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Analysis of UBS Stock Price

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BS Analysis UBS Financials The table below presents a few of the most important financial key statistics of UBS as of 11 Mar 2014 (currency in USD). Income Statement Revenue (TTM) 33.43B Revenue (Quarterly YOY Growth) 1.95% EPS Diluted (TTM) 0.8985 Net Income (TTM) 3.651B Profitability Profit Margin (Quarterly) 14.50% Dividend Dividend Yield 1.36% Dividend 0.28 Current Valuation Market Cap 80.45B Enterprise Value 64.84B Price to Book Value 1.494 P/E (TTM) 23.6 EPS (TTM) 0.89 Other Beta 1.79 Figure 1 - UBS Financial Key Statistics UBS Strategy & Achievements Given the changing operating and regulatory environment and the issues encountered as described in section 2 above, UBS has finalized a new …show more content…

As compared to its peers, such as Credit Suisse, JP Morgan, Deutsche Bank as well as compared to the market, we can see a clear over-performance of UBS before the crisis with a huge crash though when the crisis hit (larger than the one of its peers and the market), which is why the Swiss authorities had to intervene to support UBS as presented in section 2 above. Overall, UBS has had a larger beta (risk) in comparison with the market as well as its peers, as shown by its share price performance both in good (even booming) economic environment as well as in a bad one. However, we can see a positive trend within the last year. UBS seems to be recovering much faster than its peers and over-performing the market. I believe this is due to the institution strengthening in terms of capital adequacy, liquidity, risk and cost reduction strategy adopted by UBS in 2011, as described in section 3B. Recent Risks & Mitigation Measures A few risks and recent issues should be taken into consideration given a possible investment in UBS shares: On 15 September 2011 , UBS announced the discovery of unauthorized trading – which had been covered by the recording of fictitious trades – done by a trader part of its investment bank in London, which lead UBS to incur a loss of USD 2.3 billion. Given the fact that UBS came forth with this, it avoided even larger losses that would have resulted from much higher fines. All over the world regulatory authorities are

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