Analysis of UBS Stock Price Essay -- UBS Financial Case Study

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 strategy for the group at the end of 2011 in order to properly address such challenges – according to the Board Members & CEO letter to shareholders included within the 2012 Annual Report. The board members and CEO considered this strategy should focus on the firm’s guiding principles regarding client focus, capital strength, enhanced risk controls and concentration on improving operational efficiency. The business of UBS will continue to focus on wealth management businesses and leading universal bank in Switzerland, complemented by Global Asset Management and the Investment Bank. Acting upon this strategy, several group-wide cost reduction and efficiency measures were implemented while operational risk controls were also highly strengthened. One of the main focus points of the bank was the implementation of the new Basel III requirements and has reached the following levels of performance as of end of 2012: Item UBS (end of 2012) Basel III Requirement Equity tier 1 ratio (fully applied) 9... .... All in all, I believe investing in UBS shares for long-term is a good strategy for obtaining higher future returns. Works Cited http://en.wikipedia.org/wiki/UBS , 11 March 2014 http://en.wikipedia.org/wiki/UBS , 11 March 2014 Financial Stability Board, Peer Review of Switzerland, Review Report, 2012, https://www.financialstabilityboard.org/publications/r_250112.htm Financial Stability Board, Peer Review of Switzerland, Review Report, 2012, https://www.financialstabilityboard.org/publications/r_250112.htm Figure taken from 2012 UBS Annual Report http://ycharts.com/companies/UNLYF , 11 March 2014 https://www.google.com/finance?q=nyse:UBS, 13 March 2014 2012 UBS Annual Report Fourth Quarter 2013 UBS Report http://www.ubs.com/1/e/unauthorizedtrading.html, 11 March 2014 Zacks Investment Research, www.zacks.com, 15 Jan 2014