Discover Financial Price To Book vs. Shares Owned By Insiders

DC7 Stock  EUR 167.96  6.00  3.70%   
Taking into consideration Discover Financial's profitability measurements, Discover Financial Services may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Discover Financial's ability to earn profits and add value for shareholders.
For Discover Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Discover Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Discover Financial Services utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Discover Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Discover Financial Services over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Discover Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Discover Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Discover Financial'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.

Discover Financial Shares Owned By Insiders vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Discover Financial's current stock value. Our valuation model uses many indicators to compare Discover Financial value to that of its competitors to determine the firm's financial worth.
Discover Financial Services is rated below average in price to book category among its peers. It is rated # 5 in shares owned by insiders category among its peers making about  0.30  of Shares Owned By Insiders per Price To Book. The ratio of Price To Book to Shares Owned By Insiders for Discover Financial Services is roughly  3.33 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Discover Financial's earnings, one of the primary drivers of an investment's value.

Discover Shares Owned By Insiders vs. Price To Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Discover Financial

P/B

 = 

MV Per Share

BV Per Share

 = 
2.17 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Shares Owned by Insiders show the percentage of outstanding shares owned by insiders (such as principal officers or members of the board of directors) or private individuals and entities with over 5% of the total shares outstanding. Company executives or private individuals with access to insider information share information about a firm's operations that is not available to the general public.

Discover Financial

Insiders Shares

 = 

Executives Shares

+

Employees

 = 
0.65 %
Although the research on effects of insider trading on prices and volatility is still relatively inconclusive, and investors are advised to pay close attention to the distribution of equities among company's stakeholders to avoid many problems associated with the disclosure of price-sensitive information.

Discover Shares Owned By Insiders Comparison

Discover Financial is rated # 4 in shares owned by insiders category among its peers.

Discover Financial Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Discover Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Discover Financial will eventually generate negative long term returns. The profitability progress is the general direction of Discover Financial's change in net profit over the period of time. It can combine multiple indicators of Discover Financial, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Discover Financial Services, through its subsidiaries, operates as a direct banking and payment services company in the United States. The company was incorporated in 1986 and is based in Riverwoods, Illinois. DISCOVER FINL operates under Credit Services classification in Germany and is traded on Frankfurt Stock Exchange. It employs 16600 people.

Discover Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Discover Financial. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Discover Financial position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Discover Financial's important profitability drivers and their relationship over time.

Use Discover Financial in pair-trading

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 Discover Financial 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 Discover Financial will appreciate offsetting losses from the drop in the long position's value.

Discover Financial Pair Trading

Discover Financial Services Pair Trading Analysis

The ability to find closely correlated positions to Discover Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Discover Financial 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 Discover Financial - 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 Discover Financial Services to buy it.
The correlation of Discover Financial 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 Discover Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Discover Financial 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 Discover Financial 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Discover Financial position

In addition to having Discover Financial in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Precious Metals Thematic Idea Now

Precious Metals
Precious Metals Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Precious Metals theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Precious Metals Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Discover Stock

When determining whether Discover Financial is a strong investment it is important to analyze Discover Financial's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Discover Financial's future performance. For an informed investment choice regarding Discover Stock, refer to the following important reports:
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You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
To fully project Discover Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Discover Financial at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Discover Financial's income statement, its balance sheet, and the statement of cash flows.
Potential Discover Financial investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Discover Financial investors may work on each financial statement separately, they are all related. The changes in Discover Financial's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Discover Financial's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.