Beacon Roofing Supply Stock Market Value
| BECN Stock | USD 108.58 0.36 0.33% |
| Symbol | Beacon |
Beacon Roofing Supply Price To Book Ratio
Is Trading Companies & Distributors space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Beacon Roofing. If investors know Beacon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Beacon Roofing listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.01 | Earnings Share 5.86 | Revenue Per Share 153.258 | Quarterly Revenue Growth 0.073 | Return On Assets 0.0622 |
The market value of Beacon Roofing Supply is measured differently than its book value, which is the value of Beacon that is recorded on the company's balance sheet. Investors also form their own opinion of Beacon Roofing's value that differs from its market value or its book value, called intrinsic value, which is Beacon Roofing'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 Beacon Roofing's market value can be influenced by many factors that don't directly affect Beacon Roofing'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 Beacon Roofing's value and its price as these two are different measures arrived at by different means. Investors typically determine if Beacon Roofing is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Beacon Roofing'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.
Beacon Roofing 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Beacon Roofing's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Beacon Roofing.
| 10/23/2024 |
| 11/22/2024 |
If you would invest 0.00 in Beacon Roofing on October 23, 2024 and sell it all today you would earn a total of 0.00 from holding Beacon Roofing Supply or generate 0.0% return on investment in Beacon Roofing over 30 days. Beacon Roofing is related to or competes with Quanex Building, Gibraltar Industries, Armstrong World, Janus International, Apogee Enterprises, Azek, and Interface. Beacon Roofing Supply, Inc., together with its subsidiaries, distributes residential and non-residential roofing materia... More
Beacon Roofing Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Beacon Roofing's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Beacon Roofing Supply upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.89 | |||
| Information Ratio | 0.1251 | |||
| Maximum Drawdown | 11.44 | |||
| Value At Risk | (2.18) | |||
| Potential Upside | 3.74 |
Beacon Roofing Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Beacon Roofing's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Beacon Roofing's standard deviation. In reality, there are many statistical measures that can use Beacon Roofing historical prices to predict the future Beacon Roofing's volatility.| Risk Adjusted Performance | 0.1309 | |||
| Jensen Alpha | 0.2679 | |||
| Total Risk Alpha | 0.1136 | |||
| Sortino Ratio | 0.1594 | |||
| Treynor Ratio | 0.2777 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Beacon Roofing'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.
Beacon Roofing Supply Backtested Returns
Beacon Roofing appears to be very steady, given 3 months investment horizon. Beacon Roofing Supply secures Sharpe Ratio (or Efficiency) of 0.13, which signifies that the company had a 0.13% return per unit of standard deviation over the last 3 months. We have found twenty-eight technical indicators for Beacon Roofing Supply, which you can use to evaluate the volatility of the firm. Please makes use of Beacon Roofing's mean deviation of 1.74, and Risk Adjusted Performance of 0.1309 to double-check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Beacon Roofing holds a performance score of 10. The firm shows a Beta (market volatility) of 1.39, which signifies a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Beacon Roofing will likely underperform. Please check Beacon Roofing's value at risk, rate of daily change, and the relationship between the total risk alpha and expected short fall , to make a quick decision on whether Beacon Roofing's price patterns will revert.
Auto-correlation | 0.50 |
Modest predictability
Beacon Roofing Supply has modest predictability. Overlapping area represents the amount of predictability between Beacon Roofing time series from 23rd of October 2024 to 7th of November 2024 and 7th of November 2024 to 22nd of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Beacon Roofing Supply price movement. The serial correlation of 0.5 indicates that about 50.0% of current Beacon Roofing price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.5 | |
| Spearman Rank Test | 0.51 | |
| Residual Average | 0.0 | |
| Price Variance | 12.16 |
Beacon Roofing Supply lagged returns against current returns
Autocorrelation, which is Beacon Roofing stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Beacon Roofing's stock expected returns. We can calculate the autocorrelation of Beacon Roofing returns to help us make a trade decision. For example, suppose you find that Beacon Roofing has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Beacon Roofing regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Beacon Roofing stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Beacon Roofing stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Beacon Roofing stock over time.
Current vs Lagged Prices |
| Timeline |
Beacon Roofing Lagged Returns
When evaluating Beacon Roofing's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Beacon Roofing stock have on its future price. Beacon Roofing autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Beacon Roofing autocorrelation shows the relationship between Beacon Roofing stock current value and its past values and can show if there is a momentum factor associated with investing in Beacon Roofing Supply.
Regressed Prices |
| Timeline |
Pair Trading with Beacon Roofing
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 Beacon Roofing 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 Beacon Roofing will appreciate offsetting losses from the drop in the long position's value.Moving together with Beacon Stock
| 0.68 | DNOW | Now Inc | PairCorr |
| 0.78 | DXPE | DXP Enterprises | PairCorr |
| 0.86 | FAST | Fastenal Fiscal Year End 16th of January 2025 | PairCorr |
Moving against Beacon Stock
| 0.55 | BA | Boeing Fiscal Year End 29th of January 2025 | PairCorr |
| 0.54 | GIC | Global Industrial | PairCorr |
| 0.53 | TRNS | Transcat | PairCorr |
| 0.42 | AP | Ampco Pittsburgh | PairCorr |
The ability to find closely correlated positions to Beacon Roofing could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Beacon Roofing 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 Beacon Roofing - 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 Beacon Roofing Supply to buy it.
The correlation of Beacon Roofing 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 Beacon Roofing moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Beacon Roofing Supply 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 Beacon Roofing 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.Check out Beacon Roofing Correlation, Beacon Roofing Volatility and Beacon Roofing Alpha and Beta module to complement your research on Beacon Roofing. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Beacon Roofing technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.