Honest Company Stock Market Value
| HNST Stock | USD 8.57 0.42 5.15% |
| Symbol | Honest |
Honest Company Price To Book Ratio
Is Personal Care 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 Honest. If investors know Honest 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 Honest listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.04) | Revenue Per Share 3.766 | Quarterly Revenue Growth 0.152 | Return On Assets (0.01) | Return On Equity (0.03) |
The market value of Honest Company is measured differently than its book value, which is the value of Honest that is recorded on the company's balance sheet. Investors also form their own opinion of Honest's value that differs from its market value or its book value, called intrinsic value, which is Honest'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 Honest's market value can be influenced by many factors that don't directly affect Honest'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 Honest's value and its price as these two are different measures arrived at by different means. Investors typically determine if Honest is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Honest'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.
Honest '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 Honest'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 Honest.
| 05/29/2024 |
| 11/25/2024 |
If you would invest 0.00 in Honest on May 29, 2024 and sell it all today you would earn a total of 0.00 from holding Honest Company or generate 0.0% return on investment in Honest over 180 days. Honest is related to or competes with Estee Lauder, Hims Hers, Procter Gamble, Coty, ELF Beauty, Beauty Health, and Kimberly Clark. The Honest Company, Inc. manufactures and sells diapers and wipes, skin and personal care, and household and wellness pr... More
Honest 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 Honest'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 Honest Company upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.62 | |||
| Information Ratio | 0.1993 | |||
| Maximum Drawdown | 26.16 | |||
| Value At Risk | (3.95) | |||
| Potential Upside | 7.36 |
Honest Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Honest's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Honest's standard deviation. In reality, there are many statistical measures that can use Honest historical prices to predict the future Honest's volatility.| Risk Adjusted Performance | 0.1829 | |||
| Jensen Alpha | 0.8798 | |||
| Total Risk Alpha | 0.3146 | |||
| Sortino Ratio | 0.3524 | |||
| Treynor Ratio | 0.7667 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Honest'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.
Honest Company Backtested Returns
Honest is relatively risky given 3 months investment horizon. Honest Company holds Efficiency (Sharpe) Ratio of 0.24, which attests that the entity had a 0.24% return per unit of risk over the last 3 months. We are able to interpolate and collect twenty-nine different technical indicators, which can help you to evaluate if expected returns of 1.1% are justified by taking the suggested risk. Use Honest Company Downside Deviation of 2.62, market risk adjusted performance of 0.7767, and Risk Adjusted Performance of 0.1829 to evaluate company specific risk that cannot be diversified away. Honest holds a performance score of 18 on a scale of zero to a hundred. The company retains a Market Volatility (i.e., Beta) of 1.36, which attests to 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, Honest will likely underperform. Use Honest Company maximum drawdown, as well as the relationship between the skewness and day typical price , to analyze future returns on Honest Company.
Auto-correlation | 0.62 |
Good predictability
Honest Company has good predictability. Overlapping area represents the amount of predictability between Honest time series from 29th of May 2024 to 27th of August 2024 and 27th of August 2024 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 Honest Company price movement. The serial correlation of 0.62 indicates that roughly 62.0% of current Honest price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.62 | |
| Spearman Rank Test | 0.23 | |
| Residual Average | 0.0 | |
| Price Variance | 1.32 |
Honest Company lagged returns against current returns
Autocorrelation, which is Honest 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 Honest's stock expected returns. We can calculate the autocorrelation of Honest returns to help us make a trade decision. For example, suppose you find that Honest 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 |
Honest 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 Honest stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Honest stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Honest stock over time.
Current vs Lagged Prices |
| Timeline |
Honest Lagged Returns
When evaluating Honest's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Honest stock have on its future price. Honest 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, Honest autocorrelation shows the relationship between Honest stock current value and its past values and can show if there is a momentum factor associated with investing in Honest Company.
Regressed Prices |
| Timeline |
Thematic Opportunities
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Additional Tools for Honest Stock Analysis
When running Honest's price analysis, check to measure Honest'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 Honest is operating at the current time. Most of Honest's value examination focuses on studying past and present price action to predict the probability of Honest's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Honest's price. Additionally, you may evaluate how the addition of Honest to your portfolios can decrease your overall portfolio volatility.