Builders Firstsource Stock Market Value
| BLDR Stock | USD 178.52 2.61 1.48% |
| Symbol | Builders |
Builders FirstSource Price To Book Ratio
Is Building Products 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 Builders FirstSource. If investors know Builders 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 Builders FirstSource 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 (0.32) | Earnings Share 10.23 | Revenue Per Share 139.453 | Quarterly Revenue Growth (0.07) | Return On Assets 0.103 |
The market value of Builders FirstSource is measured differently than its book value, which is the value of Builders that is recorded on the company's balance sheet. Investors also form their own opinion of Builders FirstSource's value that differs from its market value or its book value, called intrinsic value, which is Builders FirstSource'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 Builders FirstSource's market value can be influenced by many factors that don't directly affect Builders FirstSource'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 Builders FirstSource's value and its price as these two are different measures arrived at by different means. Investors typically determine if Builders FirstSource is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Builders FirstSource'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.
Builders FirstSource '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 Builders FirstSource'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 Builders FirstSource.
| 02/04/2023 |
| 11/25/2024 |
If you would invest 0.00 in Builders FirstSource on February 4, 2023 and sell it all today you would earn a total of 0.00 from holding Builders FirstSource or generate 0.0% return on investment in Builders FirstSource over 660 days. Builders FirstSource is related to or competes with Apogee Enterprises, Azek, Lennox International, Gibraltar Industries, Advanced Drainage, Trane Technologies, and Fortune Brands. Builders FirstSource, Inc., together with its subsidiaries, manufactures and supplies building materials, manufactured c... More
Builders FirstSource 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 Builders FirstSource'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 Builders FirstSource upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.24 | |||
| Information Ratio | (0) | |||
| Maximum Drawdown | 15.89 | |||
| Value At Risk | (3.07) | |||
| Potential Upside | 3.76 |
Builders FirstSource Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Builders FirstSource's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Builders FirstSource's standard deviation. In reality, there are many statistical measures that can use Builders FirstSource historical prices to predict the future Builders FirstSource's volatility.| Risk Adjusted Performance | 0.047 | |||
| Jensen Alpha | (0) | |||
| Total Risk Alpha | (0.26) | |||
| Sortino Ratio | (0) | |||
| Treynor Ratio | 0.1181 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Builders FirstSource'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.
Builders FirstSource Backtested Returns
Currently, Builders FirstSource is very steady. Builders FirstSource secures Sharpe Ratio (or Efficiency) of 0.0269, which signifies that the company had a 0.0269% return per unit of risk over the last 3 months. We have found thirty technical indicators for Builders FirstSource, which you can use to evaluate the volatility of the firm. Please confirm Builders FirstSource's Downside Deviation of 2.24, risk adjusted performance of 0.047, and Mean Deviation of 1.64 to double-check if the risk estimate we provide is consistent with the expected return of 0.0557%. Builders FirstSource has a performance score of 2 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.96, which signifies possible diversification benefits within a given portfolio. Builders FirstSource returns are very sensitive to returns on the market. As the market goes up or down, Builders FirstSource is expected to follow. Builders FirstSource right now shows a risk of 2.07%. Please confirm Builders FirstSource potential upside, and the relationship between the total risk alpha and kurtosis , to decide if Builders FirstSource will be following its price patterns.
Auto-correlation | -0.44 |
Modest reverse predictability
Builders FirstSource has modest reverse predictability. Overlapping area represents the amount of predictability between Builders FirstSource time series from 4th of February 2023 to 31st of December 2023 and 31st of December 2023 to 25th 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 Builders FirstSource price movement. The serial correlation of -0.44 indicates that just about 44.0% of current Builders FirstSource price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.44 | |
| Spearman Rank Test | -0.09 | |
| Residual Average | 0.0 | |
| Price Variance | 340.19 |
Builders FirstSource lagged returns against current returns
Autocorrelation, which is Builders FirstSource 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 Builders FirstSource's stock expected returns. We can calculate the autocorrelation of Builders FirstSource returns to help us make a trade decision. For example, suppose you find that Builders FirstSource 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 |
Builders FirstSource 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 Builders FirstSource stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Builders FirstSource stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Builders FirstSource stock over time.
Current vs Lagged Prices |
| Timeline |
Builders FirstSource Lagged Returns
When evaluating Builders FirstSource's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Builders FirstSource stock have on its future price. Builders FirstSource 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, Builders FirstSource autocorrelation shows the relationship between Builders FirstSource stock current value and its past values and can show if there is a momentum factor associated with investing in Builders FirstSource.
Regressed Prices |
| Timeline |
Pair Trading with Builders FirstSource
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 Builders FirstSource 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 Builders FirstSource will appreciate offsetting losses from the drop in the long position's value.Moving against Builders Stock
The ability to find closely correlated positions to Builders FirstSource could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Builders FirstSource 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 Builders FirstSource - 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 Builders FirstSource to buy it.
The correlation of Builders FirstSource 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 Builders FirstSource moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Builders FirstSource 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 Builders FirstSource 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.Additional Tools for Builders Stock Analysis
When running Builders FirstSource's price analysis, check to measure Builders FirstSource'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 Builders FirstSource is operating at the current time. Most of Builders FirstSource's value examination focuses on studying past and present price action to predict the probability of Builders FirstSource's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Builders FirstSource's price. Additionally, you may evaluate how the addition of Builders FirstSource to your portfolios can decrease your overall portfolio volatility.