Webster Financial Current Valuation vs. Return On Equity
| WBS Stock | USD 62.02 0.80 1.27% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.8 | 0.9 |
|
| |||||
| Net Profit Margin | 0.36 | 0.3471 |
|
| |||||
| Operating Profit Margin | 0.41 | 0.4364 |
|
| |||||
| Pretax Profit Margin | 0.46 | 0.4338 |
|
| |||||
| Return On Assets | 0.0122 | 0.0116 |
|
| |||||
| Return On Equity | 0.0657 | 0.0999 |
|
|
For Webster Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Webster Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Webster Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Webster Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Webster Financial over time as well as its relative position and ranking within its peers.
Webster |
Webster Financial's Revenue Breakdown by Earning Segment
Check out Your Current Watchlist.
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 Webster Financial. If investors know Webster 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 Webster Financial 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 (0.14) | Dividend Share 1.6 | Earnings Share 4.42 | Revenue Per Share 13.933 | Quarterly Revenue Growth (0.07) |
The market value of Webster Financial is measured differently than its book value, which is the value of Webster that is recorded on the company's balance sheet. Investors also form their own opinion of Webster Financial's value that differs from its market value or its book value, called intrinsic value, which is Webster Financial'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 Webster Financial's market value can be influenced by many factors that don't directly affect Webster Financial'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 Webster Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Webster Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Webster Financial'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.
Webster Financial Return On Equity vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Webster Financial's current stock value. Our valuation model uses many indicators to compare Webster Financial value to that of its competitors to determine the firm's financial worth. Webster Financial is rated first in current valuation category among its peers. It is rated second in return on equity category among its peers . The ratio of Current Valuation to Return On Equity for Webster Financial is about 136,690,480,448 . At this time, Webster Financial's Return On Equity is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Webster Financial 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.Webster Current Valuation vs. Competition
Webster Financial is rated first in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is at this time estimated at about 115.12 Billion. Webster Financial retains roughly 12.21 Billion in current valuation claiming about 11% of equities under Financials industry.
Webster Return On Equity 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.
Webster Financial |
| = | 12.21 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.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Webster Financial |
| = | 0.0893 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Webster Return On Equity Comparison
Webster Financial is currently under evaluation in return on equity category among its peers.
Webster Financial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Webster Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Webster Financial will eventually generate negative long term returns. The profitability progress is the general direction of Webster Financial's change in net profit over the period of time. It can combine multiple indicators of Webster Financial, 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 | -550.6 M | -523 M | |
| Operating Income | 1.1 B | 1.1 B | |
| Net Income | 859.9 M | 902.9 M | |
| Income Tax Expense | 216.7 M | 227.5 M | |
| Income Before Tax | 1.1 B | 1.1 B | |
| Total Other Income Expense Net | -6.5 M | -6.8 M | |
| Net Income Applicable To Common Shares | 722.6 M | 758.7 M | |
| Net Income From Continuing Ops | 927.2 M | 973.6 M | |
| Net Interest Income | 2.4 B | 1.3 B | |
| Interest Income | 3.4 B | 3.6 B | |
| Change To Netincome | 266.3 M | 279.7 M | |
| Net Income Per Share | 5.05 | 5.30 | |
| Income Quality | 1.14 | 1.84 | |
| Net Income Per E B T | 0.80 | 0.83 |
Webster Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Webster Financial. 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 Webster Financial 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 Webster Financial's important profitability drivers and their relationship over time.
Learn to be your own money manager
Our tools can tell you how much better you can do entering a position in Webster Financial without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
Run Global Correlations Now
Global CorrelationsFind global opportunities by holding instruments from different markets |
| All Next | Launch Module |
Use Investing Themes to Complement your Webster Financial position
In addition to having Webster Financial 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 Municipals ETFs Thematic Idea Now
Municipals ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Municipals ETFs theme has 111 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 Municipals ETFs Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Tools for Webster Stock Analysis
When running Webster Financial's price analysis, check to measure Webster Financial'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 Webster Financial is operating at the current time. Most of Webster Financial's value examination focuses on studying past and present price action to predict the probability of Webster Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Webster Financial's price. Additionally, you may evaluate how the addition of Webster Financial to your portfolios can decrease your overall portfolio volatility.