Willbros Price To Earning vs. Price To Book
Based on Willbros' profitability indicators, Willbros Group may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in May. Profitability indicators assess Willbros' ability to earn profits and add value for shareholders.
Check out Your Current Watchlist to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in price.
Please note, there is a significant difference between Willbros' value and its price as these two are different measures arrived at by different means. Investors typically determine if Willbros is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Willbros' 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.
For Willbros profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Willbros to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Willbros Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Willbros's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Willbros Group over time as well as its relative position and ranking within its peers.
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Willbros Group Price To Book vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Willbros's current stock value. Our valuation model uses many indicators to compare Willbros value to that of its competitors to determine the firm's financial worth. Willbros Group is rated below average in price to earning category among related companies. It is rated below average in price to book category among related companies . Comparative valuation analysis is a catch-all model that can be used if you cannot value Willbros by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Willbros' 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. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Willbros' earnings, one of the primary drivers of an investment's value.Willbros Price To Book vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
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| = | (4.13) X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
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.
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| = | 0.11 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.
Willbros Price To Book Comparison
Willbros is currently under evaluation in price to book category among related companies.
Willbros Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Willbros, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Willbros will eventually generate negative long term returns. The profitability progress is the general direction of Willbros' change in net profit over the period of time. It can combine multiple indicators of Willbros, 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.
Willbros Group, Inc., through its subsidiaries, operates as a specialty energy infrastructure contractor serving oil and gas, and power industries in the United States and Canada. Willbros Group, Inc. was founded in 1908 and is headquartered in Houston, Texas. Willbros operates under Oil Gas Equipment Services classification in USA and traded on New York Stock Exchange. It employs 3165 people.
Willbros Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Willbros. 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 Willbros 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 Willbros' important profitability drivers and their relationship over time.
Use Willbros 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 Willbros 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 Willbros will appreciate offsetting losses from the drop in the long position's value.Willbros Pair Trading
Willbros Group Pair Trading Analysis
The ability to find closely correlated positions to Valero Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Valero Energy 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 Valero Energy - 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 Valero Energy to buy it.
The correlation of Valero Energy 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 Valero Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Valero Energy 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 Valero Energy 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 Willbros position
In addition to having Willbros 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 Construction Thematic Idea Now
Construction
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Construction 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 Construction Theme or any other thematic opportunities.
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Check out Your Current Watchlist to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in price. Note that the Willbros Group information on this page should be used as a complementary analysis to other Willbros' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Consideration for investing in Willbros Stock
If you are still planning to invest in Willbros Group check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Willbros' history and understand the potential risks before investing.
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