Headwaters Price To Earning vs. Price To Book
Based on Headwaters' profitability indicators, Headwaters may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in June. Profitability indicators assess Headwaters' ability to earn profits and add value for shareholders.
Check out Risk vs Return Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in housing.
Please note, there is a significant difference between Headwaters' value and its price as these two are different measures arrived at by different means. Investors typically determine if Headwaters is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Headwaters' 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.
For Headwaters profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Headwaters to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Headwaters utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Headwaters's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Headwaters over time as well as its relative position and ranking within its peers.
Headwaters |
Headwaters Price To Book vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Headwaters's current stock value. Our valuation model uses many indicators to compare Headwaters value to that of its competitors to determine the firm's financial worth. Headwaters is rated # 2 in price to earning category among related companies. It is one of the top stocks in price to book category among related companies fabricating about 0.14 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Headwaters is roughly 7.27 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Headwaters by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Headwaters' 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. 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 Headwaters' earnings, one of the primary drivers of an investment's value.Headwaters Price To Book 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.
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| = | 42.83 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.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Headwaters |
| = | 5.89 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Headwaters Price To Book Comparison
Headwaters is currently under evaluation in price to book category among related companies.
Headwaters Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Headwaters, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Headwaters will eventually generate negative long term returns. The profitability progress is the general direction of Headwaters' change in net profit over the period of time. It can combine multiple indicators of Headwaters, 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.
Headwaters Incorporated, a building materials company, offer solutions and services to building and construction materials sectors primarily in the United States and Canada.
Headwaters Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Headwaters. 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 Headwaters 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 Headwaters' important profitability drivers and their relationship over time.
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Check out Risk vs Return Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in housing. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Consideration for investing in Headwaters Stock
If you are still planning to invest in Headwaters check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Headwaters' history and understand the potential risks before investing.
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