Vistra Energy Price To Earning vs. Net Income
Is there potential for Independent Power and Renewable Electricity Producers market expansion? Will Vistra introduce new products? Factors like these will boost the valuation of Vistra Energy. If investors know Vistra will grow in the future, the company's valuation will be higher. Understanding fair value requires weighing current performance against future potential. All the valuation information about Vistra Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Investors evaluate Vistra Energy Corp using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Vistra Energy's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Analysts utilize numerous techniques to assess fundamental value, seeking to purchase shares when trading prices fall beneath estimated intrinsic worth. External factors like market trends, sector rotation, and investor psychology can cause Vistra Energy's market price to deviate significantly from intrinsic value.
Please note, there is a significant difference between Vistra Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Vistra Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. Conversely, Vistra Energy's market price signifies the transaction level at which participants voluntarily complete trades.
Vistra Energy Corp Net Income vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Vistra Energy's current stock value. Our valuation model uses many indicators to compare Vistra Energy value to that of its competitors to determine the firm's financial worth. Vistra Energy Corp is rated third in price to earning category among its peers. It is rated fifth in net income category among its peers making up about 89,128,368 of Net Income per Price To Earning. Comparative valuation analysis is a catch-all technique that is used if you cannot value Vistra Energy 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.Vistra Net Income vs. Price To Earning
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.
Vistra Energy |
| = | 31.55 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.
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.
Vistra Energy |
| = | 2.81 B |
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.
Vistra Net Income Comparison
Vistra Energy is currently under evaluation in net income category among its peers.
Vistra Energy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Vistra Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Vistra Energy will eventually generate negative long term returns. The profitability progress is the general direction of Vistra Energy's change in net profit over the period of time. It can combine multiple indicators of Vistra Energy, 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.
Vistra Corp., together with its subsidiaries, operates as an integrated retail electricity and power generation company. Vistra Corp. was founded in 1882 and is based in Irving, Texas. Vistra Energy operates under UtilitiesIndependent Power Producers classification in the United States and is traded on New York Stock Exchange. It employs 5060 people.
Vistra Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Vistra Energy. 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 Vistra Energy 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 Vistra Energy's important profitability drivers and their relationship over time.
Vistra Energy Earnings per Share Projection vs Actual
Use Vistra Energy 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 Vistra Energy 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 Vistra Energy will appreciate offsetting losses from the drop in the long position's value.Vistra Energy Pair Trading
Vistra Energy Corp Pair Trading Analysis
The ability to find closely correlated positions to Vistra Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Vistra Energy 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 Vistra Energy - 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 Vistra Energy Corp to buy it.
The correlation of Vistra Energy 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 Vistra Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Vistra Energy 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 Vistra Energy 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 Vistra Energy position
In addition to having Vistra Energy 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 Vistra Stock Analysis
When running Vistra Energy's price analysis, check to measure Vistra Energy'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 Vistra Energy is operating at the current time. Most of Vistra Energy's value examination focuses on studying past and present price action to predict the probability of Vistra Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Vistra Energy's price. Additionally, you may evaluate how the addition of Vistra Energy to your portfolios can decrease your overall portfolio volatility.