PennyMac Mortgage Price To Earning vs. EBITDA

PMT-PA Preferred Stock  USD 24.27  0.05  0.21%   
Based on the measurements of profitability obtained from PennyMac Mortgage's financial statements, PennyMac Mortgage Investment may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in January. Profitability indicators assess PennyMac Mortgage's ability to earn profits and add value for shareholders.
For PennyMac Mortgage profitability analysis, we use financial ratios and fundamental drivers that measure the ability of PennyMac Mortgage to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well PennyMac Mortgage Investment utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between PennyMac Mortgage's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of PennyMac Mortgage Investment over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between PennyMac Mortgage's value and its price as these two are different measures arrived at by different means. Investors typically determine if PennyMac Mortgage is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PennyMac Mortgage'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.

PennyMac Mortgage EBITDA vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining PennyMac Mortgage's current stock value. Our valuation model uses many indicators to compare PennyMac Mortgage value to that of its competitors to determine the firm's financial worth.
PennyMac Mortgage Investment is regarded second in price to earning category among its peers. It also is regarded second in ebitda category among its peers totaling about  27,064,136  of EBITDA per Price To Earning. Comparative valuation analysis is a catch-all model that can be used if you cannot value PennyMac Mortgage by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for PennyMac Mortgage's Preferred 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.

PennyMac EBITDA 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.

PennyMac Mortgage

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
12.91 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.
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.

PennyMac Mortgage

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
349.4 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.

PennyMac EBITDA Comparison

PennyMac Mortgage is currently under evaluation in ebitda category among its peers.

PennyMac Mortgage Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in PennyMac Mortgage, profitability is also one of the essential criteria for including it into their portfolios because, without profit, PennyMac Mortgage will eventually generate negative long term returns. The profitability progress is the general direction of PennyMac Mortgage's change in net profit over the period of time. It can combine multiple indicators of PennyMac Mortgage, 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.
PennyMac Mortgage Investment Trust, a specialty finance company, invests primarily in residential mortgage loans and mortgage-related assets in the United States. The company was founded in 2009 and is based in Westlake Village, California. PennyMac Mortgage operates under REIT - Diversified classification in USA and is traded on New York Stock Exchange. It employs 3 people.

PennyMac Profitability Driver Comparison

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

Use PennyMac Mortgage 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 PennyMac Mortgage 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 PennyMac Mortgage will appreciate offsetting losses from the drop in the long position's value.

PennyMac Mortgage Pair Trading

PennyMac Mortgage Investment Pair Trading Analysis

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

In addition to having PennyMac Mortgage 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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Other Information on Investing in PennyMac Preferred Stock

To fully project PennyMac Mortgage's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of PennyMac Mortgage 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 PennyMac Mortgage's income statement, its balance sheet, and the statement of cash flows.
Potential PennyMac Mortgage investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although PennyMac Mortgage investors may work on each financial statement separately, they are all related. The changes in PennyMac Mortgage's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on PennyMac Mortgage's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.