Credit Acceptance Stock Market Value
| CACC Stock | USD 460.02 12.45 2.78% |
| Symbol | Credit |
Credit Acceptance Price To Book Ratio
Is Consumer Finance 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 Credit Acceptance. If investors know Credit 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 Credit Acceptance 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 0.169 | Earnings Share 15.04 | Revenue Per Share 67.945 | Quarterly Revenue Growth 0.138 | Return On Assets 0.0236 |
The market value of Credit Acceptance is measured differently than its book value, which is the value of Credit that is recorded on the company's balance sheet. Investors also form their own opinion of Credit Acceptance's value that differs from its market value or its book value, called intrinsic value, which is Credit Acceptance'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 Credit Acceptance's market value can be influenced by many factors that don't directly affect Credit Acceptance'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 Credit Acceptance's value and its price as these two are different measures arrived at by different means. Investors typically determine if Credit Acceptance is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Credit Acceptance'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.
Credit Acceptance '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 Credit Acceptance'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 Credit Acceptance.
| 10/23/2024 |
| 11/22/2024 |
If you would invest 0.00 in Credit Acceptance on October 23, 2024 and sell it all today you would earn a total of 0.00 from holding Credit Acceptance or generate 0.0% return on investment in Credit Acceptance over 30 days. Credit Acceptance is related to or competes with World Acceptance, FirstCash, Dorman Products, Encore Capital, and CorVel Corp. Credit Acceptance Corporation provides financing programs, and related products and services to independent and franchis... More
Credit Acceptance 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 Credit Acceptance'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 Credit Acceptance upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.07) | |||
| Maximum Drawdown | 11.13 | |||
| Value At Risk | (2.29) | |||
| Potential Upside | 2.77 |
Credit Acceptance Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Credit Acceptance's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Credit Acceptance's standard deviation. In reality, there are many statistical measures that can use Credit Acceptance historical prices to predict the future Credit Acceptance's volatility.| Risk Adjusted Performance | (0.01) | |||
| Jensen Alpha | (0.16) | |||
| Total Risk Alpha | (0.27) | |||
| Treynor Ratio | (0.03) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Credit Acceptance'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.
Credit Acceptance Backtested Returns
Credit Acceptance secures Sharpe Ratio (or Efficiency) of -0.0183, which signifies that the company had a -0.0183% return per unit of standard deviation over the last 3 months. Credit Acceptance exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Credit Acceptance's risk adjusted performance of (0.01), and Mean Deviation of 1.35 to double-check the risk estimate we provide. The firm shows a Beta (market volatility) of 1.4, 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, Credit Acceptance will likely underperform. At this point, Credit Acceptance has a negative expected return of -0.0363%. Please make sure to confirm Credit Acceptance's treynor ratio, skewness, and the relationship between the jensen alpha and value at risk , to decide if Credit Acceptance performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.25 |
Poor predictability
Credit Acceptance has poor predictability. Overlapping area represents the amount of predictability between Credit Acceptance 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 Credit Acceptance price movement. The serial correlation of 0.25 indicates that over 25.0% of current Credit Acceptance price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.25 | |
| Spearman Rank Test | 0.35 | |
| Residual Average | 0.0 | |
| Price Variance | 31.84 |
Credit Acceptance lagged returns against current returns
Autocorrelation, which is Credit Acceptance 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 Credit Acceptance's stock expected returns. We can calculate the autocorrelation of Credit Acceptance returns to help us make a trade decision. For example, suppose you find that Credit Acceptance 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 |
Credit Acceptance 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 Credit Acceptance stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Credit Acceptance stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Credit Acceptance stock over time.
Current vs Lagged Prices |
| Timeline |
Credit Acceptance Lagged Returns
When evaluating Credit Acceptance's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Credit Acceptance stock have on its future price. Credit Acceptance 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, Credit Acceptance autocorrelation shows the relationship between Credit Acceptance stock current value and its past values and can show if there is a momentum factor associated with investing in Credit Acceptance.
Regressed Prices |
| Timeline |
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether Credit Acceptance offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Credit Acceptance'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 Credit Acceptance Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Credit Acceptance Stock:Check out Credit Acceptance Correlation, Credit Acceptance Volatility and Credit Acceptance Alpha and Beta module to complement your research on Credit Acceptance. For information on how to trade Credit Stock refer to our How to Trade Credit Stock guide.You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Credit Acceptance 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.