WESTLAKE CHEMICAL Current Valuation vs. EBITDA
| UEO Stock | EUR 122.00 1.00 0.83% |
For WESTLAKE CHEMICAL profitability analysis, we use financial ratios and fundamental drivers that measure the ability of WESTLAKE CHEMICAL to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well WESTLAKE CHEMICAL utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between WESTLAKE CHEMICAL's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of WESTLAKE CHEMICAL over time as well as its relative position and ranking within its peers.
WESTLAKE |
WESTLAKE CHEMICAL EBITDA vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining WESTLAKE CHEMICAL's current stock value. Our valuation model uses many indicators to compare WESTLAKE CHEMICAL value to that of its competitors to determine the firm's financial worth. WESTLAKE CHEMICAL is rated first in current valuation category among its peers. It is rated first in ebitda category among its peers totaling about 0.26 of EBITDA per Current Valuation. The ratio of Current Valuation to EBITDA for WESTLAKE CHEMICAL is roughly 3.88 . 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 WESTLAKE CHEMICAL's earnings, one of the primary drivers of an investment's value.WESTLAKE Current Valuation vs. Competition
WESTLAKE CHEMICAL is rated first in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Other industry is at this time estimated at about 38.5 Billion. WESTLAKE CHEMICAL totals roughly 16.22 Billion in current valuation claiming about 42% of all equities under Other industry.
WESTLAKE 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.
WESTLAKE CHEMICAL |
| = | 16.22 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.
WESTLAKE CHEMICAL |
| = | 4.18 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.
WESTLAKE EBITDA Comparison
WESTLAKE CHEMICAL is currently under evaluation in ebitda category among its peers.
WESTLAKE Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on WESTLAKE CHEMICAL. 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 WESTLAKE CHEMICAL 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 WESTLAKE CHEMICAL's important profitability drivers and their relationship over time.
Use WESTLAKE CHEMICAL 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 WESTLAKE CHEMICAL 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 WESTLAKE CHEMICAL will appreciate offsetting losses from the drop in the long position's value.WESTLAKE CHEMICAL Pair Trading
WESTLAKE CHEMICAL Pair Trading Analysis
The ability to find closely correlated positions to WESTLAKE CHEMICAL could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace WESTLAKE CHEMICAL 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 WESTLAKE CHEMICAL - 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 WESTLAKE CHEMICAL to buy it.
The correlation of WESTLAKE CHEMICAL 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 WESTLAKE CHEMICAL moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if WESTLAKE CHEMICAL 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 WESTLAKE CHEMICAL 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 WESTLAKE CHEMICAL position
In addition to having WESTLAKE CHEMICAL 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 Recreation Thematic Idea Now
Recreation
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Recreation theme has 33 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 Recreation Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Tools for WESTLAKE Stock Analysis
When running WESTLAKE CHEMICAL's price analysis, check to measure WESTLAKE CHEMICAL'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 WESTLAKE CHEMICAL is operating at the current time. Most of WESTLAKE CHEMICAL's value examination focuses on studying past and present price action to predict the probability of WESTLAKE CHEMICAL's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move WESTLAKE CHEMICAL's price. Additionally, you may evaluate how the addition of WESTLAKE CHEMICAL to your portfolios can decrease your overall portfolio volatility.