The Wendys Co Stock Market Value
| WEN Stock | USD 17.98 0.13 0.72% |
| Symbol | Wendys |
The Wendys Price To Book Ratio
Is Hotels, Restaurants & Leisure 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 Wendys. If investors know Wendys 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 Wendys 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 (0.11) | Dividend Share 1 | Earnings Share 0.94 | Revenue Per Share 10.801 | Quarterly Revenue Growth 0.029 |
The market value of The Wendys is measured differently than its book value, which is the value of Wendys that is recorded on the company's balance sheet. Investors also form their own opinion of Wendys' value that differs from its market value or its book value, called intrinsic value, which is Wendys' 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 Wendys' market value can be influenced by many factors that don't directly affect Wendys' 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 Wendys' value and its price as these two are different measures arrived at by different means. Investors typically determine if Wendys is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Wendys' 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.
Wendys '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 Wendys' 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 Wendys.
| 02/04/2023 |
| 11/25/2024 |
If you would invest 0.00 in Wendys on February 4, 2023 and sell it all today you would earn a total of 0.00 from holding The Wendys Co or generate 0.0% return on investment in Wendys over 660 days. Wendys is related to or competes with Yum Brands, Dominos Pizza, Darden Restaurants, Papa Johns, Yum China, Restaurant Brands, and Brinker International. The Wendys Company, together with its subsidiaries, operates as a quick-service restaurant company More
Wendys 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 Wendys' 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 The Wendys Co upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.93 | |||
| Information Ratio | 0.0094 | |||
| Maximum Drawdown | 10.31 | |||
| Value At Risk | (2.45) | |||
| Potential Upside | 3.27 |
Wendys Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Wendys' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Wendys' standard deviation. In reality, there are many statistical measures that can use Wendys historical prices to predict the future Wendys' volatility.| Risk Adjusted Performance | 0.0668 | |||
| Jensen Alpha | 0.0184 | |||
| Total Risk Alpha | (0.16) | |||
| Sortino Ratio | 0.0091 | |||
| Treynor Ratio | 0.1393 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Wendys' 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.
The Wendys Backtested Returns
As of now, Wendys Stock is very steady. The Wendys shows Sharpe Ratio of 0.0713, which attests that the company had a 0.0713% return per unit of risk over the last 3 months. We have found thirty technical indicators for The Wendys, which you can use to evaluate the volatility of the company. Please check out Wendys' Mean Deviation of 1.39, downside deviation of 1.93, and Market Risk Adjusted Performance of 0.1493 to validate if the risk estimate we provide is consistent with the expected return of 0.14%. Wendys has a performance score of 5 on a scale of 0 to 100. The firm maintains a market beta of 0.99, which attests to possible diversification benefits within a given portfolio. Wendys returns are very sensitive to returns on the market. As the market goes up or down, Wendys is expected to follow. The Wendys right now maintains a risk of 1.9%. Please check out The Wendys downside variance, and the relationship between the sortino ratio and accumulation distribution , to decide if The Wendys will be following its historical returns.
Auto-correlation | 0.05 |
Virtually no predictability
The Wendys Co has virtually no predictability. Overlapping area represents the amount of predictability between Wendys time series from 4th of February 2023 to 31st of December 2023 and 31st of December 2023 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 The Wendys price movement. The serial correlation of 0.05 indicates that only as little as 5.0% of current Wendys price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.05 | |
| Spearman Rank Test | 0.22 | |
| Residual Average | 0.0 | |
| Price Variance | 1.05 |
The Wendys lagged returns against current returns
Autocorrelation, which is Wendys 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 Wendys' stock expected returns. We can calculate the autocorrelation of Wendys returns to help us make a trade decision. For example, suppose you find that Wendys 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 |
Wendys 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 Wendys stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Wendys stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Wendys stock over time.
Current vs Lagged Prices |
| Timeline |
Wendys Lagged Returns
When evaluating Wendys' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Wendys stock have on its future price. Wendys 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, Wendys autocorrelation shows the relationship between Wendys stock current value and its past values and can show if there is a momentum factor associated with investing in The Wendys Co.
Regressed Prices |
| Timeline |
Pair Trading with Wendys
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 Wendys 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 Wendys will appreciate offsetting losses from the drop in the long position's value.Moving together with Wendys Stock
Moving against Wendys Stock
| 0.55 | ARKR | Ark Restaurants Corp | PairCorr |
| 0.54 | WING | Wingstop | PairCorr |
| 0.49 | LNW | Light Wonder | PairCorr |
| 0.42 | IGT | International Game | PairCorr |
The ability to find closely correlated positions to Wendys could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Wendys 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 Wendys - 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 The Wendys Co to buy it.
The correlation of Wendys 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 Wendys moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if The Wendys 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 Wendys 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.Check out Wendys Correlation, Wendys Volatility and Wendys Alpha and Beta module to complement your research on Wendys. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Wendys 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.