Western Union Co Stock Market Value
| WU Stock | USD 11.06 0.20 1.84% |
| Symbol | Western |
Western Union Price To Book Ratio
Is Transaction & Payment Processing 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 Western Union. If investors know Western 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 Western Union 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 0.706 | Dividend Share 0.94 | Earnings Share 1.96 | Revenue Per Share 12.174 | Quarterly Revenue Growth (0.06) |
The market value of Western Union is measured differently than its book value, which is the value of Western that is recorded on the company's balance sheet. Investors also form their own opinion of Western Union's value that differs from its market value or its book value, called intrinsic value, which is Western Union'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 Western Union's market value can be influenced by many factors that don't directly affect Western Union'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 Western Union's value and its price as these two are different measures arrived at by different means. Investors typically determine if Western Union is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Western Union'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.
Western Union 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Western Union's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Western Union.
| 11/30/2023 |
| 11/24/2024 |
If you would invest 0.00 in Western Union on November 30, 2023 and sell it all today you would earn a total of 0.00 from holding Western Union Co or generate 0.0% return on investment in Western Union over 360 days. Western Union is related to or competes with American Express, Morningstar Unconstrained, Sitka Gold, MSCI ACWI, Bim Birlesik, SEI Investments, and Morningstar Total. The Western Union Company provides money movement and payment services worldwide More
Western Union Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Western Union's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Western Union Co upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.15) | |||
| Maximum Drawdown | 5.82 | |||
| Value At Risk | (2.02) | |||
| Potential Upside | 1.84 |
Western Union Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Western Union's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Western Union's standard deviation. In reality, there are many statistical measures that can use Western Union historical prices to predict the future Western Union's volatility.| Risk Adjusted Performance | (0.02) | |||
| Jensen Alpha | (0.09) | |||
| Total Risk Alpha | (0.25) | |||
| Treynor Ratio | (0.21) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Western Union's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Western Union Backtested Returns
Western Union shows Sharpe Ratio of -0.0671, which attests that the company had a -0.0671% return per unit of risk over the last 3 months. Western Union exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out Western Union's Market Risk Adjusted Performance of (0.20), standard deviation of 1.21, and Mean Deviation of 0.9022 to validate the risk estimate we provide. The firm maintains a market beta of 0.27, which attests to not very significant fluctuations relative to the market. As returns on the market increase, Western Union's returns are expected to increase less than the market. However, during the bear market, the loss of holding Western Union is expected to be smaller as well. At this point, Western Union has a negative expected return of -0.0807%. Please make sure to check out Western Union's rate of daily change, and the relationship between the kurtosis and market facilitation index , to decide if Western Union performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.42 |
Modest reverse predictability
Western Union Co has modest reverse predictability. Overlapping area represents the amount of predictability between Western Union time series from 30th of November 2023 to 28th of May 2024 and 28th of May 2024 to 24th of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Western Union price movement. The serial correlation of -0.42 indicates that just about 42.0% of current Western Union price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.42 | |
| Spearman Rank Test | -0.53 | |
| Residual Average | 0.0 | |
| Price Variance | 0.26 |
Western Union lagged returns against current returns
Autocorrelation, which is Western Union stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Western Union's stock expected returns. We can calculate the autocorrelation of Western Union returns to help us make a trade decision. For example, suppose you find that Western Union has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Western Union regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Western Union stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Western Union stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Western Union stock over time.
Current vs Lagged Prices |
| Timeline |
Western Union Lagged Returns
When evaluating Western Union's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Western Union stock have on its future price. Western Union autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Western Union autocorrelation shows the relationship between Western Union stock current value and its past values and can show if there is a momentum factor associated with investing in Western Union Co.
Regressed Prices |
| Timeline |
Thematic Opportunities
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Additional Tools for Western Stock Analysis
When running Western Union's price analysis, check to measure Western Union's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Western Union is operating at the current time. Most of Western Union's value examination focuses on studying past and present price action to predict the probability of Western Union's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Western Union's price. Additionally, you may evaluate how the addition of Western Union to your portfolios can decrease your overall portfolio volatility.