theme
Publicly traded companies that are involved in real estate development, property maintenance and management of real estate investment trusts (REIT) funds. The Real Estate theme has 40 constituents at this time.
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Additionally, take a look at World Market Map. Note that the Sohu Inc ADR information on this page should be used as a complementary analysis to other Sohu Inc'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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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To fully project Sohu Inc's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Sohu Inc 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 Sohu Inc's income statement, its balance sheet, and the statement of cash flows.
Potential Sohu Inc investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Sohu Inc investors may work on each financial statement separately, they are all related. The changes in Sohu Inc's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Sohu Inc'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.