Builders FirstSource EBITDA vs. Market Capitalization
| BLDR Stock | USD 186.47 1.72 0.93% |
EBITDA | First Reported 2010-12-31 | Previous Quarter 2.7 B | Current Value 2.9 B | Quarterly Volatility 1.4 B |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.2 | 0.3517 |
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For Builders FirstSource profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Builders FirstSource to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Builders FirstSource utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Builders FirstSource's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Builders FirstSource over time as well as its relative position and ranking within its peers.
Builders |
Builders FirstSource's Revenue Breakdown by Earning Segment
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Is Building Products 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 Builders FirstSource. If investors know Builders 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 Builders FirstSource 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 (0.32) | Earnings Share 10.24 | Revenue Per Share 139.453 | Quarterly Revenue Growth (0.07) | Return On Assets 0.103 |
The market value of Builders FirstSource is measured differently than its book value, which is the value of Builders that is recorded on the company's balance sheet. Investors also form their own opinion of Builders FirstSource's value that differs from its market value or its book value, called intrinsic value, which is Builders FirstSource'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 Builders FirstSource's market value can be influenced by many factors that don't directly affect Builders FirstSource'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 Builders FirstSource's value and its price as these two are different measures arrived at by different means. Investors typically determine if Builders FirstSource is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Builders FirstSource'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.
Builders FirstSource Market Capitalization vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Builders FirstSource's current stock value. Our valuation model uses many indicators to compare Builders FirstSource value to that of its competitors to determine the firm's financial worth. Builders FirstSource is rated third in ebitda category among its peers. It is rated fifth in market capitalization category among its peers creating about 7.78 of Market Capitalization per EBITDA. At this time, Builders FirstSource's EBITDA is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Builders FirstSource by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Builders Market Capitalization vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Builders FirstSource |
| = | 2.73 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.
Builders FirstSource |
| = | 21.26 B |
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.
Builders Market Capitalization vs Competition
Builders FirstSource is rated fifth in market capitalization category among its peers. Market capitalization of Industrials industry is currently estimated at about 304.18 Billion. Builders FirstSource holds roughly 21.26 Billion in market capitalization claiming about 7% of equities under Industrials industry.
Builders FirstSource Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Builders FirstSource, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Builders FirstSource will eventually generate negative long term returns. The profitability progress is the general direction of Builders FirstSource's change in net profit over the period of time. It can combine multiple indicators of Builders FirstSource, 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.
| Last Reported | Projected for Next Year | ||
| Operating Income | 2.2 B | 2.3 B | |
| Income Before Tax | 2 B | 2.1 B | |
| Total Other Income Expense Net | -192.1 M | -182.5 M | |
| Net Income | 1.5 B | 1.6 B | |
| Income Tax Expense | 443.6 M | 465.8 M | |
| Net Income Applicable To Common Shares | 3.2 B | 3.3 B | |
| Net Income From Continuing Ops | 1.6 B | 1.7 B | |
| Interest Income | 98.6 M | 117.6 M | |
| Net Interest Income | -187.6 M | -196.9 M | |
| Change To Netincome | 3.7 M | 3.5 M | |
| Net Income Per Share | 12.06 | 12.66 | |
| Income Quality | 1.50 | 1.57 | |
| Net Income Per E B T | 0.78 | 0.78 |
Builders Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Builders FirstSource. 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 Builders FirstSource 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 Builders FirstSource's important profitability drivers and their relationship over time.
Use Builders FirstSource 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 Builders FirstSource 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 Builders FirstSource will appreciate offsetting losses from the drop in the long position's value.Builders FirstSource Pair Trading
Builders FirstSource Pair Trading Analysis
The ability to find closely correlated positions to Builders FirstSource could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Builders FirstSource 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 Builders FirstSource - 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 Builders FirstSource to buy it.
The correlation of Builders FirstSource is a statistical measure of how it moves in relation to other instruments. 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 Builders FirstSource moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Builders FirstSource 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 Builders FirstSource 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.Use Investing Themes to Complement your Builders FirstSource position
In addition to having Builders FirstSource 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.Did You Try This Idea?
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Additional Tools for Builders Stock Analysis
When running Builders FirstSource's price analysis, check to measure Builders FirstSource'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 Builders FirstSource is operating at the current time. Most of Builders FirstSource's value examination focuses on studying past and present price action to predict the probability of Builders FirstSource's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Builders FirstSource's price. Additionally, you may evaluate how the addition of Builders FirstSource to your portfolios can decrease your overall portfolio volatility.