Lincoln Electric Holdings Stock Market Value
| LECO Stock | USD 218.48 1.86 0.86% |
| Symbol | Lincoln |
Lincoln Electric Holdings Price To Book Ratio
Is Industrial Machinery & Supplies & Components 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 Lincoln Electric. If investors know Lincoln 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 Lincoln Electric 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 (0.20) | Dividend Share 2.84 | Earnings Share 8.39 | Revenue Per Share 71.184 | Quarterly Revenue Growth (0.05) |
The market value of Lincoln Electric Holdings is measured differently than its book value, which is the value of Lincoln that is recorded on the company's balance sheet. Investors also form their own opinion of Lincoln Electric's value that differs from its market value or its book value, called intrinsic value, which is Lincoln Electric'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 Lincoln Electric's market value can be influenced by many factors that don't directly affect Lincoln Electric'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 Lincoln Electric's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lincoln Electric is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lincoln Electric'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.
Lincoln Electric '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 Lincoln Electric'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 Lincoln Electric.
| 11/01/2024 |
| 12/01/2024 |
If you would invest 0.00 in Lincoln Electric on November 1, 2024 and sell it all today you would earn a total of 0.00 from holding Lincoln Electric Holdings or generate 0.0% return on investment in Lincoln Electric over 30 days. Lincoln Electric is related to or competes with Kennametal, Toro, Snap On, RBC Bearings, Timken, Eastern, and Hillman Solutions. Lincoln Electric Holdings, Inc., through its subsidiaries, designs, develops, manufactures, and sells welding, cutting, ... More
Lincoln Electric 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 Lincoln Electric'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 Lincoln Electric Holdings upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.68 | |||
| Information Ratio | 0.0325 | |||
| Maximum Drawdown | 9.04 | |||
| Value At Risk | (2.12) | |||
| Potential Upside | 3.09 |
Lincoln Electric Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Lincoln Electric's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Lincoln Electric's standard deviation. In reality, there are many statistical measures that can use Lincoln Electric historical prices to predict the future Lincoln Electric's volatility.| Risk Adjusted Performance | 0.0843 | |||
| Jensen Alpha | (0.04) | |||
| Total Risk Alpha | (0.14) | |||
| Sortino Ratio | 0.0381 | |||
| Treynor Ratio | 0.1057 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Lincoln Electric's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Lincoln Electric Holdings Backtested Returns
Lincoln Electric appears to be very steady, given 3 months investment horizon. Lincoln Electric Holdings has Sharpe Ratio of 0.14, which conveys that the firm had a 0.14% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Lincoln Electric, which you can use to evaluate the volatility of the firm. Please exercise Lincoln Electric's Risk Adjusted Performance of 0.0843, downside deviation of 1.68, and Mean Deviation of 1.47 to check out if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Lincoln Electric holds a performance score of 10. The company secures a Beta (Market Risk) of 1.81, which conveys 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, Lincoln Electric will likely underperform. Please check Lincoln Electric's treynor ratio, kurtosis, period momentum indicator, as well as the relationship between the downside variance and day median price , to make a quick decision on whether Lincoln Electric's current price movements will revert.
Auto-correlation | 0.58 |
Modest predictability
Lincoln Electric Holdings has modest predictability. Overlapping area represents the amount of predictability between Lincoln Electric time series from 1st of November 2024 to 16th of November 2024 and 16th of November 2024 to 1st of December 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 Lincoln Electric Holdings price movement. The serial correlation of 0.58 indicates that roughly 58.0% of current Lincoln Electric price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.58 | |
| Spearman Rank Test | 0.47 | |
| Residual Average | 0.0 | |
| Price Variance | 36.64 |
Lincoln Electric Holdings lagged returns against current returns
Autocorrelation, which is Lincoln Electric 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 Lincoln Electric's stock expected returns. We can calculate the autocorrelation of Lincoln Electric returns to help us make a trade decision. For example, suppose you find that Lincoln Electric 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 |
Lincoln Electric 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 Lincoln Electric stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Lincoln Electric stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Lincoln Electric stock over time.
Current vs Lagged Prices |
| Timeline |
Lincoln Electric Lagged Returns
When evaluating Lincoln Electric's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Lincoln Electric stock have on its future price. Lincoln Electric 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, Lincoln Electric autocorrelation shows the relationship between Lincoln Electric stock current value and its past values and can show if there is a momentum factor associated with investing in Lincoln Electric Holdings.
Regressed Prices |
| Timeline |
Pair Trading with Lincoln Electric
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 Lincoln Electric 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 Lincoln Electric will appreciate offsetting losses from the drop in the long position's value.Moving together with Lincoln Stock
Moving against Lincoln Stock
| 0.58 | SWK | Stanley Black Decker | PairCorr |
| 0.54 | BA | Boeing Fiscal Year End 29th of January 2025 | PairCorr |
| 0.48 | QEPC | QEP Co Inc | PairCorr |
| 0.44 | EML | Eastern | PairCorr |
| 0.38 | TKR | Timken Company | PairCorr |
The ability to find closely correlated positions to Lincoln Electric could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lincoln Electric 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 Lincoln Electric - 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 Lincoln Electric Holdings to buy it.
The correlation of Lincoln Electric 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 Lincoln Electric moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lincoln Electric Holdings 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 Lincoln Electric 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.Check out Lincoln Electric Correlation, Lincoln Electric Volatility and Lincoln Electric Alpha and Beta module to complement your research on Lincoln Electric. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Lincoln Electric technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.