Nestle Stock Price Analysis and Quick Research Report. Is Nestle an attractive stock to invest in?

Stock investing requires careful analysis of financial data to determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.

Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements. 

Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse Nestle. 

• PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). Nestle has a PE ratio of 72.755519703624 which is high and comparatively overvalued.

• Return on Assets (ROA): Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Nestle has ROA of 29.0148% which is a good sign for future performance. (Higher values are always desirable.)

• Current ratio: The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. Nestle has a Current ratio of 0.797.

• Return on equity: ROE measures the ability of a firm to generate profits from its shareholders' investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Nestle has a ROE of 88.8839%. (Higher is better)

• Debt to equity ratio: It is a good metric to check out the capital structure along with its performance. Nestle has a Debt to Equity ratio of 0.183 which means that the company has low proportion of debt in its capital.

• Sales growth: Nestle has reported revenue growth of -17.186% which is poor in relation to its growth and performance. 

• Operating Margin: This will tell you about the operational efficiency of the company. The operating margin of Nestle for the current financial year is 23.6186215321985%.

• Dividend Yield: It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for Nestle is Rs 27 and the yield is 1.1093%.

• Earnings Per Share: It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of Nestle is Rs 16.7355. The higher the EPS, the better it is for investors. 

One can find all the Financial Ratios of Nestle in Ticker for free. Also, one can get the intrinsic value of Nestle by using Valuation Calculators, which are available with a Finology ONE subscription. 

Nestle FAQs

Q1. What is Nestle share price today?
Ans: The current share price of Nestle is Rs 1217.6.

Q2. What is the market capitalisation of Nestle?
Ans: Nestle has a market capitalisation of Rs 234791.5516032 Cr., calculated based on its latest share price.

Q3. What are the P/E and P/B ratios of Nestle?
Ans: The PE ratio of Nestle is 72.755519703624 and the P/B ratio of Nestle is 48.1841889693981, showing how the stock is valued against its earnings and book value.

Q4. What is the 52-week high and low of Nestle share?
Ans: The 52-week high share price of Nestle is Rs 1389, and the 52-week low share price of Nestle is Rs 1055.

Q5. Does Nestle pay dividends?
Ans: Currently, Nestle pays dividends. Dividend yield of Nestle is around 1.1093%.

Q6. What are the face value and book value of Nestle shares?
Ans: The face value of Nestle shares is Rs 1, while the book value per share of Nestle is around Rs 25.2697. Face value is the nominal value set by the company, whereas book value reflects its accounting worth.

Q7. What is the debt of Nestle?
Ans: Nestle has a total debt of Rs 753.34 Cr., which affects investor sentiment and financial stability. 

Q8. What are the ROE and ROCE of Nestle?
Ans: The ROE of Nestle is 88.8839% and ROCE of Nestle is 111.2153%. ROE shows how efficiently the company is generating profit from shareholders’ equity, while the ROCE is reflects how efficiently the company uses its capital to generate returns.

Q9. Is Nestle a good buy for the long term?
Ans: The Nestle long-term outlook depends on debt levels, earnings growth, and sector trends. If it sustains profits and manages debt well, it may be considered for long-term investment.

Q10. Is Nestle undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the Nestle appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.

Q11. How to check Nestle’s financials?
Ans: You can review Nestle’s financial statements - including balance sheet, income statement, and quarterly results - on Finology Ticker.