Multiples are indicators that relate one series of variables referring to a single security in order to make it easily and quickly comparable with the respective competitors on the market. These indicators can be a useful tool for investors and a quick and easy way to calculate the intrinsic or fundamental value of a stock. In this article we focus on the multiples of the automotive sector of Piazza Affari, in particular of the Ftse Mib.
The multiples of the automotive giants of the Ftse Mib
The Ftse Mib is the reference index of the Italian stock market and within it also contains stocks active in the automotive sector. Considering only the capitalization of each sector, calculated as the sum of the market caps of the individual securities that are part of it, the primacy goes to the automotive sector, made up of 4 companies with an overall valuation of more than 155.9 billion euros and equal to 21 .7% of the total (data as of April 24, 2024).
The following table shows the best-known multiples:
price/book value (P/BV) earnings per share (EPS) price/earnings per share (P/E) enterprise value/sales (EV /SALES) enterprise value/gross operating margin (enterprise value/earnings before Interest taxes depreciation and amortisation, EV/EBITDA) enterprise value/earnings before Interest and taxes, EV/EBIT
Title
Last price (€)
Market Cap (€ mld)
P/BV
EPS
P/E
EV/SALES
EV/EBITDA
EV/EBIT
Stellantis
23,43
73,9
0,87
6,42
3,75
0,27
1,68
2,25
Ferrari
392,2
71,7
24,85
6,9
57,11
12,24
32,05
45,18
Iveco
11,96
3,2
1,35
1,23
14,94
0,06
0,73
1,26
Pirelli & C.
5,92
5,9
1,08
0,6
12,35
1,32
6,27
10,83
Source Bloomberg, elaborated by the FinanzaOnline Research Office; data updated as of 04/24/2024
Please remember that each individual company has its own peculiarities and, therefore, the selection activity cannot ignore the in-depth analysis of each individual investment theme.
The multiples linked to the price
As we have said, market multiples are used in comparative analysis with the aim of comparing the positioning of a company compared to its competitors. For simplicity we will distinguish them into multiples relative to the stock market price and multiples relative to the value of the company. The former are relationships between the market prices (quotations) of an equity instrument and a given balance sheet quantity. The most commonly used financial statement figures are profits and book value of equity. Price multiples are the most used by investors and allow you to quickly understand how the market views the company and what value it attributes to it at a given moment.
Il P/BV (price to book value) represents the ratio between the market value of a company’s equity and its book value. This multiple depends on the profitability of equity, expressed as ROE (Return on Equity). A high ROE usually corresponds to a high P/BV, and vice versa. P/BV is especially useful for comparing similar companies within the same industry that follow the same accounting principles. It is important to note that this multiple cannot be used to compare companies in different industries or with different accounting standards.
L‘EPS (earnings per share) represents a company’s net income divided by the total number of shares outstanding in a given year.
Il P/E (price to earnings) iIndicates how many times the share price reflects expected earnings. A higher P/E generally corresponds to higher expected earnings growth (EPS), while a lower P/E may indicate more modest expected growth or greater uncertainties about the predictability of future earnings. A low growth rate coupled with high P/Es should warn investors, while significant growth with low P/Es could attract traders.
The multiples linked to the value of the company
Unlike the previous ones, i multiples linked to the value of the company represent a valuation method of a listed company which corresponds to the stock market capitalization plus net financial debt.
L’Enterprise Value (EV) it is calculated with the following formula: market capitalization + net debt or – net liquidity. EV is a good indicator in the case of acquisitions, as it takes into account the debt that the buyer will have to take on. A company with a low EV can be seen as a good candidate for an acquisition.
L’EV/SALES (enterprise value/sales) it is a market multiple given by the ratio between the value of a company and its turnover (generated in the year). If the resulting ratio is high, it means that the company has a relatively high valuation relative to sales, while a low ratio indicates that the company is valued relatively low relative to revenue. This market multiple is typically used in combination with other multiples or when a company has not generated profits.
L’EV/EBITDA (enterprise value/earnings before Interest taxes depreciation and amortisation) it is a market multiple given by the ratio between the value of a company and the gross operating margin. It represents the price that should be paid in the case of acquisition of the company without debt.
L’EV/EBIT (enterprise value/earnings before Interest and taxes) it is a market multiple given by the ratio between the value of a company and the net operating margin. Compared to the previous one, this multiple subtracts all depreciation and provisions, offering a better estimate of free cash flows compared to Ebitda.
The lower the EV/EBITDA or EV/EBIT ratio, the better the company is undervalued by the marketcompared of course to comparable companies.
Finally, it should be noted that financial analysts also use multiples to calculate the so-called “target price” of a specific stock. In fact, among the best-known company valuation methods we find the comparison of multiples (P/E, EV/EBITDA or others, with a sample of comparable companies). For financial stocks, analysts usually compare ROE, cost of capital and P/BV (price to book value).
Related
Ftse Mib, the market multiples of automotive stocks (26/04/24)
ABB took part in the first banking mission to the USA
– 2024-04-27 01:29:42
Under the leadership of the Chairman of the Central Bank of Azerbaijan, Taleh Kazimov, and with the organization of the Association of Banks of Azerbaijan, together with the US-Azerbaijan Chamber of Commerce, the first banking mission to the United States is being completed.
