Nvr Inc Stock Market Value
| NVR Stock | USD 9,236 41.96 0.46% |
| Symbol | NVR |
NVR Inc Price To Book Ratio
Is Household Durables 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 NVR. If investors know NVR 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 NVR 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 0.042 | Earnings Share 488.56 | Revenue Per Share 3.3 K | Quarterly Revenue Growth 0.06 | Return On Assets 0.1996 |
The market value of NVR Inc is measured differently than its book value, which is the value of NVR that is recorded on the company's balance sheet. Investors also form their own opinion of NVR's value that differs from its market value or its book value, called intrinsic value, which is NVR'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 NVR's market value can be influenced by many factors that don't directly affect NVR'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 NVR's value and its price as these two are different measures arrived at by different means. Investors typically determine if NVR is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NVR'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.
NVR '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 NVR'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 NVR.
| 12/12/2022 |
| 12/01/2024 |
If you would invest 0.00 in NVR on December 12, 2022 and sell it all today you would earn a total of 0.00 from holding NVR Inc or generate 0.0% return on investment in NVR over 720 days. NVR is related to or competes with Arhaus, Floor Decor, Haverty Furniture, Kingfisher Plc, Haverty Furniture, Kirklands, and Tile Shop. The company operates in two segments, Homebuilding and Mortgage Banking More
NVR 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 NVR'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 NVR Inc upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.33 | |||
| Information Ratio | (0.07) | |||
| Maximum Drawdown | 5.19 | |||
| Value At Risk | (1.93) | |||
| Potential Upside | 2.09 |
NVR Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for NVR's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as NVR's standard deviation. In reality, there are many statistical measures that can use NVR historical prices to predict the future NVR's volatility.| Risk Adjusted Performance | 0.0291 | |||
| Jensen Alpha | (0.02) | |||
| Total Risk Alpha | (0.18) | |||
| Sortino Ratio | (0.07) | |||
| Treynor Ratio | 0.0866 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of NVR'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.
NVR Inc Backtested Returns
Currently, NVR Inc is very steady. NVR Inc has Sharpe Ratio of 0.0303, which conveys that the firm had a 0.0303% return per unit of standard deviation over the last 3 months. We have found thirty technical indicators for NVR, which you can use to evaluate the volatility of the firm. Please verify NVR's Risk Adjusted Performance of 0.0291, mean deviation of 1.07, and Market Risk Adjusted Performance of 0.0966 to check out if the risk estimate we provide is consistent with the expected return of 0.0394%. NVR has a performance score of 2 on a scale of 0 to 100. The company secures a Beta (Market Risk) of 0.38, which conveys possible diversification benefits within a given portfolio. As returns on the market increase, NVR's returns are expected to increase less than the market. However, during the bear market, the loss of holding NVR is expected to be smaller as well. NVR Inc presently secures a risk of 1.3%. Please verify NVR Inc downside variance, as well as the relationship between the daily balance of power and period momentum indicator , to decide if NVR Inc will be following its current price movements.
Auto-correlation | 0.61 |
Good predictability
NVR Inc has good predictability. Overlapping area represents the amount of predictability between NVR time series from 12th of December 2022 to 7th of December 2023 and 7th of December 2023 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 NVR Inc price movement. The serial correlation of 0.61 indicates that roughly 61.0% of current NVR price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.61 | |
| Spearman Rank Test | 0.67 | |
| Residual Average | 0.0 | |
| Price Variance | 796.4 K |
NVR Inc lagged returns against current returns
Autocorrelation, which is NVR 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 NVR's stock expected returns. We can calculate the autocorrelation of NVR returns to help us make a trade decision. For example, suppose you find that NVR 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 |
NVR 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 NVR stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if NVR stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in NVR stock over time.
Current vs Lagged Prices |
| Timeline |
NVR Lagged Returns
When evaluating NVR's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of NVR stock have on its future price. NVR 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, NVR autocorrelation shows the relationship between NVR stock current value and its past values and can show if there is a momentum factor associated with investing in NVR Inc.
Regressed Prices |
| Timeline |
Pair Trading with NVR
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 NVR 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 NVR will appreciate offsetting losses from the drop in the long position's value.Moving against NVR Stock
The ability to find closely correlated positions to NVR could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NVR 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 NVR - 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 NVR Inc to buy it.
The correlation of NVR 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 NVR moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NVR Inc 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 NVR 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 NVR Stock Analysis
When running NVR's price analysis, check to measure NVR'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 NVR is operating at the current time. Most of NVR's value examination focuses on studying past and present price action to predict the probability of NVR's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NVR's price. Additionally, you may evaluate how the addition of NVR to your portfolios can decrease your overall portfolio volatility.