Essity AB (Sweden) Probability of Future Stock Price Finishing Over 301.0
| ESSITY-A | SEK 303.50 1.00 0.33% |
Essity |
Essity AB Target Price Odds to finish over 301.0
The tendency of Essity Stock price to converge on an average value over time is a known aspect in finance that investors have used since the beginning of the stock market for forecasting. However, many studies suggest that some traded equity instruments are consistently mispriced before traders' demand and supply correct the spread. One possible conclusion to this anomaly is that these stocks have additional risk, for which investors demand compensation in the form of extra returns.
| Current Price | Horizon | Target Price | Odds to stay above kr 301.00 in 90 days |
| 303.50 | 90 days | 301.00 | about 81.91 |
Based on a normal probability distribution, the odds of Essity AB to stay above kr 301.00 in 90 days from now is about 81.91 (This Essity AB probability density function shows the probability of Essity Stock to fall within a particular range of prices over 90 days) . Probability of Essity AB price to stay between kr 301.00 and its current price of kr303.5 at the end of the 90-day period is about 9.42 .
Assuming the 90 days trading horizon Essity AB has a beta of 0.0485 suggesting as returns on the market go up, Essity AB average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Essity AB will be expected to be much smaller as well. Additionally Essity AB has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Essity AB Price Density |
| Price |
Predictive Modules for Essity AB
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Essity AB. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Essity AB's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Essity AB Risk Indicators
For the most part, the last 10-20 years have been a very volatile time for the stock market. Essity AB is not an exception. The market had few large corrections towards the Essity AB's value, including both sudden drops in prices as well as massive rallies. These swings have made and broken many portfolios. An investor can limit the violent swings in their portfolio by implementing a hedging strategy designed to limit downside losses. If you hold Essity AB, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of Essity AB within the framework of very fundamental risk indicators.α | Alpha over Dow Jones | -0.04 | |
β | Beta against Dow Jones | 0.05 | |
σ | Overall volatility | 7.95 | |
Ir | Information ratio | -0.15 |
Essity AB Alerts and Suggestions
In today's market, stock alerts give investors the competitive edge they need to time the market and increase returns. Checking the ongoing alerts of Essity AB for significant developments is a great way to find new opportunities for your next move. Suggestions and notifications for Essity AB can help investors quickly react to important events or material changes in technical or fundamental conditions and significant headlines that can affect investment decisions.| Essity AB generated a negative expected return over the last 90 days | |
| Essity AB has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations | |
| Essity AB has accumulated 58.24 B in total debt with debt to equity ratio (D/E) of 106.0, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Essity AB has a current ratio of 0.89, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Essity AB until it has trouble settling it off, either with new capital or with free cash flow. So, Essity AB's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Essity AB sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Essity to invest in growth at high rates of return. When we think about Essity AB's use of debt, we should always consider it together with cash and equity. | |
| Over 83.0% of Essity AB shares are held by institutions such as insurance companies |
Essity AB Price Density Drivers
Market volatility will typically increase when nervous long traders begin to feel the short-sellers pressure to drive the market lower. The future price of Essity Stock often depends not only on the future outlook of the current and potential Essity AB's investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. Essity AB's indicators that are reflective of the short sentiment are summarized in the table below.
| Common Stock Shares Outstanding | 702.3 M | |
| Cash And Short Term Investments | 9.2 B |
Essity AB Technical Analysis
Essity AB's future price can be derived by breaking down and analyzing its technical indicators over time. Essity Stock technical analysis helps investors analyze different prices and returns patterns as well as diagnose historical swings to determine the real value of Essity AB. In general, you should focus on analyzing Essity Stock price patterns and their correlations with different microeconomic environments and drivers.
Essity AB Predictive Forecast Models
Essity AB's time-series forecasting models is one of many Essity AB's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models are widely used for non-stationary data. Non-stationary data are called the data whose statistical properties, e.g., the mean and standard deviation, are not constant over time, but instead, these metrics vary over time. This non-stationary Essity AB's historical data is usually called time series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the stock market movement and maximize returns from investment trading.
Things to note about Essity AB
Checking the ongoing alerts about Essity AB for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for Essity AB help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
| Essity AB generated a negative expected return over the last 90 days | |
| Essity AB has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations | |
| Essity AB has accumulated 58.24 B in total debt with debt to equity ratio (D/E) of 106.0, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Essity AB has a current ratio of 0.89, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Essity AB until it has trouble settling it off, either with new capital or with free cash flow. So, Essity AB's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Essity AB sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Essity to invest in growth at high rates of return. When we think about Essity AB's use of debt, we should always consider it together with cash and equity. | |
| Over 83.0% of Essity AB shares are held by institutions such as insurance companies |
Other Information on Investing in Essity Stock
Essity AB financial ratios help investors to determine whether Essity 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 Essity with respect to the benefits of owning Essity AB security.