Avis Budget Group Stock Market Value
| CAR Stock | USD 109.07 0.23 0.21% |
| Symbol | Avis |
Avis Budget Group Price To Book Ratio
Is Passenger Ground Transportation 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 Avis Budget. If investors know Avis 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 Avis Budget listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.60) | Earnings Share 11.21 | Revenue Per Share 331.969 | Quarterly Revenue Growth (0.02) | Return On Assets 0.0329 |
The market value of Avis Budget Group is measured differently than its book value, which is the value of Avis that is recorded on the company's balance sheet. Investors also form their own opinion of Avis Budget's value that differs from its market value or its book value, called intrinsic value, which is Avis Budget'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 Avis Budget's market value can be influenced by many factors that don't directly affect Avis Budget'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 Avis Budget's value and its price as these two are different measures arrived at by different means. Investors typically determine if Avis Budget is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Avis Budget'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.
Avis Budget 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Avis Budget's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Avis Budget.
| 09/01/2024 |
| 11/30/2024 |
If you would invest 0.00 in Avis Budget on September 1, 2024 and sell it all today you would earn a total of 0.00 from holding Avis Budget Group or generate 0.0% return on investment in Avis Budget over 90 days. Avis Budget is related to or competes with Hertz Global, Ryder System, HE Equipment, United Rentals, Herc Holdings, U Haul, and Air Lease. Avis Budget Group, Inc., together with its subsidiaries, provides car and truck rentals, car sharing, and ancillary prod... More
Avis Budget Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Avis Budget's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Avis Budget Group upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 3.09 | |||
| Information Ratio | 0.1025 | |||
| Maximum Drawdown | 16.84 | |||
| Value At Risk | (4.47) | |||
| Potential Upside | 6.48 |
Avis Budget Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Avis Budget's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Avis Budget's standard deviation. In reality, there are many statistical measures that can use Avis Budget historical prices to predict the future Avis Budget's volatility.| Risk Adjusted Performance | 0.1152 | |||
| Jensen Alpha | 0.1529 | |||
| Total Risk Alpha | (0.11) | |||
| Sortino Ratio | 0.1205 | |||
| Treynor Ratio | 0.1839 |
Avis Budget Group Backtested Returns
Avis Budget appears to be very steady, given 3 months investment horizon. Avis Budget Group secures Sharpe Ratio (or Efficiency) of 0.18, which signifies that the company had a 0.18% return per unit of risk over the last 3 months. By analyzing Avis Budget's technical indicators, you can evaluate if the expected return of 0.65% is justified by implied risk. Please makes use of Avis Budget's Risk Adjusted Performance of 0.1152, downside deviation of 3.09, and Mean Deviation of 2.78 to double-check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Avis Budget holds a performance score of 14. The firm shows a Beta (market volatility) of 2.72, which signifies a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Avis Budget will likely underperform. Please check Avis Budget's jensen alpha, semi variance, day typical price, as well as the relationship between the maximum drawdown and accumulation distribution , to make a quick decision on whether Avis Budget's price patterns will revert.
Auto-correlation | 0.66 |
Good predictability
Avis Budget Group has good predictability. Overlapping area represents the amount of predictability between Avis Budget time series from 1st of September 2024 to 16th of October 2024 and 16th of October 2024 to 30th of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Avis Budget Group price movement. The serial correlation of 0.66 indicates that around 66.0% of current Avis Budget price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.66 | |
| Spearman Rank Test | 0.51 | |
| Residual Average | 0.0 | |
| Price Variance | 100.21 |
Avis Budget Group lagged returns against current returns
Autocorrelation, which is Avis Budget stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Avis Budget's stock expected returns. We can calculate the autocorrelation of Avis Budget returns to help us make a trade decision. For example, suppose you find that Avis Budget has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Avis Budget regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Avis Budget stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Avis Budget stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Avis Budget stock over time.
Current vs Lagged Prices |
| Timeline |
Avis Budget Lagged Returns
When evaluating Avis Budget's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Avis Budget stock have on its future price. Avis Budget autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Avis Budget autocorrelation shows the relationship between Avis Budget stock current value and its past values and can show if there is a momentum factor associated with investing in Avis Budget Group.
Regressed Prices |
| Timeline |
Pair Trading with Avis Budget
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 Avis Budget 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 Avis Budget will appreciate offsetting losses from the drop in the long position's value.Moving together with Avis Stock
| 0.92 | R | Ryder System | PairCorr |
| 0.9 | AL | Air Lease | PairCorr |
| 0.72 | WLFC | Willis Lease Finance | PairCorr |
| 0.64 | AER | AerCap Holdings NV | PairCorr |
Moving against Avis Stock
| 0.77 | YAYO | Yayyo Inc | PairCorr |
| 0.6 | ZCAR | Zoomcar Holdings Symbol Change | PairCorr |
| 0.57 | MWG | Multi Ways Holdings | PairCorr |
| 0.35 | TRTN-PD | Triton International | PairCorr |
| 0.32 | GSL | Global Ship Lease | PairCorr |
The ability to find closely correlated positions to Avis Budget could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Avis Budget 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 Avis Budget - 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 Avis Budget Group to buy it.
The correlation of Avis Budget 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 Avis Budget moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Avis Budget Group 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 Avis Budget 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.Additional Tools for Avis Stock Analysis
When running Avis Budget's price analysis, check to measure Avis Budget's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Avis Budget is operating at the current time. Most of Avis Budget's value examination focuses on studying past and present price action to predict the probability of Avis Budget's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Avis Budget's price. Additionally, you may evaluate how the addition of Avis Budget to your portfolios can decrease your overall portfolio volatility.