Innovator IBD Price To Book vs. Beta
| FFTY Etf | USD 29.42 0.42 1.41% |
For Innovator IBD profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Innovator IBD to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Innovator IBD 50 utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Innovator IBD's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Innovator IBD 50 over time as well as its relative position and ranking within its peers.
Innovator |
The market value of Innovator IBD 50 is measured differently than its book value, which is the value of Innovator that is recorded on the company's balance sheet. Investors also form their own opinion of Innovator IBD's value that differs from its market value or its book value, called intrinsic value, which is Innovator IBD'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 Innovator IBD's market value can be influenced by many factors that don't directly affect Innovator IBD'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 Innovator IBD's value and its price as these two are different measures arrived at by different means. Investors typically determine if Innovator IBD is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Innovator IBD'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.
Innovator IBD 50 Beta vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Innovator IBD's current stock value. Our valuation model uses many indicators to compare Innovator IBD value to that of its competitors to determine the firm's financial worth. Innovator IBD 50 is one of the top ETFs in price to book as compared to similar ETFs. It also is one of the top ETFs in beta as compared to similar ETFs totaling about 0.38 of Beta per Price To Book. The ratio of Price To Book to Beta for Innovator IBD 50 is roughly 2.67 . 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 Innovator IBD's earnings, one of the primary drivers of an investment's value.Innovator Beta 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.
Innovator IBD |
| = | 3.76 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.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Innovator IBD |
| = | 1.41 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Innovator Beta Comparison
Innovator IBD is currently under evaluation in beta as compared to similar ETFs.
Beta Analysis
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Innovator IBD will likely underperform.
Innovator IBD Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Innovator IBD, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Innovator IBD will eventually generate negative long term returns. The profitability progress is the general direction of Innovator IBD's change in net profit over the period of time. It can combine multiple indicators of Innovator IBD, 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.
The fund will normally invest at least 80 percent of its net assets in securities that comprise the index. Innovator Ibd is traded on NYSEARCA Exchange in the United States.
Innovator Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Innovator IBD. 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 Innovator IBD 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 Innovator IBD's important profitability drivers and their relationship over time.
Use Innovator IBD 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 Innovator IBD 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 Innovator IBD will appreciate offsetting losses from the drop in the long position's value.Innovator IBD Pair Trading
Innovator IBD 50 Pair Trading Analysis
The ability to find closely correlated positions to Innovator IBD could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Innovator IBD 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 Innovator IBD - 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 Innovator IBD 50 to buy it.
The correlation of Innovator IBD 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 Innovator IBD moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Innovator IBD 50 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 Innovator IBD 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.Use Investing Themes to Complement your Innovator IBD position
In addition to having Innovator IBD 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.Did You Try This Idea?
Run Machinery Thematic Idea Now
Machinery
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Machinery 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 Machinery Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Investing Opportunities. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
To fully project Innovator IBD's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Innovator IBD 50 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 Innovator IBD's income statement, its balance sheet, and the statement of cash flows.