Western Alliance Profit Margin vs. Current Valuation
| WAL-PA Preferred Stock | USD 22.10 0.04 0.18% |
For Western Alliance profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Western Alliance to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Western Alliance Bancorporation utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Western Alliance's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Western Alliance Bancorporation over time as well as its relative position and ranking within its peers.
Western |
Western Alliance Ban Current Valuation vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Western Alliance's current stock value. Our valuation model uses many indicators to compare Western Alliance value to that of its competitors to determine the firm's financial worth. Western Alliance Bancorporation is rated first in profit margin category among its peers. It is rated first in current valuation category among its peers reporting about 28,551,812,220 of Current Valuation per Profit Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value Western Alliance by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Western Alliance'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.Western Current Valuation vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Western Alliance |
| = | 0.36 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Western Alliance |
| = | 10.39 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Western Current Valuation vs Competition
Western Alliance Bancorporation is rated first in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is at this time estimated at about (475.9 Billion). Western Alliance adds roughly 10.39 Billion in current valuation claiming only tiny portion of equities under Financials industry.
Western Alliance Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Western Alliance, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Western Alliance will eventually generate negative long term returns. The profitability progress is the general direction of Western Alliance's change in net profit over the period of time. It can combine multiple indicators of Western Alliance, 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.
Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. Western Alliance Bancorporation was founded in 1994 and is headquartered in Phoenix, Arizona. WESTERN ALLIANCE operates under BanksRegional classification in the United States and is traded on New York Stock Exchange. It employs 3368 people.
Western Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Western Alliance. 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 Western Alliance 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 Western Alliance's important profitability drivers and their relationship over time.
Use Western Alliance 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 Western Alliance 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 Western Alliance will appreciate offsetting losses from the drop in the long position's value.Western Alliance Pair Trading
Western Alliance Bancorporation Pair Trading Analysis
The ability to find closely correlated positions to Western Alliance could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Western Alliance 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 Western Alliance - 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 Western Alliance Bancorporation to buy it.
The correlation of Western Alliance 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 Western Alliance moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Western Alliance Ban 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 Western Alliance 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 Western Alliance position
In addition to having Western Alliance 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 Farming Thematic Idea Now
Farming
Companies producing farming products and providing services for farmers. The Farming theme has 37 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 Farming Theme or any other thematic opportunities.
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Other Information on Investing in Western Preferred Stock
To fully project Western Alliance's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Western Alliance Ban 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 Western Alliance's income statement, its balance sheet, and the statement of cash flows.