Wipro EBITDA vs. Working Capital
| WIPRO Stock | 577.85 5.65 0.99% |
EBITDA | First Reported 2010-12-31 | Previous Quarter 192.4 B | Current Value 202 B | Quarterly Volatility 54.2 B |
For Wipro profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Wipro to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Wipro Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Wipro's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Wipro Limited over time as well as its relative position and ranking within its peers.
Wipro |
Wipro Limited Working Capital vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Wipro's current stock value. Our valuation model uses many indicators to compare Wipro value to that of its competitors to determine the firm's financial worth. Wipro Limited is rated first in ebitda category among its peers. It is rated first in working capital category among its peers reporting about 2.07 of Working Capital per EBITDA. At this time, Wipro's EBITDA is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Wipro by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Wipro's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Wipro Working Capital 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.
Wipro |
| = | 192.37 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.
Working Capital is a measure of company efficiency and operating liquidity. The working capital is usually calculated by subtracting Current Liabilities from Current Assets. It is an important indicator of the firm ability to continue its normal operations without additional debt obligations. .
Wipro |
| = | 398.2 B |
Working Capital can be positive or negative, depending on how much of current debt the company is carrying on its balance sheet. In general terms, companies that have a lot of working capital will experience more growth in the near future since they can expand and improve their operations using existing resources. On the other hand, companies with small or negative working capital may lack the funds necessary for growth or future operation. Working Capital also shows if the company has sufficient liquid resources to satisfy short-term liabilities and operational expenses.
Wipro Working Capital Comparison
Wipro is currently under evaluation in working capital category among its peers.
Wipro Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Wipro, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Wipro will eventually generate negative long term returns. The profitability progress is the general direction of Wipro's change in net profit over the period of time. It can combine multiple indicators of Wipro, 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 | 105.2 B | 110.5 B | |
| Operating Income | 135.4 B | 71.4 B | |
| Income Before Tax | 147.2 B | 79.8 B | |
| Total Other Income Expense Net | 11.8 B | 12.4 B | |
| Net Income | 110.5 B | 64 B | |
| Income Tax Expense | 36.1 B | 37.9 B | |
| Net Income From Continuing Ops | 111.1 B | 106.4 B | |
| Net Income Applicable To Common Shares | 130.5 B | 104.4 B | |
| Interest Income | 19.5 B | 12.6 B | |
| Net Interest Income | 6.9 B | 9.7 B | |
| Change To Netincome | 81.7 M | 85.7 M |
Wipro Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Wipro. 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 Wipro 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 Wipro's important profitability drivers and their relationship over time.
Use Wipro 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 Wipro 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 Wipro will appreciate offsetting losses from the drop in the long position's value.Wipro Pair Trading
Wipro Limited Pair Trading Analysis
The ability to find closely correlated positions to Wipro could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Wipro 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 Wipro - 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 Wipro Limited to buy it.
The correlation of Wipro 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 Wipro moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Wipro Limited 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 Wipro 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 Wipro position
In addition to having Wipro 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 Personal Services Thematic Idea Now
Personal Services
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Personal Services theme has 61 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 Personal Services Theme or any other thematic opportunities.
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Other Information on Investing in Wipro Stock
To fully project Wipro's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Wipro Limited at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Wipro's income statement, its balance sheet, and the statement of cash flows.