Northrop Grumman Stock Market Value
| NOC Stock | USD 482.38 1.19 0.25% |
| Symbol | Northrop |
Northrop Grumman Price To Book Ratio
Is Aerospace & Defense 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 Northrop Grumman. If investors know Northrop 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 Northrop Grumman 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 0.133 | Dividend Share 7.86 | Earnings Share 16.26 | Revenue Per Share | Quarterly Revenue Growth 0.023 |
The market value of Northrop Grumman is measured differently than its book value, which is the value of Northrop that is recorded on the company's balance sheet. Investors also form their own opinion of Northrop Grumman's value that differs from its market value or its book value, called intrinsic value, which is Northrop Grumman'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 Northrop Grumman's market value can be influenced by many factors that don't directly affect Northrop Grumman'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 Northrop Grumman's value and its price as these two are different measures arrived at by different means. Investors typically determine if Northrop Grumman is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Northrop Grumman'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.
Northrop Grumman '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 Northrop Grumman'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 Northrop Grumman.
| 12/19/2024 |
| 01/18/2025 |
If you would invest 0.00 in Northrop Grumman on December 19, 2024 and sell it all today you would earn a total of 0.00 from holding Northrop Grumman or generate 0.0% return on investment in Northrop Grumman over 30 days. Northrop Grumman is related to or competes with Raytheon Technologies, General Dynamics, Boeing, L3Harris Technologies, Lockheed Martin, Huntington Ingalls, and Curtiss Wright. Northrop Grumman Corporation operates as an aerospace and defense company worldwide More
Northrop Grumman 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 Northrop Grumman'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 Northrop Grumman upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.14) | |||
| Maximum Drawdown | 5.85 | |||
| Value At Risk | (2.33) | |||
| Potential Upside | 1.88 |
Northrop Grumman Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Northrop Grumman's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Northrop Grumman's standard deviation. In reality, there are many statistical measures that can use Northrop Grumman historical prices to predict the future Northrop Grumman's volatility.| Risk Adjusted Performance | (0.09) | |||
| Jensen Alpha | (0.16) | |||
| Total Risk Alpha | (0.18) | |||
| Treynor Ratio | (0.43) |
Northrop Grumman Backtested Returns
Northrop Grumman has Sharpe Ratio of -0.11, which conveys that the firm had a -0.11% return per unit of risk over the last 3 months. Northrop Grumman exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Northrop Grumman's Mean Deviation of 0.9229, risk adjusted performance of (0.09), and Standard Deviation of 1.22 to check out the risk estimate we provide. The company secures a Beta (Market Risk) of 0.35, which conveys possible diversification benefits within a given portfolio. As returns on the market increase, Northrop Grumman's returns are expected to increase less than the market. However, during the bear market, the loss of holding Northrop Grumman is expected to be smaller as well. At this point, Northrop Grumman has a negative expected return of -0.14%. Please make sure to verify Northrop Grumman's kurtosis, as well as the relationship between the day median price and period momentum indicator , to decide if Northrop Grumman performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.3 |
Weak reverse predictability
Northrop Grumman has weak reverse predictability. Overlapping area represents the amount of predictability between Northrop Grumman time series from 19th of December 2024 to 3rd of January 2025 and 3rd of January 2025 to 18th of January 2025. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Northrop Grumman price movement. The serial correlation of -0.3 indicates that nearly 30.0% of current Northrop Grumman price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.3 | |
| Spearman Rank Test | -0.09 | |
| Residual Average | 0.0 | |
| Price Variance | 100.4 |
Northrop Grumman lagged returns against current returns
Autocorrelation, which is Northrop Grumman 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 Northrop Grumman's stock expected returns. We can calculate the autocorrelation of Northrop Grumman returns to help us make a trade decision. For example, suppose you find that Northrop Grumman 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 |
Northrop Grumman 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 Northrop Grumman stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Northrop Grumman stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Northrop Grumman stock over time.
Current vs Lagged Prices |
| Timeline |
Northrop Grumman Lagged Returns
When evaluating Northrop Grumman's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Northrop Grumman stock have on its future price. Northrop Grumman 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, Northrop Grumman autocorrelation shows the relationship between Northrop Grumman stock current value and its past values and can show if there is a momentum factor associated with investing in Northrop Grumman.
Regressed Prices |
| Timeline |
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Check out Northrop Grumman Correlation, Northrop Grumman Volatility and Northrop Grumman Alpha and Beta module to complement your research on Northrop Grumman. For information on how to trade Northrop Stock refer to our How to Trade Northrop Stock guide.You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Northrop Grumman 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.