10 vital ratios of EuroStoxx 50 companies (table) - DAVID RAUDALES DRUK
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10 vital ratios of EuroStoxx 50 companies (table)

ratios-IBEX-Eurostoxx.jpg

 Bankinter's analysis department offers its traditional weekly table in which it shows updated values ​​and ratios of the main European companies. By analysing some of them, such as the PER, it is possible to find out the most expensive and cheapest stocks currently on the Eurozone stock market .

You can download the ratios by clicking on the photo above or from this link:  Updated ratios of the Ibex and the Eurostoxx.

Ratios of EuroStoxx 50 companies

EuroStoxx profitability  

  • The  first block  shows the  profitability  of companies over the last year.
  • Next to this data is the  market capitalization  or the total value of the company  according to its stock  market listing .

PER EuroStoxx companies  

  • In the  second block  of columns we find the  PER  (Price earnings ratio). The  PER is the number of times that a company's market capitalization is included in its expected profit . So, for example, if a company is worth 500 million and is expected to earn 50 million annually, its PER will be the result of dividing the first value by the second, that is, 10. Companies with a lower PER are said to be cheap and those with a higher PER are said to be expensive. 

EuroStoxx  net profit 

  • Attributable net profit : shows  a company's estimated profit for the current financial year. 

EuroStoxx companies profitability   

  • Dividend yield and next dividend : This block shows the  estimated dividend yield for 2020-2021 based on the dividends expected  to be paid in the year as well as the date of the next expected dividend. 
  • ROE  (Return on Equity): measures  financial profitability and relates the economic benefit obtained with the resources . It is a measure of how a company invests funds to generate income and is usually expressed as a percentage that measures net profit divided by equity . In a simple example, if we invest 1 million euros in a business and it returns 100,000 euros in profit, the ROE would be 10%.

Other  EuroStoxx  50 ratios

  • D/FFPP  ( Debt /equity): measures the level of debt that a company has in relation to its equity.  The lower the debt, the better , as it indicates that the company has little debt. 
  • P  /B/V  (Price/ Book Value ):  If this value is 1, it means that the capitalization matches its accounting valuation . According to this, a company with a P/B ratio of less than 1 indicates a theoretical undervaluation, since its price would be below its accounting value. On the other hand, ratios higher than 1 indicate an overvaluation. In short,  the lower this ratio is, the cheaper a company is according to this criterion . It must be taken into account that the accounting values ​​of a company depend on variable accounting criteria and asset valuation , which have very little to do with the profitability of the company.

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