Webster Financial Price To Book vs. Price To Sales

WBS Stock  USD 62.02  0.80  1.27%   
Taking into consideration Webster Financial's profitability measurements, Webster Financial's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Webster Financial's ability to earn profits and add value for shareholders. At this time, Webster Financial's Days Sales Outstanding is comparatively stable compared to the past year. EV To Sales is likely to gain to 6.77 in 2024, whereas Sales General And Administrative To Revenue is likely to drop 0.26 in 2024. At this time, Webster Financial's Net Income Per Share is comparatively stable compared to the past year. Income Quality is likely to gain to 1.84 in 2024, whereas Total Other Income Expense Net is likely to drop (6.8 M) in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.80.9
Fairly Down
Slightly volatile
Net Profit Margin0.360.3471
Sufficiently Up
Slightly volatile
Operating Profit Margin0.410.4364
Notably Down
Slightly volatile
Pretax Profit Margin0.460.4338
Notably Up
Slightly volatile
Return On Assets0.01220.0116
Notably Up
Slightly volatile
Return On Equity0.06570.0999
Way Down
Slightly volatile
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 Financial's Revenue Breakdown by Earning Segment

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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 Price To Sales vs. Price To Book 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 below average in price to book category among its peers. It is rated fifth in price to sales category among its peers fabricating about  3.71  of Price To Sales per Price To Book. At this time, Webster Financial's Price To Sales Ratio 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 Price To Sales vs. Price To Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Webster Financial

P/B

 = 

MV Per Share

BV Per Share

 = 
1.21 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Webster Financial

P/S

 = 

MV Per Share

Revenue Per Share

 = 
4.49 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Webster Price To Sales Comparison

Webster Financial is currently under evaluation in price to sales 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income-550.6 M-523 M
Operating Income1.1 B1.1 B
Net Income859.9 M902.9 M
Income Tax Expense216.7 M227.5 M
Income Before Tax1.1 B1.1 B
Total Other Income Expense Net-6.5 M-6.8 M
Net Income Applicable To Common Shares722.6 M758.7 M
Net Income From Continuing Ops927.2 M973.6 M
Net Interest Income2.4 B1.3 B
Interest Income3.4 B3.6 B
Change To Netincome266.3 M279.7 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.

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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.