First Western Net Income vs. EBITDA
Considering First Western's profitability and operating efficiency indicators, First Western Financial may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess First Western's ability to earn profits and add value for shareholders.
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in census.
For First Western profitability analysis, we use financial ratios and fundamental drivers that measure the ability of First Western to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well First Western Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between First Western's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of First Western Financial over time as well as its relative position and ranking within its peers.
First |
Is Regional Banks 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 First Western. If investors know First 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 First Western listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of First Western Financial is measured differently than its book value, which is the value of First that is recorded on the company's balance sheet. Investors also form their own opinion of First Western's value that differs from its market value or its book value, called intrinsic value, which is First Western'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 First Western's market value can be influenced by many factors that don't directly affect First Western'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 First Western's value and its price as these two are different measures arrived at by different means. Investors typically determine if First Western is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, First Western'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.
First Western Financial EBITDA vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining First Western's current stock value. Our valuation model uses many indicators to compare First Western value to that of its competitors to determine the firm's financial worth. First Western Financial is rated below average in net income category among its peers. It is considered to be number one stock in ebitda category among its peers totaling about 1.81 of EBITDA per Net Income. Comparative valuation analysis is a catch-all technique that is used if you cannot value First Western 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.First EBITDA vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
First Western |
| = | 5.22 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.
First Western |
| = | 9.44 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.
First EBITDA Comparison
First Western is currently under evaluation in ebitda category among its peers.
First Western Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in First Western, profitability is also one of the essential criteria for including it into their portfolios because, without profit, First Western will eventually generate negative long term returns. The profitability progress is the general direction of First Western's change in net profit over the period of time. It can combine multiple indicators of First Western, 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.
First Western Financial, Inc., a financial holding company, provides wealth management, private banking, personal trust, investment management, mortgage lending, and institutional asset management services. First Western Financial, Inc. was incorporated in 2002 and is headquartered in Denver, Colorado. First Western operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 313 people.
First Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on First Western. 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 First Western 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 First Western's important profitability drivers and their relationship over time.
Use First Western 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 First Western 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 First Western will appreciate offsetting losses from the drop in the long position's value.First Western Pair Trading
First Western Financial Pair Trading Analysis
The ability to find closely correlated positions to Microsoft could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Microsoft 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 Microsoft - 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 Microsoft to buy it.
The correlation of Microsoft 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 Microsoft moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Microsoft 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 Microsoft 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 First Western position
In addition to having First Western 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?
Run Consumer Goods Thematic Idea Now
Consumer Goods
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Consumer Goods theme has 61 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 Consumer Goods Theme or any other thematic opportunities.
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Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in census. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Tools for First Stock
When running First Western's price analysis, check to measure First Western'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 First Western is operating at the current time. Most of First Western's value examination focuses on studying past and present price action to predict the probability of First Western's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move First Western's price. Additionally, you may evaluate how the addition of First Western to your portfolios can decrease your overall portfolio volatility.
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