Check Point Software Stock Market Value
| CHKP Stock | USD 182.00 0.45 0.25% |
| Symbol | Check |
Check Point Software Price To Book Ratio
Is Systems Software 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 Check Point. If investors know Check 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 Check Point 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 0.046 | Earnings Share 7.3 | Revenue Per Share 22.535 | Quarterly Revenue Growth 0.065 | Return On Assets 0.1 |
The market value of Check Point Software is measured differently than its book value, which is the value of Check that is recorded on the company's balance sheet. Investors also form their own opinion of Check Point's value that differs from its market value or its book value, called intrinsic value, which is Check Point'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 Check Point's market value can be influenced by many factors that don't directly affect Check Point'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 Check Point's value and its price as these two are different measures arrived at by different means. Investors typically determine if Check Point is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Check Point'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.
Check Point '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 Check Point'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 Check Point.
| 10/31/2024 |
| 11/30/2024 |
If you would invest 0.00 in Check Point on October 31, 2024 and sell it all today you would earn a total of 0.00 from holding Check Point Software or generate 0.0% return on investment in Check Point over 30 days. Check Point is related to or competes with Rapid7, Tenable Holdings, Okta, WixCom, Akamai Technologies, VeriSign, and Qualys. Check Point Software Technologies Ltd. develops, markets, and supports a range of products and services for IT security ... More
Check Point 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 Check Point'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 Check Point Software upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.08) | |||
| Maximum Drawdown | 17.62 | |||
| Value At Risk | (1.86) | |||
| Potential Upside | 2.75 |
Check Point Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Check Point's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Check Point's standard deviation. In reality, there are many statistical measures that can use Check Point historical prices to predict the future Check Point's volatility.| Risk Adjusted Performance | (0.01) | |||
| Jensen Alpha | (0.16) | |||
| Total Risk Alpha | (0.41) | |||
| Treynor Ratio | (0.06) |
Check Point Software Backtested Returns
Check Point Software secures Sharpe Ratio (or Efficiency) of -0.0195, which signifies that the company had a -0.0195% return per unit of standard deviation over the last 3 months. Check Point Software exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Check Point's mean deviation of 1.1, and Risk Adjusted Performance of (0.01) to double-check the risk estimate we provide. The firm shows a Beta (market volatility) of 0.85, which signifies possible diversification benefits within a given portfolio. Check Point returns are very sensitive to returns on the market. As the market goes up or down, Check Point is expected to follow. At this point, Check Point Software has a negative expected return of -0.0427%. Please make sure to confirm Check Point's total risk alpha, as well as the relationship between the skewness and day median price , to decide if Check Point Software performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.85 |
Very good predictability
Check Point Software has very good predictability. Overlapping area represents the amount of predictability between Check Point time series from 31st of October 2024 to 15th of November 2024 and 15th of November 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 Check Point Software price movement. The serial correlation of 0.85 indicates that around 85.0% of current Check Point price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.85 | |
| Spearman Rank Test | 0.68 | |
| Residual Average | 0.0 | |
| Price Variance | 13.26 |
Check Point Software lagged returns against current returns
Autocorrelation, which is Check Point 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 Check Point's stock expected returns. We can calculate the autocorrelation of Check Point returns to help us make a trade decision. For example, suppose you find that Check Point 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 |
Check Point 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 Check Point stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Check Point stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Check Point stock over time.
Current vs Lagged Prices |
| Timeline |
Check Point Lagged Returns
When evaluating Check Point's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Check Point stock have on its future price. Check Point 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, Check Point autocorrelation shows the relationship between Check Point stock current value and its past values and can show if there is a momentum factor associated with investing in Check Point Software.
Regressed Prices |
| Timeline |
Pair Trading with Check Point
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 Check Point 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 Check Point will appreciate offsetting losses from the drop in the long position's value.Moving against Check Stock
| 0.64 | NN | Nextnav Acquisition Corp | PairCorr |
| 0.58 | FFIV | F5 Networks | PairCorr |
| 0.55 | EVCM | EverCommerce | PairCorr |
| 0.52 | CETXP | Cemtrex Pref | PairCorr |
| 0.44 | SQ | Block Inc Sell-off Trend | PairCorr |
The ability to find closely correlated positions to Check Point could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Check Point 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 Check Point - 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 Check Point Software to buy it.
The correlation of Check Point 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 Check Point moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Check Point Software 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 Check Point 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 Check Stock Analysis
When running Check Point's price analysis, check to measure Check Point'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 Check Point is operating at the current time. Most of Check Point's value examination focuses on studying past and present price action to predict the probability of Check Point's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Check Point's price. Additionally, you may evaluate how the addition of Check Point to your portfolios can decrease your overall portfolio volatility.