Westlake Chemical Shares Owned By Institutions vs. Price To Earning
Taking into consideration Westlake Chemical's profitability measurements, Westlake Chemical may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Westlake Chemical's ability to earn profits and add value for shareholders.
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For Westlake Chemical profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Westlake Chemical to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Westlake Chemical utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Westlake Chemical's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Westlake Chemical over time as well as its relative position and ranking within its peers.
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Is Commodity Chemicals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Westlake Chemical. If investors know Westlake will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Westlake Chemical listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Westlake Chemical is measured differently than its book value, which is the value of Westlake that is recorded on the company's balance sheet. Investors also form their own opinion of Westlake Chemical's value that differs from its market value or its book value, called intrinsic value, which is Westlake Chemical's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Westlake Chemical's market value can be influenced by many factors that don't directly affect Westlake Chemical's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Westlake Chemical's value and its price as these two are different measures arrived at by different means. Investors typically determine if Westlake Chemical is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Westlake Chemical'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.
Westlake Chemical Price To Earning vs. Shares Owned By Institutions Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Westlake Chemical's current stock value. Our valuation model uses many indicators to compare Westlake Chemical value to that of its competitors to determine the firm's financial worth. Westlake Chemical is rated below average in shares owned by institutions category among its peers. It also is rated below average in price to earning category among its peers reporting about 0.17 of Price To Earning per Shares Owned By Institutions. The ratio of Shares Owned By Institutions to Price To Earning for Westlake Chemical is roughly 5.91 . Comparative valuation analysis is a catch-all technique that is used if you cannot value Westlake Chemical by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Westlake Price To Earning vs. Shares Owned By Institutions
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.
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| = | 26.78 % |
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
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.
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| = | 4.53 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.
Westlake Price To Earning Comparison
Westlake Chemical is currently under evaluation in price to earning category among its peers.
Westlake Chemical Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Westlake Chemical, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Westlake Chemical will eventually generate negative long term returns. The profitability progress is the general direction of Westlake Chemical's change in net profit over the period of time. It can combine multiple indicators of Westlake Chemical, 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.
Westlake Corporation manufactures and supplies petrochemicals, polymers, and building products worldwide. The company was founded in 1986 and is headquartered in Houston, Texas. Westlake Corp operates under Specialty Chemicals classification in the United States and is traded on New York Stock Exchange. It employs 14550 people.
Westlake Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Westlake Chemical. 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 Westlake Chemical 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 Westlake Chemical's important profitability drivers and their relationship over time.
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To fully project Westlake Chemical's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Westlake Chemical 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 Westlake Chemical's income statement, its balance sheet, and the statement of cash flows.