Taylor Morrison Current Valuation vs. Total Debt
| THM Stock | 64.00 0.50 0.78% |
For Taylor Morrison profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Taylor Morrison to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Taylor Morrison Home utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Taylor Morrison's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Taylor Morrison Home over time as well as its relative position and ranking within its peers.
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Taylor Morrison Home Total Debt vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Taylor Morrison's current stock value. Our valuation model uses many indicators to compare Taylor Morrison value to that of its competitors to determine the firm's financial worth. Taylor Morrison Home is rated below average in current valuation category among its peers. It also is rated below average in total debt category among its peers making up about 0.45 of Total Debt per Current Valuation. The ratio of Current Valuation to Total Debt for Taylor Morrison Home is roughly 2.22 . 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 Taylor Morrison's earnings, one of the primary drivers of an investment's value.Taylor Total Debt vs. Current Valuation
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.
Taylor Morrison |
| = | 5.52 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.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Taylor Morrison |
| = | 2.48 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Taylor Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Taylor Morrison. 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 Taylor Morrison 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 Taylor Morrison's important profitability drivers and their relationship over time.
Use Taylor Morrison 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 Taylor Morrison 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 Taylor Morrison will appreciate offsetting losses from the drop in the long position's value.Taylor Morrison Pair Trading
Taylor Morrison Home Pair Trading Analysis
The ability to find closely correlated positions to Taylor Morrison could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Taylor Morrison 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 Taylor Morrison - 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 Taylor Morrison Home to buy it.
The correlation of Taylor Morrison 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 Taylor Morrison moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Taylor Morrison Home 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 Taylor Morrison 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 Taylor Morrison position
In addition to having Taylor Morrison 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 Books Thematic Idea Now
Books
Companies involved in publishing of books, newspapers, periodicals and other mass publications. The Books theme has 48 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 Books Theme or any other thematic opportunities.
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Additional Tools for Taylor Stock Analysis
When running Taylor Morrison's price analysis, check to measure Taylor Morrison'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 Taylor Morrison is operating at the current time. Most of Taylor Morrison's value examination focuses on studying past and present price action to predict the probability of Taylor Morrison's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Taylor Morrison's price. Additionally, you may evaluate how the addition of Taylor Morrison to your portfolios can decrease your overall portfolio volatility.