Timken Company Stock Market Value
| TKR Stock | USD 75.96 0.74 0.98% |
| Symbol | Timken |
Timken Company Price To Book Ratio
Is Industrial Machinery & Supplies & Components 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 Timken. If investors know Timken 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 Timken 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 (0.06) | Dividend Share 1.34 | Earnings Share 4.82 | Revenue Per Share 65.34 | Quarterly Revenue Growth (0.01) |
The market value of Timken Company is measured differently than its book value, which is the value of Timken that is recorded on the company's balance sheet. Investors also form their own opinion of Timken's value that differs from its market value or its book value, called intrinsic value, which is Timken'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 Timken's market value can be influenced by many factors that don't directly affect Timken'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 Timken's value and its price as these two are different measures arrived at by different means. Investors typically determine if Timken is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Timken'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.
Timken '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 Timken'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 Timken.
| 12/01/2023 |
| 11/25/2024 |
If you would invest 0.00 in Timken on December 1, 2023 and sell it all today you would earn a total of 0.00 from holding Timken Company or generate 0.0% return on investment in Timken over 360 days. Timken is related to or competes with Lincoln Electric, and AB SKF. The Timken Company designs, manufactures, and manages engineered bearings and power transmission products worldwide More
Timken 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 Timken'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 Timken Company upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.09) | |||
| Maximum Drawdown | 16.5 | |||
| Value At Risk | (2.47) | |||
| Potential Upside | 2.64 |
Timken Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Timken's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Timken's standard deviation. In reality, there are many statistical measures that can use Timken historical prices to predict the future Timken's volatility.| Risk Adjusted Performance | (0.02) | |||
| Jensen Alpha | (0.29) | |||
| Total Risk Alpha | (0.48) | |||
| Treynor Ratio | (0.06) |
Timken Company Backtested Returns
Timken Company owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.043, which indicates the firm had a -0.043% return per unit of risk over the last 3 months. Timken Company exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Timken's Variance of 5.92, coefficient of variation of (2,734), and Risk Adjusted Performance of (0.02) to confirm the risk estimate we provide. The entity has a beta of 1.54, which indicates 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, Timken will likely underperform. At this point, Timken Company has a negative expected return of -0.1%. Please make sure to validate Timken's total risk alpha, kurtosis, as well as the relationship between the Kurtosis and market facilitation index , to decide if Timken Company performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.23 |
Weak reverse predictability
Timken Company has weak reverse predictability. Overlapping area represents the amount of predictability between Timken time series from 1st of December 2023 to 29th of May 2024 and 29th of May 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 Timken Company price movement. The serial correlation of -0.23 indicates that over 23.0% of current Timken price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.23 | |
| Spearman Rank Test | -0.06 | |
| Residual Average | 0.0 | |
| Price Variance | 9.42 |
Timken Company lagged returns against current returns
Autocorrelation, which is Timken 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 Timken's stock expected returns. We can calculate the autocorrelation of Timken returns to help us make a trade decision. For example, suppose you find that Timken 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 |
Timken 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 Timken stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Timken stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Timken stock over time.
Current vs Lagged Prices |
| Timeline |
Timken Lagged Returns
When evaluating Timken's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Timken stock have on its future price. Timken 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, Timken autocorrelation shows the relationship between Timken stock current value and its past values and can show if there is a momentum factor associated with investing in Timken Company.
Regressed Prices |
| Timeline |
Pair Trading with Timken
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 Timken 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 Timken will appreciate offsetting losses from the drop in the long position's value.Moving together with Timken Stock
Moving against Timken Stock
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The ability to find closely correlated positions to Timken could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Timken 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 Timken - 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 Timken Company to buy it.
The correlation of Timken 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 Timken moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Timken Company 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 Timken 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 Timken Stock Analysis
When running Timken's price analysis, check to measure Timken'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 Timken is operating at the current time. Most of Timken's value examination focuses on studying past and present price action to predict the probability of Timken's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Timken's price. Additionally, you may evaluate how the addition of Timken to your portfolios can decrease your overall portfolio volatility.