Woodside Energy Beta vs. Return On Equity
| WOP0 Stock | 14.02 0.12 0.86% |
For Woodside Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Woodside Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Woodside Energy Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Woodside Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Woodside Energy Group over time as well as its relative position and ranking within its peers.
Woodside |
Woodside Energy Group Return On Equity vs. Beta Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Woodside Energy's current stock value. Our valuation model uses many indicators to compare Woodside Energy value to that of its competitors to determine the firm's financial worth. Woodside Energy Group is rated below average in beta category among its peers. It is rated below average in return on equity category among its peers reporting about 0.28 of Return On Equity per Beta. The ratio of Beta to Return On Equity for Woodside Energy Group is roughly 3.58 . 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 Woodside Energy's earnings, one of the primary drivers of an investment's value.Woodside Return On Equity vs. Beta
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Woodside Energy |
| = | 0.92 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
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.
Woodside Energy |
| = | 0.26 |
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.
Woodside Return On Equity Comparison
Woodside Energy is rated fifth in return on equity category among its peers.
Beta Analysis
Woodside Energy returns are very sensitive to returns on the market. As the market goes up or down, Woodside Energy is expected to follow.
Woodside Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Woodside Energy. 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 Woodside Energy 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 Woodside Energy's important profitability drivers and their relationship over time.
Use Woodside Energy 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 Woodside Energy 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 Woodside Energy will appreciate offsetting losses from the drop in the long position's value.Woodside Energy Pair Trading
Woodside Energy Group Pair Trading Analysis
The ability to find closely correlated positions to Woodside 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 Woodside 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 Woodside 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 Woodside Energy Group to buy it.
The correlation of Woodside 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 Woodside Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Woodside Energy Group 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 Woodside 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 Woodside Energy position
In addition to having Woodside Energy 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 Gold and Gold Mining Thematic Idea Now
Gold and Gold Mining
Large and mid-size companies, ETFs and funds that are either investing, exploring or producing, gold or indirectly involved in trading or making gold products. The Gold and Gold Mining theme has 100 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 Gold and Gold Mining Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Woodside Stock
When determining whether Woodside Energy Group is a strong investment it is important to analyze Woodside Energy's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Woodside Energy's future performance. For an informed investment choice regarding Woodside Stock, refer to the following important reports:Check out Your Current Watchlist. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
To fully project Woodside Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Woodside Energy Group 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 Woodside Energy's income statement, its balance sheet, and the statement of cash flows.