Wayfair EBITDA vs. Return On Asset
| W Stock | USD 44.03 1.40 3.28% |
EBITDA | First Reported 2010-12-31 | Previous Quarter -295 M | Current Value -280.2 M | Quarterly Volatility 365.2 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.21 | 0.3055 |
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For Wayfair profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Wayfair to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Wayfair utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Wayfair's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Wayfair over time as well as its relative position and ranking within its peers.
Wayfair |
Wayfair's Revenue Breakdown by Earning Segment
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Is Homefurnishing Retail 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 Wayfair. If investors know Wayfair 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 Wayfair 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 (0.55) | Earnings Share (4.46) | Revenue Per Share 98.087 | Quarterly Revenue Growth (0.02) | Return On Assets (0.08) |
The market value of Wayfair is measured differently than its book value, which is the value of Wayfair that is recorded on the company's balance sheet. Investors also form their own opinion of Wayfair's value that differs from its market value or its book value, called intrinsic value, which is Wayfair'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 Wayfair's market value can be influenced by many factors that don't directly affect Wayfair'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 Wayfair's value and its price as these two are different measures arrived at by different means. Investors typically determine if Wayfair is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Wayfair'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.
Wayfair Return On Asset vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Wayfair's current stock value. Our valuation model uses many indicators to compare Wayfair value to that of its competitors to determine the firm's financial worth. Wayfair is rated below average in ebitda category among its peers. It is rated below average in return on asset category among its peers . Wayfair reported EBITDA of (295 Million) in 2023. Comparative valuation analysis is a catch-all technique that is used if you cannot value Wayfair 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.Wayfair Return On Asset 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.
Wayfair |
| = | (295 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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Wayfair |
| = | -0.0806 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Wayfair Return On Asset Comparison
Wayfair is currently under evaluation in return on asset category among its peers.
Wayfair Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Wayfair, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Wayfair will eventually generate negative long term returns. The profitability progress is the general direction of Wayfair's change in net profit over the period of time. It can combine multiple indicators of Wayfair, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -5 M | -4.8 M | |
| Operating Income | -813 M | -772.4 M | |
| Income Before Tax | -729 M | -692.5 M | |
| Total Other Income Expense Net | 84 M | 88.2 M | |
| Net Loss | -738 M | -701.1 M | |
| Income Tax Expense | 9 M | 9.4 M | |
| Net Loss | -915 M | -869.2 M | |
| Non Operating Income Net Other | 105.8 M | 111.1 M | |
| Net Loss | -1.2 B | -1.1 B | |
| Interest Income | 31.1 M | 41.2 M | |
| Net Interest Income | -23 M | -24.1 M | |
| Change To Netincome | 571.5 M | 600.1 M | |
| Net Loss | (6.47) | (6.80) | |
| Income Quality | (0.47) | (0.45) | |
| Net Income Per E B T | 1.01 | 1.10 |
Wayfair Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Wayfair. 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 Wayfair 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 Wayfair's important profitability drivers and their relationship over time.
Use Wayfair 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 Wayfair 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 Wayfair will appreciate offsetting losses from the drop in the long position's value.Wayfair Pair Trading
Wayfair Pair Trading Analysis
The ability to find closely correlated positions to Wayfair could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Wayfair 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 Wayfair - 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 Wayfair to buy it.
The correlation of Wayfair 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 Wayfair moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Wayfair 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 Wayfair 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 Wayfair position
In addition to having Wayfair 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 Wayfair Stock Analysis
When running Wayfair's price analysis, check to measure Wayfair'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 Wayfair is operating at the current time. Most of Wayfair's value examination focuses on studying past and present price action to predict the probability of Wayfair's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Wayfair's price. Additionally, you may evaluate how the addition of Wayfair to your portfolios can decrease your overall portfolio volatility.