First Wave Return On Equity vs. EBITDA

FWBIDelisted Stock  USD 0.61  0.03  4.69%   
Based on the measurements of profitability obtained from First Wave's financial statements, First Wave BioPharma may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess First Wave's ability to earn profits and add value for shareholders.
For First Wave profitability analysis, we use financial ratios and fundamental drivers that measure the ability of First Wave to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well First Wave BioPharma utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between First Wave's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of First Wave BioPharma over time as well as its relative position and ranking within its peers.
  
Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics.
Please note, there is a significant difference between First Wave's value and its price as these two are different measures arrived at by different means. Investors typically determine if First Wave is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, First Wave'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.

First Wave BioPharma EBITDA vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining First Wave's current stock value. Our valuation model uses many indicators to compare First Wave value to that of its competitors to determine the firm's financial worth.
First Wave BioPharma is rated # 2 in return on equity category among its peers. It is rated below average in ebitda category among its peers . 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 First Wave's earnings, one of the primary drivers of an investment's value.

First EBITDA vs. Return On Equity

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.

First Wave

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.15
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.
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.

First Wave

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
(15.74 M)
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.

First EBITDA Comparison

First Wave is currently under evaluation in ebitda category among its peers.

First Wave Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in First Wave, profitability is also one of the essential criteria for including it into their portfolios because, without profit, First Wave will eventually generate negative long term returns. The profitability progress is the general direction of First Wave's change in net profit over the period of time. It can combine multiple indicators of First Wave, 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.
First Wave BioPharma, Inc., a clinical-stage biopharmaceutical company, engages in the research and development of targeted and non-systemic therapies for the treatment of patients with gastrointestinal diseases. First Wave BioPharma, Inc. was incorporated in 2014 and is headquartered in Boca Raton, Florida. First Wave operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 17 people.

First Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on First Wave. 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 First Wave 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 First Wave's important profitability drivers and their relationship over time.

Use First Wave 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 First Wave 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 First Wave will appreciate offsetting losses from the drop in the long position's value.

First Wave Pair Trading

First Wave BioPharma Pair Trading Analysis

The ability to find closely correlated positions to First Wave could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace First Wave 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 First Wave - 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 First Wave BioPharma to buy it.
The correlation of First Wave 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 First Wave moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if First Wave BioPharma 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 First Wave 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your First Wave position

In addition to having First Wave 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.

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Run Power Assets Thematic Idea Now

Power Assets
Power Assets Theme
Large capitalization equities showing high long-term performance indicators and above average return expectations based on Macroaxis rating system. The Power Assets theme has 49 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 Power Assets Theme or any other thematic opportunities.
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Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics.
You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

Other Consideration for investing in First Stock

If you are still planning to invest in First Wave BioPharma 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 First Wave's history and understand the potential risks before investing.
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