Penske Automotive Group Stock Market Value
| PAG Stock | USD 160.91 3.68 2.34% |
| Symbol | Penske |
Penske Automotive Price To Book Ratio
Is Automotive Retail 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 Penske Automotive. If investors know Penske 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 Penske Automotive 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 (0.14) | Dividend Share 4.09 | Earnings Share 13.06 | Revenue Per Share 447.96 | Quarterly Revenue Growth 0.019 |
The market value of Penske Automotive is measured differently than its book value, which is the value of Penske that is recorded on the company's balance sheet. Investors also form their own opinion of Penske Automotive's value that differs from its market value or its book value, called intrinsic value, which is Penske Automotive'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 Penske Automotive's market value can be influenced by many factors that don't directly affect Penske Automotive'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 Penske Automotive's value and its price as these two are different measures arrived at by different means. Investors typically determine if Penske Automotive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Penske Automotive'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.
Penske Automotive '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 Penske Automotive'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 Penske Automotive.
| 10/23/2024 |
| 11/22/2024 |
If you would invest 0.00 in Penske Automotive on October 23, 2024 and sell it all today you would earn a total of 0.00 from holding Penske Automotive Group or generate 0.0% return on investment in Penske Automotive over 30 days. Penske Automotive is related to or competes with Group 1, Lithia Motors, AutoNation, Asbury Automotive, and Sonic Automotive. Penske Automotive Group, Inc., a diversified transportation services company, operates automotive and commercial truck d... More
Penske Automotive 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 Penske Automotive'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 Penske Automotive Group upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.09) | |||
| Maximum Drawdown | 6.98 | |||
| Value At Risk | (2.44) | |||
| Potential Upside | 2.5 |
Penske Automotive Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Penske Automotive's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Penske Automotive's standard deviation. In reality, there are many statistical measures that can use Penske Automotive historical prices to predict the future Penske Automotive's volatility.| Risk Adjusted Performance | (0.02) | |||
| Jensen Alpha | (0.16) | |||
| Total Risk Alpha | (0.23) | |||
| Treynor Ratio | (0.04) |
Penske Automotive Backtested Returns
Penske Automotive maintains Sharpe Ratio (i.e., Efficiency) of -0.0343, which implies the firm had a -0.0343% return per unit of risk over the last 3 months. Penske Automotive exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Penske Automotive's Risk Adjusted Performance of (0.02), variance of 2.33, and Coefficient Of Variation of (3,502) to confirm the risk estimate we provide. The company holds a Beta of 1.26, which implies 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, Penske Automotive will likely underperform. At this point, Penske Automotive has a negative expected return of -0.0525%. Please make sure to check Penske Automotive's kurtosis, and the relationship between the maximum drawdown and rate of daily change , to decide if Penske Automotive performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.06 |
Virtually no predictability
Penske Automotive Group has virtually no predictability. Overlapping area represents the amount of predictability between Penske Automotive 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 Penske Automotive price movement. The serial correlation of 0.06 indicates that barely 6.0% of current Penske Automotive price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.06 | |
| Spearman Rank Test | -0.2 | |
| Residual Average | 0.0 | |
| Price Variance | 1.34 |
Penske Automotive lagged returns against current returns
Autocorrelation, which is Penske Automotive 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 Penske Automotive's stock expected returns. We can calculate the autocorrelation of Penske Automotive returns to help us make a trade decision. For example, suppose you find that Penske Automotive 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 |
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Penske Automotive 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 Penske Automotive stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Penske Automotive stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Penske Automotive stock over time.
Current vs Lagged Prices |
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Penske Automotive Lagged Returns
When evaluating Penske Automotive's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Penske Automotive stock have on its future price. Penske Automotive 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, Penske Automotive autocorrelation shows the relationship between Penske Automotive stock current value and its past values and can show if there is a momentum factor associated with investing in Penske Automotive Group.
Regressed Prices |
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Currently Active Assets on Macroaxis
When determining whether Penske Automotive is a strong investment it is important to analyze Penske Automotive's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Penske Automotive's future performance. For an informed investment choice regarding Penske Stock, refer to the following important reports:Check out Penske Automotive Correlation, Penske Automotive Volatility and Penske Automotive Alpha and Beta module to complement your research on Penske Automotive. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Penske Automotive 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.