Willis Towers EBITDA vs. Price To Earning
WTY Stock | EUR 304.00 0.00 0.00% |
For Willis Towers profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Willis Towers to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Willis Towers Watson utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Willis Towers's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Willis Towers Watson over time as well as its relative position and ranking within its peers.
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Willis Towers Watson Price To Earning vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Willis Towers's current stock value. Our valuation model uses many indicators to compare Willis Towers value to that of its competitors to determine the firm's financial worth. Willis Towers Watson is rated fifth in ebitda category among its peers. It is rated second in price to earning category among its peers . The ratio of EBITDA to Price To Earning for Willis Towers Watson is about 53,176,128 . 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 Willis Towers' earnings, one of the primary drivers of an investment's value.Willis Price To Earning 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.
Willis Towers |
| = | 2.21 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.
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.
Willis Towers |
| = | 41.56 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.
Willis Price To Earning Comparison
Willis Towers is rated first in price to earning category among its peers.
Willis Towers Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Willis Towers, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Willis Towers will eventually generate negative long term returns. The profitability progress is the general direction of Willis Towers' change in net profit over the period of time. It can combine multiple indicators of Willis Towers, 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.
Willis Towers Watson Public Limited Company operates as an advisory, broking, and solutions company worldwide. Willis Towers Watson Public Limited Company was founded in 1828 and is based in London, the United Kingdom. Willis Towers is traded on Frankfurt Stock Exchange in Germany.
Willis Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Willis Towers. 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 Willis Towers 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 Willis Towers' important profitability drivers and their relationship over time.
Use Willis Towers 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 Willis Towers 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 Willis Towers will appreciate offsetting losses from the drop in the long position's value.Willis Towers Pair Trading
Willis Towers Watson Pair Trading Analysis
The ability to find closely correlated positions to Willis Towers could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Willis Towers 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 Willis Towers - 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 Willis Towers Watson to buy it.
The correlation of Willis Towers 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 Willis Towers moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Willis Towers Watson 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 Willis Towers 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 Willis Towers position
In addition to having Willis Towers 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 Information and Resources on Investing in Willis Stock
When determining whether Willis Towers Watson is a strong investment it is important to analyze Willis Towers' 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 Willis Towers' future performance. For an informed investment choice regarding Willis Stock, refer to the following important reports:Check out Your Current Watchlist. You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
To fully project Willis Towers' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Willis Towers Watson 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 Willis Towers' income statement, its balance sheet, and the statement of cash flows.