The mission also includes the Chairman of the Board of ABB Bank, Abbas Ibragimov.
During the trip, meetings were held at the US State Department, the International Finance Corporation, as well as other relevant US government organizations and financial institutions. Current global trends in the banking sector and modern challenges and opportunities for cooperation in the fields of green energy, agriculture and aviation, including joint financing of existing opportunities and large projects, were discussed. Discussions were also held on issues of interaction, risk management, compliance with regulatory requirements, the use of artificial intelligence in banking operations and other relevant topics. Opportunities for expanding cooperation between US financial institutions and Azerbaijani banks were assessed, including with a leading bank in the sector such as ABB.
Chairman of the Board of ABB Abbas Ibragimov took an active part in the mission, making presentations on current topics at meetings held at Exim Bank and the International Trade Administration of the US Department of Commerce. In addition, mission participants learned about the latest advances in technology by visiting the Honeywell Technology and Experience Center.
Information about modern, useful, universal products and services of ABB Bank can be obtained at the Bank’s branches and offices, on the official website by calling the Information Center at short number 937, as well as on the Bank’s official Facebook page.
ABB took part in the first banking mission to the USA – 2024-04-27 01:29:42
Previewing Nantes Hermine Basket’s Final Home Game: Family Game
What should we expect from this final act at home? To this question, there are only players Laurent PLUVY an answer will be given this Friday night, in a Trocardière who should refuel again, for ” Family Game “. The words and comments marked by the bitterness of the Nantes technician after the defeat against Antibes, spoke volumes about the state of mind of the group: “Thehis consistency declined during the season. All the friendly image they didn’t have anymore… They spoil the adventure a bit! » Is an answer within the reach of a team that has been able to develop attractive and coherent basketball at this level of competition in the early part of the season?
The opponent of the 32.th During the day:
Ranked 13th just behind Nantes (12V/19D), there is no doubt that the Valencian suburbs hoped for much better from this 203/2024 season. A big step taken to hold just last weekend at home against Evreux (87/72) and the whole club is breathing a little easier… Changes from the “first leg” game when the logo went away Rémy VALIN, to be removed from the group at the beginning of April, for « a decision that has shock value » local leaders said. After the very short interval of the assistant Jules Bosse, the club’s management has hiredAli BOUZIANE (former Angers from 2022) to finish the season. Also instead of the playmaker Chris Lykes by the end of February Courtney FORSTON (USA, Post 1, 35 years old, 180 cm). Globe-Trotter of the orange ball with a solid CV, and coming from Poland D1 and then Finland D1 last season. Independent medicineFAIRELL AGE, it is It was EDOSOMWAN (NIG/USA, Post 5, 206 Cm, 30 years old) who joined the group at the start of January 2024. Two consecutive wins against relegation-threatened teams have been recorded sinceAli BOUZIANE.
Some statistics on Denain Voltaire:
Rating of the last five seasons of Voltaire: 2022/23 14th2021/22 10th2020/21 5th2019/20 7 days2018/19 15th. From the beginning of March the balance sheet (3V/7D). Denain gives the 17th attack with an average of 76 Pts registeredand the 7th Defense Attached by Fos-sur-Mer by 80.1 Pts accumulated on average. After 31 days, the balance is gone (5V/10D), with success in Antibes, Aix-Maurienne, Grain-Souffel, Rutherford etc FOS by sea. During these victories it is the average points scored 88.2 Ptspour 82.44 collected. With a 4th rank in rebounds (37.8 avg. including 11.9 Off / 25.9 Def), Denain are a strong team on the inside which could once again cause problems for Nantes in the inside section.
Statistics of the “first leg” match: 12/19/23
Influence of Denain Voltaire 87/84 AP (Q1 17/23 – Q2 19/19 – Q3 20/13 – Q4 22/23 – PRL 9/6)
DENAIN: 20/38 at 2 Pts at 52.6%, 11/26 at 3 Pts at 42.3%, 14/20 at Throwing at 70%, 33 Rebounds (10 Off, 23 Def), 23 Passes, 9 Interceptions, 17 Lost Balls, 18 Fouls Caused, 105 Comps. AUGUSTIN-FAIRELL 18 pieces, PAYEN-BOUCARD 5 pieces, GILLET 8 pieces, LYKS 20 pieces, PHILIP 4 pieces, DIFFUSION 13 pieces, TCHICAMBOUD 9 pieces, MARSILLON-NOLEO 6 pieces, MIAMI 4 Pieces.
NANTES : 21/39 at 2 Pts at 53.9%, 8/22 at 3 Pts at 36.4%, 18/24 at Throwing at 75%, 35 Rebounds (10 Off, 25 Def), 12 Passes, 7 Interceptions, 19 Lost Balls, 24 Fouls Caused, 87 Overall Rating. THOMAS 23 pieces, BOBBA 7 pieces, me 10 pieces, FAST 19 pieces, RULES 10 pieces, FOUNDATION 10 pieces, DINAL 1 Pt, GAUTHIER 4 Pieces.
