Charles Schwab EBITDA vs. Price To Earning

SCHW Stock  USD 82.60  0.35  0.43%   
Based on the measurements of profitability obtained from Charles Schwab's financial statements, Charles Schwab's profitability may be sliding down. It has an above-average chance of reporting lower numbers next quarter. Profitability indicators assess Charles Schwab's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
10.6 B
Current Value
11.1 B
Quarterly Volatility
3.8 B
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Charles Schwab's EV To Sales is fairly stable compared to the past year. Sales General And Administrative To Revenue is likely to climb to 0.47 in 2024, whereas Days Sales Outstanding is likely to drop 846.63 in 2024. At this time, Charles Schwab's Operating Income is fairly stable compared to the past year. Income Before Tax is likely to climb to about 6.7 B in 2024, despite the fact that Total Other Income Expense Net is likely to grow to (3.4 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.90.542
Way Up
Slightly volatile
Net Profit Margin0.140.269
Way Down
Slightly volatile
Operating Profit Margin0.320.5269
Way Down
Slightly volatile
Pretax Profit Margin0.210.3386
Way Down
Slightly volatile
Return On Assets0.01390.0103
Significantly Up
Very volatile
Return On Equity0.20.1237
Way Up
Pretty Stable
For Charles Schwab profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Charles Schwab to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Charles Schwab Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Charles Schwab's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Charles Schwab Corp over time as well as its relative position and ranking within its peers.
  

Charles Schwab's Revenue Breakdown by Earning Segment

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Is Investment Banking & Brokerage 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 Charles Schwab. If investors know Charles 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 Charles Schwab 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
0.271
Dividend Share
1
Earnings Share
2.56
Revenue Per Share
10.263
Quarterly Revenue Growth
0.052
The market value of Charles Schwab Corp is measured differently than its book value, which is the value of Charles that is recorded on the company's balance sheet. Investors also form their own opinion of Charles Schwab's value that differs from its market value or its book value, called intrinsic value, which is Charles Schwab'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 Charles Schwab's market value can be influenced by many factors that don't directly affect Charles Schwab'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 Charles Schwab's value and its price as these two are different measures arrived at by different means. Investors typically determine if Charles Schwab is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Charles Schwab'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.

Charles Schwab Corp Price To Earning vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Charles Schwab's current stock value. Our valuation model uses many indicators to compare Charles Schwab value to that of its competitors to determine the firm's financial worth.
Charles Schwab Corp is currently regarded as top stock in ebitda category among its peers. It is rated second in price to earning category among its peers . The ratio of EBITDA to Price To Earning for Charles Schwab Corp is about  435,796,388 . At this time, Charles Schwab's EBITDA is fairly stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Charles Schwab 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.

Charles Price To Earning 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.

Charles Schwab

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
10.62 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.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Charles Schwab

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
24.36 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Charles Price To Earning Comparison

Charles Schwab is currently under evaluation in price to earning category among its peers.

Charles Schwab Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Charles Schwab, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Charles Schwab will eventually generate negative long term returns. The profitability progress is the general direction of Charles Schwab's change in net profit over the period of time. It can combine multiple indicators of Charles Schwab, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income-18.1 B-17.2 B
Operating Income9.9 B10.4 B
Income Before Tax6.4 B6.7 B
Net Income5.1 B5.3 B
Income Tax Expense1.3 B1.4 B
Total Other Income Expense Net-3.5 B-3.4 B
Net Income Applicable To Common Shares7.6 BB
Net Income From Continuing OpsB6.3 B
Net Interest Income10.3 B7.6 B
Interest Income16 BB
Change To Netincome963.7 MB
Net Income Per Share 2.78  2.92 
Income Quality 3.87  4.06 
Net Income Per E B T 0.79  0.54 

Charles Profitability Driver Comparison

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

Use Charles Schwab 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 Charles Schwab 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 Charles Schwab will appreciate offsetting losses from the drop in the long position's value.

Charles Schwab Pair Trading

Charles Schwab Corp Pair Trading Analysis

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

In addition to having Charles Schwab 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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Plastics
Plastics Theme
Companies manufacturing rubber and plastics accessories. The Plastics theme has 42 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 Plastics Theme or any other thematic opportunities.
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Additional Tools for Charles Stock Analysis

When running Charles Schwab's price analysis, check to measure Charles Schwab'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 Charles Schwab is operating at the current time. Most of Charles Schwab's value examination focuses on studying past and present price action to predict the probability of Charles Schwab's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Charles Schwab's price. Additionally, you may evaluate how the addition of Charles Schwab to your portfolios can decrease your overall portfolio volatility.