Franklin BSP Current Valuation vs. EBITDA

FBRT-PE Preferred Stock  USD 21.25  0.12  0.56%   
Considering Franklin BSP's profitability and operating efficiency indicators, Franklin BSP Realty may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in January. Profitability indicators assess Franklin BSP's ability to earn profits and add value for shareholders.
For Franklin BSP profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Franklin BSP to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Franklin BSP Realty utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Franklin BSP's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Franklin BSP Realty over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Franklin BSP's value and its price as these two are different measures arrived at by different means. Investors typically determine if Franklin BSP is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Franklin BSP'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.

Franklin BSP Realty EBITDA vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Franklin BSP's current stock value. Our valuation model uses many indicators to compare Franklin BSP value to that of its competitors to determine the firm's financial worth.
Franklin BSP Realty is rated as one of the top companies in current valuation category among its peers. It also is one of the top stocks in ebitda category among its peers totaling about  0.01  of EBITDA per Current Valuation. The ratio of Current Valuation to EBITDA for Franklin BSP Realty is roughly  102.47 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Franklin BSP's earnings, one of the primary drivers of an investment's value.

Franklin Current Valuation vs. Competition

Franklin BSP Realty is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is currently estimated at about 26.79 Billion. Franklin BSP totals roughly 5.91 Billion in current valuation claiming about 22% of equities under Financials industry.

Franklin EBITDA vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Franklin BSP

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
5.91 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
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.

Franklin BSP

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
57.72 M
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.

Franklin EBITDA Comparison

Franklin BSP is currently under evaluation in ebitda category among its peers.

Franklin BSP Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Franklin BSP, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Franklin BSP will eventually generate negative long term returns. The profitability progress is the general direction of Franklin BSP's change in net profit over the period of time. It can combine multiple indicators of Franklin BSP, 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.
Franklin BSP Realty Trust, Inc., a real estate finance company, originates, acquires, and manages a portfolio of commercial real estate debt secured by properties located in the United States. Franklin BSP Realty Trust, Inc. was incorporated in 2012 and is headquartered in New York, New York. FRANKLIN BSP is traded on New York Stock Exchange in the United States.

Franklin Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Franklin BSP. 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 Franklin BSP 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 Franklin BSP's important profitability drivers and their relationship over time.

Use Franklin BSP 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 Franklin BSP 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 Franklin BSP will appreciate offsetting losses from the drop in the long position's value.

Franklin BSP Pair Trading

Franklin BSP Realty Pair Trading Analysis

The ability to find closely correlated positions to Franklin BSP could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Franklin BSP 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 Franklin BSP - 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 Franklin BSP Realty to buy it.
The correlation of Franklin BSP 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 Franklin BSP moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Franklin BSP Realty 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 Franklin BSP 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Franklin BSP position

In addition to having Franklin BSP 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.

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Run Hedge Favorites Thematic Idea Now

Hedge Favorites
Hedge Favorites Theme
Hedge Funds pool capital from accredited individuals or institutional investors and invest in a variety of assets, often with complex portfolio-construction and risk-management techniques. The Hedge Favorites theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Hedge Favorites Theme or any other thematic opportunities.
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Other Information on Investing in Franklin Preferred Stock

To fully project Franklin BSP's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Franklin BSP Realty at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Franklin BSP's income statement, its balance sheet, and the statement of cash flows.
Potential Franklin BSP investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Franklin BSP investors may work on each financial statement separately, they are all related. The changes in Franklin BSP's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Franklin BSP's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.