Western Union Net Income vs. EBITDA
| WU Stock | MXN 222.00 0.00 0.00% |
For Western Union profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Western Union to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well The Western Union utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Western Union's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of The Western Union over time as well as its relative position and ranking within its peers.
Western |
Western Union EBITDA vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Western Union's current stock value. Our valuation model uses many indicators to compare Western Union value to that of its competitors to determine the firm's financial worth. The Western Union is rated first in net income category among its peers. It is rated first in ebitda category among its peers totaling about 1.42 of EBITDA per Net Income. Comparative valuation analysis is a catch-all model that can be used if you cannot value Western Union by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Western Union'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.Western EBITDA vs. Net Income
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.
Western Union |
| = | 910.6 M |
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.
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.
Western Union |
| = | 1.29 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.
Western EBITDA Comparison
Western Union is currently under evaluation in ebitda category among its peers.
Western Union Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Western Union, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Western Union will eventually generate negative long term returns. The profitability progress is the general direction of Western Union's change in net profit over the period of time. It can combine multiple indicators of Western Union, 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.
The Western Union Company provides money movement and payment services worldwide. The Western Union Company was founded in 1851 and is headquartered in Denver, Colorado. Western Union operates under Credit Services classification in Mexico and is traded on Mexico Stock Exchange. It employs 12000 people.
Western Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Western Union. 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 Western Union 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 Western Union's important profitability drivers and their relationship over time.
Use Western Union 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 Western Union 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 Western Union will appreciate offsetting losses from the drop in the long position's value.Western Union Pair Trading
The Western Union Pair Trading Analysis
The ability to find closely correlated positions to Western Union could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Western Union 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 Western Union - 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 The Western Union to buy it.
The correlation of Western Union 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 Western Union moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Western Union 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 Western Union 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 Western Union position
In addition to having Western Union 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 Western Stock Analysis
When running Western Union's price analysis, check to measure Western Union'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 Western Union is operating at the current time. Most of Western Union's value examination focuses on studying past and present price action to predict the probability of Western Union's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Western Union's price. Additionally, you may evaluate how the addition of Western Union to your portfolios can decrease your overall portfolio volatility.