Individuals to control :
Watch out for the rookie at the start of the year ZENA EDOSOMWAN ! In 17 games played he perfectly lives up to the trust placed in him as a medical freelancer (9.8 Pts, 60% at 2 Pts, 7.2 Rebs (2.8 Off / 4.4 Def), 2.5 Induced Faults and 13.7 Evaluation). Just signed 20 Pts, 81.8% at 2 Pts at 9/11, 2/2 on Throwing, 6 Rebounds, 2 Interceptions, 2 Caused Fouls and 25 Individual Evaluation during the victory against Evreux.
On Post 1, Courtney FORSTON with 10 participation also very quickly found his marks… (12 Pts, 38.6% at 2 Pts, 75.4% on Throws, 4.4 rebounds, 8.2 passes, 1.1 interceptions, 6.2 fumbles caused and 14.2 individual evaluations for 31.2 minutes). Reference game against Aix-Maurienne with 23 Pts, 55.6% at 3 Pts at 5/9, 9 rebounds, 15 passes, 6 fouls caused and 33 individual evaluations for 41 minutes.
LIEN PHILIP on Position 4, confirming all his victories for his fifth season in Pro B (31 games played, 29 times in the starting five, 11.4 Pts, 50.3% at 2 Pts, 40.2% at 3 Pts, 77.9% Shooting, 5.8 Rebounds, 1.1 Passes, 1.9 Fouls Caused, 11.7 Rating for 24.8 Minutes. His favorite match was also against him Aix-Maurienne (32 Pts, 75% at 2 Pts at 6/8, 83.3% at 3 Pts at 5/6, 71.4% at Throwing at 5/7, 6 Rebounds, 3 Passes, 4 Interceptions, 6 Caused Fouls and 39 Individual Ratings !
On Post 5, Essome MIYEM (22 years old) continues his development in advance of the Elite he would visit with Strasbourg in 2020/21. There are physical and technical features (54.5% at 2 Pts, 3.2 Rebounds, 1.4 Induced Fouls, 6.8 Rating.
His 37 years Benoit GILLET (reigning champion) he is in his 18th season in the LNB. Passed through Pro A to Reims and Clermont (2003/08), he had good days Lille, Denain and St-Quentin in Pro B. His natural long-range skill is always a threat behind the arc, and he’s still able to make the difference in breaking situations. A manager with a lot of experience. On the way out he had signed it 8 points, 7 passes, 3 interceptions and 12 evaluations.
“Young people who don’t want it”…
A former resident of the Cholet Training Center, Kevin MARSILLON-NOLEO(Position 4/3, 21 years old, 202 cm) continues to develop her strong potential for the higher level. A big defender, athletic and confident in his efforts (7.3 Pts, 55.4% at 2 Pts, 73.3% Shooting, 5.8 Rebounds, 1.7 Fouls Caused, 10.9 Rating.) In 28 games he was between 10 and 21 Rating fifteen times, with a reference game against Vichy Yes 21 Pts, 71.4% at 2 Pts at 5/7, 88.9% at Throwing at 8/9, 9 Rebounds, 2 Blocks, 2 Interceptions, 5 Caused Fouls and 28 Individual Ratings for 33 Minutes.
Retired player Hope in Boulazac etc Orleans, Naphtali DIFUIDI (Post 3/2, 22 years, 193 Cm) one by one climbing the ladder that could lead to a great career. He knows the areas of work that should be implemented to continue his development, but his influence is already valuable in Voltaire’s “roster” (12.6 Pts, 54.6% at 2 pts, 28.7% at 3 Pts , 72.6% at Lancers, 3.7 Rebounds, 1.7 Passes, 1.2 Interceptions, 2.7 Caused Fouls.
One last home meeting to honor the Pluvy players. Harvey GAUTHIER promoted to captain against the “SHARKS”, set an example by being at the beginning of a revolution in the last minutes. Tonight all the players must be united throughout the entire match to avoid another bitter disappointment in front of more than 3,700 people. the ” Family Game » the last chance to thank the supporters for being present during the season… So, ladies and gentlemen, be proud of your colors by bringing the all the best to you!
They are counting on you!
Go to Nantes Hermine Basket!
Car
Other meetings on the 32th During the day:
26/04/2024:
Boulazac (3rd) VS St-Chamond (9th)
Vichy (2nd) VS Poitiers (7th)
28/02/2024:
Fos-sur-Mer (18th) VS La Rochelle (1st)
Lille (11th) VS Aix-Maurienne (15th)
Gries-Souffel (10th) VS Pau-Lacq-Orthez (8th)
Antibes (12th) VS Rouen (4th)
Evreux (17th) VS Orléans (5th)
Châlons-Reims (6th) VS Angers (16th)
Late Games:
On April 30 the meeting will be held Boulazac against Vichy for the 24th day.
2024-04-26 20:30:30
#Denain #Voltaire #nice #curtain #drop #Basket #Nantes #Hermine
Previewing Nantes Hermine Basket’s Final Home Game: Family Game