LKQ Historical Valuation
| LKQ Stock | USD 36.88 0.88 2.44% |
Some fundamental drivers such as market cap or LKQ enterprice value can be analyzed from historical perspective to project value of the company into the future. Some investors analyze LKQ Corporation valuation indicators such as to time the market or to short-sell their positions based on the trend in valuation ratios. It is a perfect tool to project the direction of LKQ's future value.
LKQ |
About LKQ Valuation Data Analysis
Valuation is the financial process of determining what LKQ is worth. LKQ valuation ratios put that insight into the context of a company's share price, where they serve as useful tools for evaluating and utilizing investment potential. LKQ valuation ratios help investors to determine whether LKQ Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in LKQ with respect to the benefits of owning LKQ security.
LKQ Valuation Data Chart
Enterprise Value
Enterprise Value (or EV) is usually referred to as LKQ theoretical takeover price. In the event of an acquisition, an acquirer would have to take on LKQ Corporation debt, but would also pocket its cash. Enterprise Value is more accurate representation of LKQ value than its market capitalization because it takes into account all of LKQ Corporation existing debt. A measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization that includes the market capitalization, plus total debt, minority interest and preferred shares, minus total cash and cash equivalents.Pair Trading with LKQ
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 LKQ 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 LKQ will appreciate offsetting losses from the drop in the long position's value.Moving together with LKQ Stock
Moving against LKQ Stock
The ability to find closely correlated positions to LKQ could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace LKQ 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 LKQ - 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 LKQ Corporation to buy it.
The correlation of LKQ 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 LKQ moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if LKQ Corporation 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 LKQ 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 LKQ Stock Analysis
When running LKQ's price analysis, check to measure LKQ'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 LKQ is operating at the current time. Most of LKQ's value examination focuses on studying past and present price action to predict the probability of LKQ's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move LKQ's price. Additionally, you may evaluate how the addition of LKQ to your portfolios can decrease your overall portfolio volatility.