Radian EBITDA vs. Current Valuation
| RAG Stock | EUR 29.80 0.60 1.97% |
For Radian profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Radian to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Radian Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Radian's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Radian Group over time as well as its relative position and ranking within its peers.
Radian |
Radian Group Current Valuation vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Radian's current stock value. Our valuation model uses many indicators to compare Radian value to that of its competitors to determine the firm's financial worth. Radian Group is rated fourth in ebitda category among its peers. It is rated below average in current valuation category among its peers reporting about 3.65 of Current Valuation per EBITDA. 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 Radian's earnings, one of the primary drivers of an investment's value.Radian Current Valuation vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Radian |
| = | 1.11 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Radian |
| = | 4.06 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Radian Current Valuation vs Competition
Radian Group is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Insurance - Specialty industry is at this time estimated at about 37.15 Billion. Radian retains roughly 4.06 Billion in current valuation claiming about 11% of equities under Insurance - Specialty industry.
Radian Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Radian, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Radian will eventually generate negative long term returns. The profitability progress is the general direction of Radian's change in net profit over the period of time. It can combine multiple indicators of Radian, 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.
Radian Group Inc., through its subsidiaries, engages in the mortgage and real estate services business in the United States. The company was founded in 1977 and is headquartered in Philadelphia, Pennsylvania. RADIAN GRP operates under Insurance - Specialty classification in Germany and is traded on Frankfurt Stock Exchange. It employs 1942 people.
Radian Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Radian. 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 Radian 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 Radian's important profitability drivers and their relationship over time.
Use Radian 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 Radian 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 Radian will appreciate offsetting losses from the drop in the long position's value.Radian Pair Trading
Radian Group Pair Trading Analysis
The ability to find closely correlated positions to Radian could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Radian 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 Radian - 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 Radian Group to buy it.
The correlation of Radian 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 Radian moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Radian Group 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 Radian 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 Radian position
In addition to having Radian 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 Printing and Publishing Thematic Idea Now
Printing and Publishing
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Printing and Publishing theme has 21 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 Printing and Publishing Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Radian Stock
When determining whether Radian Group offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Radian's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Radian Group Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Radian Group Stock:Check out Your Equity Center. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
To fully project Radian's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Radian Group 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 Radian's income statement, its balance sheet, and the statement of cash flows.